Finding Text
2022-003 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance -Other Criteria: Proper controls over financial reporting include the ability to prepare the combined schedule of expenditures of federal awards (the schedule) and accompanying notes to the schedule. Condition: The System does not have an internal control system designed to provide for the preparation of the schedule. As auditors, we were requested to assist with the preparation of the schedule. Cause: Auditor assistance with the preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the System meets a specific threshold of federal expenditures. Effect: There is a reasonable possibility that the System would not be able to draft the schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Year: Yes, prior year finding 2021-003 Recommendation: While we recognized that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the System?s schedule and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.