Finding Text
Federal Agency: U.S. Department of Treasury Assistance listing number: 21.023 ? COVID-19 Emergency Rental Assistance Program Compliance requirements: Activities Allowed or Unallowed; Allowable Costs/Cost Principles; Period of Performance Criteria: In accordance with 2 CFR 200.303(a), Met Council must establish and maintain effective internal controls over Federal awards. The internal controls established should be in compliance with the Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and properly documented. Condition and Context: During our procedures, we noted the following instances when internal controls were not implemented in accordance with Met Council's policies: 1. One out of 60 invoices tested did not have documentation of approval by the appropriate individual indicating the purchase was proper. 2. 12 out of 60 invoices tested did not have documentation of review that the cost was allowable under the agreement and Uniform Guidance requirements. 3. Six out of 13 payroll reports tested did not have formal documentation of review and approval. We note that the deficiency was initially identified during the performance of the fiscal year 2021 audit procedures and the notification of this deficiency was first reported to management in May 2022 and therefore, resulted in a repeat finding. Cause: Internal controls over payroll and other than personnel services expenditures were not properly documented. Effect: Costs charged to the program may not be allowable under Uniform Guidance. Identification as a repeat finding: Yes - Finding 2021-002 Questioned costs: $0. Recommendation: We recommend that Met Council ensures the controls designed over payroll and other than personnel services expenditures are operating effectively and in a timely manner, and that Met Council maintains evidential proof the control was performed.