Finding 350 (2021-003)

2021-003 Internal Control Criteria: Internal control is an integral component of an organization’s management that provides reasonable assurance that an objective of reliable financial reporting is being achieved. Organizations should implement procedures to ensure this objective is achieved. Condition: The entity does not have sufficient controls designed or in place to detect that payroll charged to grants can be substantiated by proper documentation. Effect: Because this control was not in place, noncompliance with the terms of grant agreements has occurred. Cause: The agency did not meet the requirements of its grant agreements. Recommendation: Design and implement a control that can ensure the payroll amounts charged to grants can be substantiated by proper documentation. Response: We agree with the findings and plan to implement steps to remedy the issue.