FAC Explorer

Finding 36417 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-28
Audit: 38083
Organization: Village of Belleville (WI)
Auditor: Baker Tilly US LLP

AI Summary

  • Core Issue: Reports for federal funds were prepared and reviewed by the same person, violating compliance requirements.
  • Impacted Requirements: Nonfederal entities must establish effective internal controls per 2 CFR 200.303(a) to ensure independent review of reports.
  • Recommended Follow-Up: The City should enhance internal controls to ensure reports are reviewed by someone other than the preparer before submission.

Finding Text

Finding 2022-002 Program ALN: 21.027 Program Title: COVID-19 Coronavirus State and Local Fiscal Recovery Fund Pass-Through Agency: Not applicable Award Number/year: Not applicable / 2022 Criteria: Nonfederal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the Federal award to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Review and approval of reports to be submitted under the program should be completed before submission by an individual separate from the preparer. Condition/Context: For the one report required to be submitted under the program in FY2022, the report was both prepared and reviewed by the same individual. The sample was not statistically valid. Cause: The City does not have an internal process in place to ensure all reports are reviewed by someone separate from the preparer prior to submission. Effect: Reports could be submitted that contain errors or reports may not be submitted within the allowed reporting periods. Questioned Costs: None noted. Recommendation: The City should consider enhancing its internal controls related to this program to include a review of reports by someone separate from the preparer prior to submission. Management's Response: The City will initiate proper control procedure to ensure reports are reviewed by someone independent of the preparer prior to submission to federal agencies.

Corrective Action Plan

Finding 2022-002 Program ALN: 21.027 Program Title: COVID-19 Coronavirus State and Local Fiscal Recovery Fund Pass-Through Agency: Not applicable Award Number/year: Not applicable / 2022 Criteria: Nonfederal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the Federal award to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Review and approval of reports to be submitted under the program should be completed before submission by an individual separate from the preparer. Condition/Context: For the one report required to be submitted under the program in FY2022, the report was both prepared and reviewed by the same individual. The sample was not statistically valid. Cause: The City does not have an internal process in place to ensure all reports are reviewed by someone separate from the preparer prior to submission. Effect: Reports could be submitted that contain errors or reports may not be submitted within the allowed reporting periods. Questioned Costs: None noted. Recommendation: The City should consider enhancing its internal controls related to this program to include a review of reports by someone separate from the preparer prior to submission. Corrective Action Plan Corrective Action Planned: Finance Director will prepare the report. Deputy Treasurer/Clerk will review the report before Finance Director submits the report. Name(s) of Contact Person(s) Responsible for Corrective Action: Mark Stevens, Finance Director Anticipated Completion Date: April 2024 (at point of annual submission)

Categories

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 612859 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $586,505
20.509 Formula Grants for Rural Areas and Tribal Transit Program $307,883
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $163,578
93.069 Public Health Emergency Preparedness $34,978
93.991 Preventive Health and Health Services Block Grant $10,936
93.994 Maternal and Child Health Services Block Grant to the States $10,454
93.268 Immunization Cooperative Agreements $7,461
16.034 Coronavirus Emergency Supplemental Funding Program $7,410
66.032 State Indoor Radon Grants $6,974
20.600 State and Community Highway Safety $5,000
16.607 Bulletproof Vest Partnership Program $1,210
90.404 2018 Hava Election Security Grants $217