Finding 36520 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-07-12
Audit: 26116

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over reporting for the U.S. Department of Treasury funds, leading to discrepancies between submitted reports and accounting records.
  • Impacted Requirements: The organization failed to meet the reporting criteria set by Title 2 U.S. CFR 200.329, which mandates timely and accurate performance reports.
  • Recommended Follow-Up: Update written policies and procedures for reviewing and approving Federal award reporting to ensure accurate and complete expenditure reporting.

Finding Text

Finding 2022-002: Significant deficiency in internal control over reporting. Federal Agency Program: U.S. Department of Treasury, Passed through State of Oregon ? Department of Administrative Services Federal Program: 21.027 Coronavirus State and Local Fiscal Recovery Funds Award Period: January 1, 2022 ? December 31, 2022 Criteria: Title 2 U.S. Code of Federal Regulations (CFR) 200.329 requires that non-Federal entities submit performance reports at the interval required by the Federal awarding agency or pass-through entity. The grant agreement required quarterly and annual reports to be submitted. Condition: The quarterly reports and the annual reporting submitted for 2022 by the Organization did not agree to the quarterly information as per the Organization?s accounting records provided. Total award expenditures for the year agreed to the total annual amount reported. Context: Additional procedures were required to reconcile the Federal Award expenditures to the annual reporting submitted. Cause: The Organization received increased support during the year ended December 31, 2022, increasing the complexities of tracking and reporting of Federal expenditures. Policies and procedures over the review and approval of Federal award reporting were not adequately documented. Effect: Without adequate written policies and procedures over the review and approval of reporting of Federal award expenditures, total expenditures by Federal program may not be properly reported. Questioned costs: None. Repeat Finding: No. Recommendation: The Organization should update its written policies and procedures over the review and approval of Federal Award reporting to ensure complete and accurate reporting of award expenditures. Views of Responsible Officials: Management notes the details of this finding. Management will implement procedures to mitigate the outlined issues in our Corrective Action Plan.

Corrective Action Plan

Finding 2022-002: Significant deficiency in internal control over reporting. Summary: Although total award expenditures for the year agreed to the amount reported, quarterly reporting and annual reporting submitted for grant tracking did not match quarterly information as per accounting records. Corrective Action Planned: Written policies and procedures over the review and approval of Federal Award reporting will be updated to ensure complete and accurate reporting of award expenditures. Anticipated Completion Date: By Sept 30, 2023. Name of Contact Person Responsible for Corrective Action: Tammy Rash, Administrative Services Director

Categories

Subrecipient Monitoring Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 36519 2022-001
    Significant Deficiency
  • 612961 2022-001
    Significant Deficiency
  • 612962 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.55M
93.575 Covid-19 Child Care and Development Block Grant $148,971
93.268 Covid-19 Immunization Cooperative Agreements $37,778
14.218 Covid-19 Community Development Block Grants/entitlement Grants $26,262