Finding 366587 (2023-001)

Finding - Reporting: Microloan Program, #59.046, Technical Assistance Grant. June 2023 Award Year, U.S. Small Business Administration Criteria or Specific Requirement Non-federal entities receiving federal awards must establish and maintain internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with the federal statutes, regulations, and the terms and conditions of the federal awards (2 CFR Section 200.303) Condition and Context Two quarterly reports and SF-425 reports were tested for the Microloan Technical Assistance grant. We noted that the CFO was preparing and signing the reports, but supervisory review of the completed reports was not performed prior to submission to the Small Business Administration. We did note that the underlying general ledger data that is used for preparing these reports is recorded by accounting staff and the data is reviewed by the CFO. Cause Staff turnover and shortages caused difficulty in segregating the preparation and review of the reports. Effect or Potential Effect Misstatements in the reports could go undetected. Questioned Costs None noted. Identification as a Repeat Finding Not a repeat finding. Recommendation We recommend procedures be implemented to include a supervisory review of reports to assure accuracy and completeness of the data and information included in the reports. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.