Finding Text
See Schedule of Findings and Questioned Costs for chart/table 2022-006: Reporting (Significant Deficiency) Criteria: An internal control structure should be designed to identify possible reporting errors. A fundamental concept in an adequate system of internal control is independent review. Condition/context: During the completion of the fiscal year 2021 audit, it was identified that the Authority did not have a control system in place that allows for independent review and approval of the SF-425 financial reports. In January 2022, the Authority rectified the deficiency and established a control system. However, proper controls were not in place for the first six months of the fiscal year under audit. Cause: The concentration of closely related duties and responsibilities by a small staff can pose challenges within the Authority to establish an adequate system of independent reviews and approvals. Effect: If the Authority does not complete an independent review of its financial reports prior to submission, it is possible that the Authority could submit inaccurate or incomplete information to the U.S. Department of Energy. Questioned costs: $0 Identification as a repeat finding: Yes; see prior-year finding 2021-004. Recommendation: As the Authority has implemented a control system to ensure the independent review and approval of the SF-425 financial reports, we recommend continued compliance with the established control system. Views of responsible officials and planned corrective actions: Management concurs with the finding. See Exhibit I.