Finding Text
Department of Treasury
Federal Financial Assistance Listing/ALN 21.027
COVID‐19 Coronavirus State and Local Fiscal Recovery Funds
Allowable Costs and Allowable Activities
Significant Deficiency in Internal Control over Compliance
Criteria ‐ A good system of internal controls includes a process to ensure that proper approvals are obtained relating to costs under the program.
Condition ‐ We noted that the Organization’s internal controls did not have adequate internal controls to ensure costs are properly approved.
Cause ‐ During the course of our engagement, we noted that four costs under the program were not formally approved.
Effect ‐ The Organization’s internal controls failed to formally approve costs under the program.
Questioned Costs ‐ None Reported.
Context/Sampling ‐ A nonstatistical sample of 60 costs were selected for expense testing. 4 out of the 60 transactions did not have formal approval. These transactions totaled $3,449 of $293,562 costs tested.
Repeat Finding from Prior Year(s) ‐ No.
Recommendation ‐ Management should implement internal controls to ensure all costs under the program are formally approved.
Views of Responsible Officials ‐ There is no disagreement with the finding.