Finding 388328 (2023-002)

Department of Treasury Passed through Equal Justice Wyoming and Wyoming Department of Family Services Federal Financial Assistance Listing #21.023 Emergency Rental Assistance Program Activities Allowed or Unallowed and Allowable Costs/Costs Principles and Period of Performance Significant Deficiency in Internal Control Over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Medical Center was not able to provide supporting invoices for two of the testing selections. An additional selection contained a keying error. Cause: The Medical Center did have an internal control policy in place to ensure proper review and approval of the supporting invoices but controls did not appear to be functioning properly. Effect: The lack of adequate policies governing review and approval of the specific invoices increase the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. Without this documentation, ineligible expenditures may be claimed under the program. Questioned Costs: None reported. Context: A nonstatistical sample of 62 was selected for detail testing. The Medical Center was not able to provide supporting invoices for two of the testing selections. An additional selection contained a keying error. Repeat Finding from Prior Years: No Recommendation: We recommend that the Medical Center enhance internal control policies to ensure that all support utilized for the program is retained within accounting records. We also recommend that the Medical Center enhance internal control policies to ensure future keying errors are identified during the review process. Views of Responsible Officials: Management agrees with the finding.