Finding Text
Finding 2022-002 – Internal Control Deficiency and Noncompliance over Reporting
Identification of the Federal Program:
Federal Grantor: United States Department of the Treasury
Pass-Through Entity: Smith County, Texas and the City of San Marcos, Texas
Assistance Listing No.:21.027, Coronavirus State and Local Fiscal Recovery Funds
Pass-Through Award Numbers: Not available
Award Periods of Performance:
Trinity Mother Frances, Pass-through Smith County, October 1, 2021 – November 30, 2021
Santa Rosa, Pass-through the City of San Marcos, March 03, 2021 through December 31, 2026
Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation):
The Uniform Guidance 2 CFR section 200.303 states, “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”
The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”
Condition:
CHRISTUS did not originally prepare a complete and accurate listing of all federal awards in the SEFA.
Cause:
CHRISTUS did not have controls in place to ensure all federal expenditures were captured on the SEFA.
Effect or Potential Effect:
The SEFA prepared by CHRISTUS was misstated but was subsequently corrected. The misstatement resulted in the omission of a major federal program under the Uniform Guidance report.
Questioned Costs:
None.
Context:
Expenditures for Assistance Listing Number 21.027 were originally understated on the SEFA by $2,500,000, or 71% of the program.
Identification as a Repeat Finding, if Applicable:
This is not a repeat finding.
Recommendation:
CHRISTUS should review its internal controls over the process of accumulating and reporting expenditures of federal awards.
Views of Responsible Officials:
CHRISTUS agrees with the finding and has developed internal controls to ensure accurate and complete reporting of federal expenditures.