Finding 390471 (2023-004)

Small Business Administration Financial Assistance Listing #59.008 COVID‐19 Disaster Assistance Loans Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance – Other Criteria: Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (schedule) and accompanying notes to the schedule. Condition: The Organization does not have an internal control system designed to provide for the preparation of the schedule. There was no documentation of review of the schedule retained and the schedule required adjustments. Cause: The Organization had turnover and limited staffing available. Effect: There is a reasonable possibility that the Organization would not be able to draft the schedule that is correct without the assistance of auditors. Questioned Costs: None reported Context/Sampling: Sampling was not used. Repeat Finding from Prior Year(s): Yes Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the Organization’s schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.