Finding Text
2022-3 Criteria or Specific Requirement - The Uniform Guidance Section 200.303 requires non-Federal entities to establish and maintain effective internal control over the Federal awards 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. Management is responsible for establishing and maintaining processes and internal control over financial reporting. Processes and internal control should allow management or employees, in the normal course of performing their assigned functions to prevent or detect misstatements. Condition and Context - The Organization's process and internal controls over the recording of cash disbursements were not sufficient to ensure that a federal expenditure of a subaward was recorded in the correct period. Effect - The lack of sufficient processes and internal controls puts the Organization at risk for misstatement due to error or fraud. Cause - Lack of experienced and knowledgeable staff to implement sufficient internal control. Recommendation - The Organization should consider hiring more experienced and knowledgeable personnel to administer and account for federal grants. We believe that due to the size and complexity of the Organization's federal grants, more experienced and knowledgeable staff is warranted. Views of Responsible Officials and Planned Corrective Action - Management agrees with the finding. The Organization has hired knowledgeable staff and has implemented a process to record a receivable in the corresponding period of expenditures submitted to the federal PMS portal.