Finding Text
Finding 2022-005 Review of Reporting – Significant Deficiency in Internal Control Over
Compliance
Agency U.S. Department of Treasury
ALN 21.027
Program COVID-19 – Coronavirus Local Fiscal Recovery Fund
Award Year FY 2022
Pass-Through Agency State of Alaska Department of Commerce, Community, and Economic
Development
Pass-Through Entity
Identifying Number(s)
AK0049
Criteria 2 CFR 200.303, Internal Controls, requires that non-federal entities receiving
federal awards establish and maintain internal control designed to reasonably
ensure compliance with federal statues, regulations, and the terms and
conditions of the federal award.
Condition During our testing of the reporting requirements, we noted the one report
tested did not have evidence of review before submission.
Cause The City’s internal controls over reporting are not designed appropriately to
ensure reports required to be submitted to federal agencies are reviewed for
accuracy before submission.
Effect or potential
effect
Information submitted to the granting agency may be inaccurate or late.
Questioned costs Not applicable.
Context During our testwork of the one report required for submission, we identified
that the report was submitted timely, but no internal controls were
established to document the review and approval of the report before
submission.
Identification as a
repeat finding
Not a repeat finding.
Recommendation Management should review report due dates and ensure that accurate reports
are submitted before they are due.
Views of
responsible officials
Management agrees with the finding. All reporting will be reviewed by at
least one other staff member to ensure accuracy prior to submission.