Finding Text
Finding 2023-005 – Internal Controls over Federal Awards (Material Weakness and Noncompliance)
Information on the Federal Program: U.S. Department of Justice, Assistance Listing No.16.575
Victims of Crime Act (VOCA)
Criteria: 2 CFR 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. 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).
Condition/Context: We selected 50 disbursements for testing. Of those 50, 25 were for payroll and
25 were non-payroll disbursements. Of the 25 payroll, 2 employees did not have an approved pay
rate. Of the 25 non-payroll, 9 of the expenses were allocated to the VOCA grant through a process
in the accounting system. 7 out of the 9 allocations were not properly documented as reviewed and
approved by management. Of the remaining 14 non-payroll disbursements, 4 lacked documentation
of approval for payment.
Cause: The Organization did not properly document controls established to review and approve
expenses charged to the grant.
Effect: The Organization did not comply with internal control compliance standards.
Questioned costs: None
Recommendation: We recommend the Organization strengthen its policies and procedures
surrounding disbursement and allocation processes to document the review and approval process to
meet the control standards.
Views of Responsible Officials: See Management’s View and Corrective Action Plan included at
the end of the report.