Finding Text
Federal Agencies: U.S. Department of the Treasury
Federal Programs: Emergency Rental Assistance Program
Assistance Listing Numbers: 21.023
Award Numbers: ERA0672
Award Years: 2021
Type of Finding: Significant deficiency in internal control over compliance.
Criteria: Adequate internal control over reporting should be in place to ensure that quarterly financial reports are reviewed and approved by a member of management prior to submission. Such approval processes should be clearly documented and maintained. These reports should also be in agreement with the underlying accounting system.
Condition and Context: During our testing of quarterly financial reporting, the council was unable to produce sufficient documentation to indicate that quarterly financial reports were reviewed and approved by management prior to submission. Additionally, the two quarterly reports that were reviewed did not agree to the Council’s general ledger.
Cause: Lack of internal control over reporting.
Effect: Lack of internal control over reporting could result in inaccurate and unauthorized reporting of program expenditures.
Questioned Costs: None noted.
Repeat Finding: This is not a repeat finding for the major federal program noted above, therefore, we believe this is not a systemic issue.
Recommendation: We recommend that management strictly adheres to adopted internal control procedures related to grant reporting.
Management’s Response: Management agrees with this finding. See Corrective Action Plan.