Finding Text
Finding 2022-002 Material Weakness Prior Reference Number - 2021-002 Federal Programs - Economic Adjustment Assistance (Assistance Listing No. 11.307), Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing No. 21.027) Condition - Expenditures submitted in grant reports lack a detailed review by someone other than the preparer of the Federal reports. Criteria - All expenditures submitted on federal grant reports should be reviewed by a person knowledgeable about the requirements for activities allowed or unallowed for the grant. As such, the Organization’s internal control over this process should ensure all expenditures are reviewed by a person with such knowledge. Cause - Controls in place are not sufficient to ensure completeness and accuracy of the reports submitted to granting agencies. Effect - Without proper controls in place, expenditures may not be complete, accurate or allowable under grant requirements and could result in unallowable federal expenditures reported. Recommendation - We recommend the Organization designate a knowledgeable person separate from the preparer of the reports to review all expenditures that go into the reports prior to submission. Management’s Response/Corrective Action Plan (unaudited) - We agree with the finding. The Organization has designated a knowledgeable person separate from the preparer of the reports to review all expenditures that go into the reports prior to submission.