Finding Text
Finding 2020-008 Lack of Internal Controls Over Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Federal Agencies: U.S. Department of the Treasury
Federal Programs: Coronavirus Relief Fund
CFDA Numbers: 21.019
Award Number: SLT0591/0845/1405
Award Year: 2020
Type of Finding: Material weakness in internal control over compliance and material noncompliance.
Criteria: Per OMB 200.403(a) costs should be necessary and reasonable for the performance of the federal award.
Condition and Context: The Community could not provide adequate supporting documentation for costs charged to the Coronavirus Relief Fund. During our review of non-payroll costs charged to the program, the Community could not provide supporting documentation (invoice, check request, or management approval) for 18 of the 27 non-payroll transactions charged to the program.
Cause: Lack of internal controls over supporting documentation and approval over expenditures charged to the programs.
Effect: Lack of internal control over cash disbursements pose the risk that the Community will expend federal funds for non-grant purposes.
Questioned costs: Actual and likely questioned costs are below the reporting threshold of $25,000.
Repeat finding: This is a repeat of Finding 2019-008, therefore, we believe this to be a systemic issue.
Recommendation: We recommend that management implement policies and procedures to ensure that only allowable costs are charged to the program and that supporting documentation be kept for all transactions.
Management Response: Management agrees with this finding, see Corrective Action Plan.