Finding 402815 (2023-004)

2023-004 U.S. Department of Treasury Passed through State of Minnesota Coronavirus State and Local Fiscal Recovery Funds Reporting Deficiency in Internal Control over Compliance Condition: During the course of our engagement, we noted that the City did not perform control procedures over the reporting process. The City Administrator prepared and submitted required reports. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over reporting. Cause: The City did not have processes in place to ensure reports were reviewed by someone other than the preparer. Effect: The reports submitted had an increased risk of not being accurate. Recommendation: We recommend the City establish a specific procedure to have someone review federally required reports other than the preparer. Management Response: The City will establish procedures to ensure future reports are reviewed.