Finding Text
U.S. Department of Agriculture
Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster
Special Tests and Provisions
Significant Deficiency in Internal Control over Compliance
Criteria –2 CFR 200.303(a) establishes that the auditee must establish and maintain effective
internal control over the federal award that provides assurance that the entity is managing the
federal award in compliance with federal statutes, regulations, and conditions of the federal
award.
Condition – During our testing, there was no formal documented review over the reserve fund
reconciliation for the federal program.
Cause – PioneerCare did not have an adequate internal control policy in place to ensure review and
approval over the reserve fund was maintained.
Effect – The lack of adequate policies governing the review and approval of the reserve fund
increases the risk that employees participating in the federal award administration may not be able
to detect and correct noncompliance in a timely manner.
Questioned Costs – None reported.
Context – Sampling was not used. PioneerCare has two reserve accounts that were tested.
Repeat Finding from Prior Year – No
Recommendation – We recommend PioneerCare enhance internal control policies to ensure that formal
documentation of reviews are present.
Views of Responsible Officials ‐ Management agrees with the finding.