Finding Text
Department of the Treasury Federal Financial Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds Reporting 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: The Health Center does not have an internal control system designed to provide for review and approval of required reporting by an individual separate from the preparer. Cause: The Health Center did not have an internal control process in place to ensure a review and approval of the reports submitted for the federal program by someone other than the preparer of the report Effect: There is a potential risk that the reporting submitted for the federal program could contain errors. Questioned Costs: None reported Context: Sampling was not used Repeat Finding from Prior Years: No Recommendation: We recommend that the Health Center implement a control process which includes a documented secondary review and approval of required reports to be submitted for the federal program prior to submission. Views of Responsible Officials: Management agrees with the finding.