Finding Text
Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniformguidance) requires all grant recipients to ?Establish and maintain effective internal controlover the Federal award that provides reasonable assurance that the non-Federal entity ismanaging the Federal award in compliance with Federal statutes, regulations, and the termsand conditions of the Federal award.?, consistent with the Internal Control IntegratedFramework issued by the Committee of Sponsoring Organizations of the TreadwayCommission (COSO).Condition, Cause, and Effect/Potential Effect: The County did not establish and maintaineffective internal control over the reimbursement requests for this program, resulting inreimbursement requests being submitted with incorrect amounts and requiring revisions.This is the result of the grant manager not having sufficient knowledge of the allowablegrant expenditures, inaccurate collection of financial data, clerical errors in thereimbursements, insufficient communications between the grant manager and the grantoragency, inconsistent updating of internal records, and lack of timely updates to theinformation system to implement grantor-required changes for future reimbursements.These errors could result in unallowable costs being submitted for reimbursement, alsopotentially resulting in incorrect matching calculations.Questioned Costs: None noted.Context: Based on a nonstatistical sample of all 12 monthly reimbursement requests for thefiscal year, 8 were found by the grantor agency to be incorrect and had to be revised. Had thegrantor agency not detected the errors, the County would have been reimbursed approximately$12,500 more than what they were entitled.Repeat Finding from Prior Year: NoRecommendation: In order to ensure the accuracy of the reimbursement requests, the Countyshould enhance control procedures to ensure that a knowledgeable individual reviews grantreimbursement requests and supporting documentation for clerical accuracy and allowabilityprior to submission to the grantor agency, ensure all changes are documented in the grant files,and that reimbursement requests are submitted monthly in order to reflect the revisions infuture grant reimbursements.Views of Responsible Officials: Internal control procedures will be enhanced and supervisoryreview will be implemented to ensure proper completion of reimbursement requests.