Finding Text
2022-004 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: The Health Center 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. The Health Center has one reserve account that was tested. Repeat Finding From Prior Years: No Recommendation: We recommend that the Health Center enhance internal control policies to ensure that formal documentation of reviews are present. Views of Responsible Officials: Management agrees with the finding.