Finding Text
Finding 2022-003 Program Assistance Listing Number: 21.027 COVID-19 Coronavirus State & Local Fiscal Recovery Funds Federal Grantor: U.S. Department of Treasury Criteria: The Uniform Guidance and State Single Audit Guidelines require that local entities receiving federal and state awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations, and program compliance requirements. The Uniform Guidance and State Single Audit Guidelines further require auditors to obtain an understanding of the local entity's internal control over federal and state programs. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission reports, which should be reviewed and approved by a responsible party other than the original preparer. Condition/Context: The Project and Expenditure Report and the Interim Report tested were not reviewed by an independent person before submission. Cause: The City did not have internal control procedures in place requiring an independent person to review the reports before submission and ensure the reports were accurate and submitted timely. The sample was not a statistically valid sample. Effect: Reports that were submitted could contain errors. Questioned Costs: None noted. Recommendation: The City should review its internal control procedures to ensure there are proper review and approval processes in place over completeness and accuracy of its reporting requirements. Management's Response: The City has established a procedure where the Finance Director will extract all the appropriate documentation from MUNIS and assemble the applicable report. The Finance Director will print the report for review and approval by the Director of Accounting prior to submitting the report to the United States Treasury via the Treasury Portal.