Finding Text
Finding 2023-003: Approval of Federal Financial and Programmatic Reports
Information on the Federal Programs: All Programs
Criteria: The U.S. Department of Labor requires that the Organizations submit a quarterly Federal Financial Report (FFR), SF-425, in accordance with the quarterly schedule indicated in its grant agreement, within 30 days following the end of each calendar quarter.
Condition: The Organizations filed its FFRs and required programmatic reports for the fiscal year by the required due dates. We noted that there was no formal review and approval of the FFRs and required programmatic reports.
Cause: Management did not have established internal controls in place to formally review and approve the FFRs and required programmatic reports to ensure accurate preparation and timely submission.
Effect: Without established controls over reporting and reimbursement requests, there is a reasonable possibility that the Organizations would not detect noncompliance in the normal course of performing duties and correct them in a timely manner.
Questioned Costs: N/A
Context: Our audit procedures consisted of testwork performed over cash receipts, draw down requests from the Federal Government and programmatic reports. We consider our sample to be representative of the population. The condition appears to be systemic in nature.
Identification as a Repeat Finding: Not applicable.
Recommendation: We recommend The Organizations establish formal policies and procedures with respect to the review and approval process over FFRs and required programmatic reports.