Finding 480321 (2023-001)

2023‐001 Department of the Treasury Federal Assistance Listing #21.027 COVID‐19 Claims Coronavirus State and Local Fiscal Recovery Funds Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control Over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition: Management prepared the Schedule for the year ended August 31, 2023. During the audit process, changes were proposed to include the COVID‐19 Claims Coronavirus State and Local Fiscal Recovery Funds, which were not originally included on the Schedule. Cause: Controls that were in place did not detect a misstatement to the Schedule. Effect: There is a reasonable possibility that misstatements to the Schedule may not be prevented and detected in a timely fashion. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend BHD, LLC review and strengthen the controls surrounding the preparation of the Schedule. Views of Responsible Officials: Management agrees with the finding.