Finding Text
Criteria: Recipients of Federal awards must establish and maintain effective internal controls over reports that are prepared and submitted as required by the Federal programs and maintain evidence that such internal controls were performed.
Condition: We tested 14 sampled reports and noted that the Corporation was unable to provide sufficient and appropriate evidence that programmatic or financial reports required under the Federal programs were reviewed and approved by appropriate personnel prior to submission to the granting agency.
Cause: The Corporation did not have formal policies and procedures over reporting.
Effect or Potential Effect: Programmatic or financial reports submitted to the granting agencies may be incomplete or inaccurate.
Questioned costs: None
Context: Management was not able to produce sufficient and appropriate evidence that programmatic and SF-425 financial reports were reviewed and approved prior to submission to the granting agencies.
Repeat finding: This is a repeat finding from prior year. This was reported as finding 2021-007 in the 2021 report.
Recommendation: We recommend the Corporation establish formal internal controls, and documentation of their performance, relating to the review and approval of programmatic and financial reports by appropriate personnel who is knowledgeable of such reporting requirements.
View of Responsible Officials: The pandemic and subsequent shift to remote work disrupted the previous workflow of reviewing and approval of Federal programs reports prior to submission to the granting agency. In addition, due to turnover of several key financial executives and personnel and lack of formal documentation of current policies and procedures, the Corporation did not maintain sufficient or appropriate evidence that reviews and approvals were performed for each sampled report.