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: During our testing, the Corporation was unable to provide sufficient and appropriate evidence that Federal Funding Accountability and Transparency Act (FFATA) required under the Federal programs were submitted to the granting agency.
Cause: The Corporation did not have formal policies and procedures over FFATA reporting.
Effect or Potential Effect: FFATA required reports were not submitted to the granting agency.
Questioned costs: None
Context: Management was not able to produce sufficient and appropriate evidence that FFATA reports were submitted to the granting agency.
Repeat finding: No
Recommendation: We recommend the Corporation establish formal internal controls, and documentation of their performance, relating to the submission of the FFATA reporting requirements.
View of Responsible Officials: 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 the reports were submitted.