Finding Text
Federal Agency: U.S. Department of the Treasury Program/Cluster: Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number: 21.027 Pass-through: N/A Award No. and Year: N/A Compliance Requirement: Reporting Type of Finding: Significant Deficiency Criteria: Per 2 CFR 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. This includes internal controls over maintaining records of the preparer and approver of required reports. Condition: We identified 4 instances in which the City did not retain evidence to document the individual who reviewed the required reports prior to submission. Of the instances identified, 3 of the reports (1 interim, and 2 quarterly reports) had zero activity reported for the period. Cause: The City?s procedures did not include documenting the review of the reports prior to submission. Effect: Ineffective controls over this area of compliance could result in reports that are inaccurate or incomplete being submitted to the granting agency. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: All interim (1) and quarterly (3) financial reports were selected for testing. Repeat Finding from Prior Year(s): No. Recommendation: We recommend that the City revise its procedures to include evidence to document the individual who reviewed required reports prior to submission. Views of Responsible Officials: Management partially concurs with the finding. See separate corrective action plan.