Finding Text
Program Affected
66.818 Brownfields Assessment and Cleanup Cooperative Agreements
U.S. Environmental Protection Agency
Contract year: 2023
FAIN: 00A00664 / 00A00676 / 00A00909
Criteria
According to 2 CFR §200.303, the Organization must "establish and maintain effective internal control over the Federal award . . ."
Condition and Context
During tests of financial statement balances, it was determined that multiple internal controls over financial reporting were not effective which would impact federal awards. See Findings 2023-001 through 2023-008 for additional information.
Cause and Effect
The Organization does not have internal processes to properly identify costs related to the program. As a result, indirect costs may exceed allowable thresholds.
Questioned Costs
N/A
Identification of Repeat Findings
N/A
Recommendation
We recommend the Organization update its policies to implement sufficient internal controls over financial reporting to be able to properly identify costs related to the program.
Views of Responsible Officials and Planned Corrective Actions
Management agrees with the finding. See attached Planned Corrective Actions.