Finding Text
Department of Commerce
Federal Financial Assistance Listing #11.307
Economic Development Cluster COVID-19 Economic Adjustment Assistance
Preparation of Schedule of Expenditures of Federal Awards
Material Weakness in Internal Control Over Compliance - Other
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: The Authority does not have an internal control system designed to provide for a
complete and accurate schedule of expenditures of federal awards being audited. We were
requested to draft the schedule.
Cause: Auditor assistance with preparation of the schedule is not unusual as the schedule
has unique and specialized requirements and preparation is only required when the
Authority meets a specified threshold of federal expenditures.
Effect: There is a reasonable possibility that the Authority would not be able to draft the
schedule that is correct without the assistance of the auditors.
Questioned Costs: None reported
Context: Sampling was not used.
Repeat Finding from Prior Years: Yes, finding 2021-004
Recommendation: While we recognize that this condition is not unusual for an organization
with limited staffing, we recommend management be aware of the financial reporting
requirements relating to the Authority’s schedule and the internal controls that impact
financial reporting.
Views of Responsible Officials: Management agrees with the finding.