Finding Text
Federal Agency: U.S. Department of Treasury
Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Award Period: July 1, 2022 through December 31, 2023
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: The Organization is required to submit quarterly Project and
Expenditure Reports to the Federal Agency.
Condition: The Organization did not have controls in place to prevent, detect, or correct errors
in reporting.
Questioned Costs: None
Context: During our testing, it was noted that there was no formal layer of review over the
quarterly report prepared before it was submitted to the grantor.
Cause: The Organization is in the startup phases and maintaining current operations with
limited staff.
Effect: The auditor noted no instances of noncompliance with the provisions of reporting;
however, the lack of internal controls over this compliance requirement provides an opportunity
for noncompliance.
Repeat finding: No
Recommendation: We recommend that reports are prepared and reviewed by separate
individuals.
Views of responsible officials: We agreed with the above comment. The Organization will put
a formal layer of review after preparation of the report and before submission to the grantor.