Finding Text
2024-004 – Lack of Independent Review and Approval of Reporting
Finding Type. Immaterial Noncompliance. Significant Deficiency in Internal Control over Compliance (Reporting).
Program. COVID-19 - Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; Assistance Listing Number 21.027, All Award Numbers
Criteria. Recipients of federal awards are required to report periodically on financial information, as specified by the 2 CFR 200 Compliance Supplement or grant agreement. Reported information should be supported by the entity’s accounting records and subjected to an independent review and approval prior to submission in order to detect and correct any errors or omissions.
Condition. The Organization is required to submit quarterly reports on the grant expenditures, and we noted that these reports are not subjected to an independent review and approval process.
Cause. This condition was caused by the lack of understanding by program staff of the specific requirements of reporting.
Effect. As a result of this condition, the Organization did not comply fully with the reporting requirements under this federal award. In addition, the Organization was exposed to an increased risk that the reports filed could contain errors and not be detected and corrected on a timely basis.
Questioned Costs. No costs are required to be questioned as a result of this finding, inasmuch as no unallowable expenditures were noted.
Recommendation. We recommend that the Organization review its procedures for compiling financial data for external reporting purposes and develop an independent review process before report submission.
View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.