Finding 52312 (2022-001)

Department of the Treasury and the North Dakota Department of Commerce Federal Financial Assistance Listing 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery of Funds Period of Performance Significant Deficiency in Internal Control over Compliance Criteria - A good system of internal accounting control includes an adequate system for ensuring that all period of performance requirement are met, documented and approved. Condition - During the course of our engagement we noted that the City included a 2023 expenditure in the 2022 reported schedule of expenditures of federal awards. Cause - Control procedures in place did not detect the expenditures coded to the correct period. Effect - This expenditure is included in the wrong period. Questioned Costs - None reported. The total of known and projected questioned costs were less than the threshold that would require reporting. Context/Sampling - A non-statistical sample of 60 transactions out of a population over 250 total transactions were selected for testing, which accounted for $3,593,271 of $8,855,190 of federal program expenditures. Repeat Finding from Prior Year(s) - No Recommendation - Management should take steps to ensure that all federal expenditures are in the correct period under Uniform Guidance. Views of Responsible Officials - There is no disagreement with the audit finding.