Finding Text
Department of Homeland Security, State of Illinois Office of Emergency Management,
Federal Financial Assistance Listing 97.036, 4728‐DR‐IL
Disaster Grants – Public Assistance
Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance
Material Weakness in Internal Control over Compliance
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Materials expenditures were claimed for reimbursement with no documented formal review and approval.
Cause: The Cooperative did not retain documentation to support the review and approval over material costs claimed for reimbursement under the program.
Effect: Without a formal documentation of review of expenses, demonstrating the expenditures comply with federal regulations is difficult.
Questioned Costs: No questioned costs over $25,000.
Context/Sampling: Nonstatistical sampling was used. Sample size was 60 transactions which accounted for $1,925,243 out of $2,310,004 of federal program expenditures of which $1,736,952 was submitted for reimbursement.
Repeat Finding form Prior Year: No
Recommendation: We recommend the Cooperative review the process for documenting the review and approval over material costs.
Views of Responsible Officials: Management agrees with the finding.