Finding Text
2024 – 004
Federal Agency: U.S. Department of Justice
Federal Program Title: Crime Victim Assistance
Federal Assistance Listing Number: 16.575
Federal Award and Identification Number and Year: 15POVC23GG00443ASSI-2024
Pass-Through Agency: Minnesota Office of Justice Programs
Pass-Through Number(s): A-CVS-2024-AMS-077
Award Period: 10/01/2023 to 09/30/2025
Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Under 2 CFR section 200.303, a nonfederal entity must establish and maintain effective internal controls over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Timely review and approval should be maintained to ensure accurate amounts are being drawn down and accurate reports are submitted.
Condition: The Organization did not have adequate internal controls in place for the full fiscal year to ensure cash drawdowns and required reports are approved by the appropriate personnel before being submitted.
Questioned Costs: N/A
Context: Two of the three reimbursement requests and five of the five reports selected for testing did not have support retained to show the drawdowns, financial status reports, and other performance reports were reviewed and approved prior to submission. Cause: Management did not have a separate individual assigned to review the cash drawdowns and required reports for the Crime Victim Assistance program after being prepared by the Director of Finance for the full fiscal year.
Effect: Potential for inaccurate amounts of funds to be requested or inaccurate information reported.
Repeat Finding: This is a repeat finding.
Recommendation: A separate individual with supervisory authority over the preparer should be assigned to review and approve the cash drawdowns and reports prior to submission.
Views of Responsible Officials and Planned Corrective Actions: The Organization has designated an individual to review and approve the cash drawdowns and reports prior to submission.