Finding Text
Federal Reporting - Criteria – The Uniform Guidance, Part 200.303, requires the Agency to establish and maintain effective internal control over the federal award which provides reasonable assurance the Agency is managing the federal award in compliance with federal statutes, regulations and the terms of the federal award. The SF-425 report, “Federal Financial Report”, is the quarterly summary of financial activity for the federal award. The Complete Trip - ITS4US Deployment Program Phases 2 and 3 contract requires that the recipients of ITS4US grants must submit an SF-425 report quarterly, due the 30th calendar day of the month after the quarter being reported. In addition, the contract requires recipients to file monthly progress reporting in two parts: Part I: Technical Progress and Status Summary and Part II: Financial Status Summary. The monthly reports must be submitted no later than the tenth calendar day of the month following the reporting period. Condition – For the two SF-425 reports tested, reports were submitted timely, but the reports did not agree with the Agency’s financial information at the end of each quarter. In addition, there was no documentation of independent review of the quarterly reports prior to submission. For the two monthly progress reports tested, reports were filed with the required information, but each report was submitted nine days late and there was no documentation of independent review of the monthly reports prior to submission. Cause – The Agency did not have policies and procedures in place to reconcile SF-425 reports to financial information ensuring accurate reporting and to ensure the required federal reports were reviewed by an independent person with knowledge of the program prior to submission. In addition, procedures have not been established to ensure timely reporting. Effect - The lack of documented review including reconciliation of financial information increases the risk for undetected reporting errors or misstatements. In addition, the lack of policies and procedures in place by the Agency could result in late submission of reports. Recommendation – The Agency should establish policies and procedures to ensure all federal reports are reviewed and approved by an independent person who is knowledgeable about the program. This independent review should be documented by the reviewer’s signature or initials and date of review prior to submission. In addition, the Department should establish policies and procedures to ensure reports agree with the Agency’s records and are submitted timely. Response – We will update our Accounting Policy Manual and establish additional internal controls. Conclusion – Response accepted.