Finding Text
Federal agency: U.S. Treasury
Federal program title: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Pass-Through Agency: Champaign County, Illinois; City of Urbana, Illinois
Pass-Through Number(s): 2224-FF-CO
Award Period: 7/1/2023-12/31/2026; 3/1/2022-12/31/2024
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or Specific Requirement: CFR § 200.329 indicates that the nonfederal entity is responsible for oversight of the operations of the Federal award supported activities. The nonfederal entity must monitor its activities under Federal awards to assure compliance with applicable Federal requirements and performance expectations are being achieved.
Condition: The Organization did not have an independent review occurring where it could maintain supporting documentation showing an independent review and approval was occurring prior to the financial reports being filed.
Questioned costs: N/A
Context: For 4 of 8 financial reports selected for testing did not have an independent review occurring so there could be evidence of an independent review occurring prior to the financial report being filed.
Cause: Error by management in having the reports reviewed by someone other than the preparer.
Effect: Incorrect or inaccurate reports could be filed if they are not reviewed prior to being filed.
Repeat Finding: Repeat Finding of 2023-006.
Recommendation: We recommend the Organization revise its internal controls to require an independent review of financial and performance reports prior to the reports being filed. The Organization should also ensure appropriate supporting documentation is maintained which shows the person who completed the review as well as the date the review was completed.
Views of responsible officials: The Organization will ensure the grant reports are reviewed by a separate individual prior to submitting to funders and document those reviews accordingly.