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: City of Champaign, Illinois
Pass-Through Number(s): 20220245; 20220246
Award Period: 3/1/2023-12/30/2023; 12/15/2023-12/31/2024; 3/1/2022-12/31/2023; 12/15/2023-12/31/2024
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or Specific Requirement: Code of Federal Regulations (CFR) §200.303(a) indicates nonfederal entities must establish and maintain effective internal control over the Federal award 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).
Condition: Lack of supporting documentation showing management's review and approval of costs as being expensed in the proper grant period.
Questioned costs: N/A
Context: For 24 of the 35 disbursements tested there was no documentation showing management's review and approval of the expense as being in the proper grant period.
Cause: Error by management when reviewing the expenses to document their review on the invoice or other supporting documentation.
Effect: If costs are not reviewed and approved, it could result in incorrect costs being charged to federal grants.
Repeat Finding: N/A
Recommendation: We recommend the Organization enhance its internal controls in order to require the maintaining of appropriate supporting documentation to show invoices were reviewed before paid.
Views of responsible officials: The Organization will review our procedures surrounding ensuring that the proper accounting period is recorded for each transaction to identify any failures in the process.