Finding Text
Finding 2024-007 Federal Award Management and Internal Controls (Material Weakness)
Information on the Federal Program: 93.368
Criteria: As noted in 2 CFR §200.303 "The non-Federal entity must establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal
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: During our audit, we noted that management was unable to prepare the Schedule of
Expenditures of Federal Awards (SEFA) without assistance. In addition, we noted that formalized,
documented internal control policies have not been established over various areas of Federal award
management.
Cause: The Foundation's controls are not adequately designed, and staff within the Foundation are
not properly trained on Federal award management and reporting.
Effect or Potential Effect: Without the proper controls in place, there exists the potential for
reporting errors and the misappropriation of funds.
Identification as a Repeat Finding: Not a repeat finding.
Recommendation: We recommend the Foundation formalize internal control procedures over all
compliance areas that are adequately communicated to staff. In addition, the Foundation should
ensure all staff are properly trained on Federal award management and reporting.