Finding Text
2024-001 Report Review and Approval
Federal Agency: U.S Department of Treasury
Federal Program Name: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Federal Award Identification Number and Year: SLFRP0125 2022
Pass-through Agency: Florida Department of Environmental Protection
Award Period: January 30, 2023 through December 31, 2025
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria: Compliance: 2 CFR 200.302(b)(3) states that records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation.
Per 2 CFR section 200.303(a), a 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 comply 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: It was observed that quarterly progress reports lacked documentation of review and approval by management prior to submission.
Questioned Costs: None.
Context: Two of two quarterly progress reports selected for testing lacked documented review and approval.
Cause: The lack of review and approval of grant quarterly progress report submissions may be attributed to insufficient training of staff on the importance of the review process, inadequate staffing levels, or a lack of clear guidelines and procedures for the review and approval process.
Effect: The lack of a proper review and approval process for grant quarterly progress report submissions can result in the submission of inaccurate and incomplete reimbursement requests and reports, which may lead to non-compliance with grant requirements and potential financial penalties.
Repeat Finding: No
Recommendation: We recommend that the organization implement a review and approval process for
all quarterly progress report submissions. This should include:
- Training staff on the importance of the review and approval process.
- Ensuring adequate staffing levels to handle the review process.
- Developing clear guidelines and procedures for the review and approval process.
- Regularly monitoring and auditing the review process to ensure compliance.
View of Responsible Official and Planned Corrective Actions: Management concurs with the auditor’s recommendations. Additional fiscal staff has been hired to assist with various fiscal tasks including grant compliance and reporting. The guidelines are being updated, the checklist expanded, and documentation of secondary approval of reports is being retained. Grant guidelines, procedures, and checklists will be utilized to ensure compliance is maintained.