Finding Text
Assistance Listing, Federal Agency, and Program Name - ALN 21.027, COVID-19 - Coronavirus State and Local Fiscal Recovery Fund (CSLFRF)
Federal Award Identification Number and Year - FAIN not available, 2022
Pass-through Entity - N/A - Direct funded
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 2 CFR 200.303(a), nonfederal entities must establish and maintain effective intenral control over the federal award that provides resonable 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 - The Township did not have controls in place surrounding the review of annual performance reporting.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Not Applicable
If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - Not Applicable
Context - As the Township recieved less than $10 million of CSLFRF funding, the Township is required to submit an annual report for the program and have controls in place to ensure the report is filed on time and no errors in reporting occur.
Cause and Effect - During the review of internal controls over the annual performance report required by the program, it was noted that there was no secondary review of the annual report before or after submission however, the report was filed on time and no errors in reporting were noted as a result of our audit procedures.
Recommendation - In order to ensure reporting requirements are met and that reports are accurate, we recommend the Township incorporate a formal review process of the annual report.
Views of Responsible Officials and Corrective Action Plan - The Township has implemented a formal review process within the Finance and Budget Department to ensure the integrity of annual performance reporting. One staff member has been designated to compile and complete the performance reports, while a separate finance team member is responsible for conducting an independent review prior to submission. To support this process, an internal timeline has been established to allow sufficient time for thorough review and validation of all performance data before final submission.