Finding Text
Program Information:
U.S. Department of the Interior
AL Number Award Number Award Period Grant Name
15.029 A21AV00088 10/1/2020-9/30/2023 Judicial Services
U.S. Department of Transportation
AL Number Award Number Award Period Grant Name
20.205 A18AV01093/A17AV00612 1/1/2018-12/31/2022 Highway Planning and Construction Cluster
Criteria:
Per 2 CFR § 200.303 Internal controls, the non-Federal entity must: (a) 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).
Reporting requirements are contained in the following:
Financial reporting, 2 CFR section 200.328.
Monitoring and reporting program performance, 2 CFR section 200.329.
Federal regulations and grant/contract conditions require financial and programmatic reports to be filed in a timely manner and should be supported by accurate supporting documentation.
Condition/Context:
15.029 – Judicial Services
Management has not implemented an effective internal control system for reporting. We were not provided the FY2022 Annual Narrative Report or FY2022 Quarterly SF-425 Federal Financial Reports.
20.205 – Highway Planning and Construction Cluster
Management has not implemented an effective internal control system for reporting. We were not provided 1 of 1 required PR-20 Voucher for Work Under Provisions of the Federal-Aid and Federal Highway Acts Report.
[X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness
Cause:
Policies and procedures have not been implemented properly to ensure compliance with federal reporting requirements. Further, Joint Programs did not have an effective control system in place to ensure that documentation was retained to support amounts originally reported.
Effect:
Without an effective internal control system an entity’s objective: operations, reporting, and compliance cannot be achieved. Additionally, Joint Programs is out of compliance with federal reporting requirements for the above programs and amounts reported to federal agencies may be inaccurate.
Questioned Costs:
Due to lack of sufficient documentation, we were unable to determine questioned costs.
Repeat Finding:
Yes – 2021-006.
Recommendation:
Joint Programs should improve the controls over the reporting function, which includes the documentation, review, and approval of all required reports, and effective controls over the preparation of reports, as well as a monitoring function to ensure that controls are in place and operating effectively for report submission.
View of Responsible Officials and Planned Corrective Action:
Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.