Finding Text
Finding 2023-005
Type of Finding: Significant Deficiency in Internal Control Over Compliance
Federal Agency: U.S. Small Business Administration and U.S. Department of Treasury
Federal Program: Congressional Grants, ALN No. 59.059, Award SBAHQ2210040, Award Period 9/1/2022 –
3/31/2023; and COVD-19 Coronavirus State and Local Fiscal Recovery Funds, ALN No. 21.027, Award FY22-
BASE-BTBC, Award Period 6/16/2022 – 6/15/2024
Compliance Requirement: Financial Reporting
Repeat Finding: Yes
Condition: Three grant reports lacked documentation of a detailed review by someone other than the preparer of the federal reports.
Questioned Costs: None
Context: The finding is noted for two of the two Quarterly Progress Reports tested for 21.027 and the one SF 425
Federal Financial Report tested for 59.059.
Criteria: All federal grant reports should be documented as being reviewed by a person knowledgeable about the requirements for activities allowed or unallowed for the grant. As such, the Organization’s internal control over this process should ensure all expenditures are reviewed by a person with such knowledge.
Cause: Controls in place are not sufficient to ensure completeness and accuracy of the reports submitted to granting agencies.
Effect: Without proper controls in place, expenditures may not be complete, accurate or allowable under grant
requirements and could result in unallowable federal expenditures reported.
Recommendation: We recommend the Organization retain documentation of a knowledgeable person separate
from the preparer of the reports to review all expenditures that go into the reports prior to submission.