Finding 572097 (2024-003)

Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP4374, 2021 Pass-Through Agency: Iowa Economic Development Authority Pass-Through Number: 23-INIA-023 Award Period: September 14, 2022 – September 30, 2026 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award Section 200.303 requires entities to establish and maintain effective internal controls over Federal Awards. Condition: During our testing we noted internal controls over expenditures were not properly followed. Questioned Costs: None Context: 2 of the 25 expenditures selected for testing did not have documented review. Cause: Project Manager was not in place from July 2023 – August 2023 to properly review pay applications. Effect: The auditor noted no instances of noncompliance with the allowability of costs or support for costs; the lack of internal controls over expenditures provides an opportunity for noncompliance. Repeat Finding: Not a repeat finding. Recommendation: We recommend the Organization ensure proper review and approval over expenditures. Views of Responsible Officials: There is no disagreement with the finding.