Finding 573442 (2024-002)

Department of Homeland Security, State of Iowa Department of Homeland Security and Emergency Management, 97.039, 4483DRIAP00000005, 2024 Hazard Mitigation Grant Program Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: In two of two quarterly reports tested, we noted the Cooperative improperly reported the federal, state, and local shares incurred during the reporting period. Cause: The Cooperative’s independent review process over the quarterly performance reports did not identify the improperly excluded expenditures on the report. Effect: Lack of compliance with designed internal controls over reporting could result in the Cooperative reporting incorrect or incomplete information. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 2 out of 4 quarterly performance reports. Repeat Finding from Prior Year: No Recommendation: We recommend the Cooperative review internal control procedures over reporting to ensure reported amounts agree to supporting documentation including a reconciliation to the general ledger. In addition, we suggest the Cooperative implement a formal approval process and retain documentation to support evidence of the review. Views of Responsible Officials: Management agrees with the finding.