Finding Text
Condition: During our testing of the reporting and cash management compliance requirements we reviewed a sample of reports and federal draw requests and noted no secondary review of the reports was conducted.
Criteria: A non-federal entity receiving federal awards must establish and maintain internal controls over the federal awards that provides reasonable assurance that the non-federal entity is managing the awards in compliance with federal statutes, regulations, and the terms of the federal awards.
Cause: Due to staffing levels, no review of reports by secondary reviewer were in place during the year.
Effect: As a result of the condition noted above, internal controls over reporting and cash management were deemed to be ineffective to prevent or detect noncompliance with compliance requirements over federal awards.
Recommendation: We recommend internal control procedures be reviewed by management and a secondary review of all submitted reports be performed by an employee, separate from the preparer and knowledgeable of compliance requirements, for completeness and accuracy, including comparing to source documentation and any reconciliations between source data and final reporting.