Finding Text
U.S. Department of the Treasury Passed through State of Arizona, Maricopa County (Maricopa
County), Federal Financial Assistance Listing #21.027, PE386182260A4 2022, Coronavirus State
and Local Fiscal Recovery Funds
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 controls over the federal awards that provide assurance that the entity is managing the
federal awards in compliance with federal statutes, regulations, and the conditions of the
federal award. 2 CFR 200.327 and 2 CFR 200.328 require the auditee to collect financial
information and monitor its activities under federal awards to assure compliance with applicable
federal requirements, to assure performance expectations are being achieved, and to report
these items in accordance with program requirements. The Foundation is required to submit
quarterly performance reports. Reports should be prepared complete, accurate, and in
accordance with the required basis for reporting, submitted timely with the terms of the grant
award, and reviewed by an individual prior to submission to ensure accuracy.
Condition: Although the reports were reviewed in accordance with internal controls, the review
process did not properly identify on two out of the two reports tested that they were submitted
with inaccurate information. Supporting documentation for the reports submitted used
budgeted expensed amounts, not actual, and the budgeted expensed amounts for the period
did not agree to amounts reported.
Cause: The Organization has limited staffing and did not have proper controls in place relating to
review of information included in reports to ensure completeness and accuracy.
Effect: Inaccurate information may be provided to the grantor regarding performance of the
Foundation.
Questioned Costs: None reported.
Context: A nonstatistical sample of 2 out of 4 reports submitted were selected for testing.
Repeat Finding from Prior Years: No
Recommendation: We recommend the Foundation’s management routinely review and consider
modifications that would strengthen the internal controls surrounding the reporting process,
recordkeeping, and the management thereof. Specifically, management should ensure that
financial records are such to provide actual amounts of grant expenditures incurred for
reporting purposes at required reporting dates, and that the review control ensures that reports
provided to grantors agree with internal financial records.
Views of Responsible Officials: Management agrees with the finding.