Finding Text
2022-002 INTERNAL CONTROLS OVER REPORTING Federal Program Information: Federal Agency and Program Name: U.S. Department of Commerce Economic Adjustment Assistance Grant Number: 01-79-14958 Federal Assistance Listing Number COVID-19 11.307 Criteria: 2 CFR 200.303 requires that a non-federal entity must ?(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States and the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? Condition: The Authority submitted the periodic performance reports required under the terms of the award without going through an appropriate review and approval process. Questioned Costs: Not Applicable Context: Total federal expenditures for the Economic Adjustment Assistance program were $924,647 for the year ended June 30, 2022. Cause: The Authority does not have adequate internal controls and policies and procedures in place to ensure all reports are reviewed for accuracy prior to initial submission. Effect: The Authority may not be in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Information included in the required reports may be inaccurate. Recommendation: We recommend that the Authority implement controls to ensure that reports are properly reviewed for accuracy prior to initial submission. Views of Responsible Officials: Management acknowledges the finding. See corrective action plan.