Finding Text
Criteria or Specific Requirement: 2 CFR 200.303(c) requires the non-Federal entity to evaluate and monitor the non-Federal entity's compliance with statutes, regulations, and the terms and conditions of Federal awards. Condition: Effective internal controls over reporting requirements were not established for review of Form 425. Cause: The lack of effective internal controls over reporting caused errors in the initial preparation of Form 425. Effect or Potential Effect: Improper reporting could result in the federal agency exercising additional scrutiny over activities and possible loss of funding. Repeat Finding: Yes. Recommendation: The Organization should implement controls to monitor compliance with the reporting requirements of federal awards.