Finding Text
Finding 2022-002 - Material Weakness (same as Finding 2022-001) Criteria - To ensure proper internal controls over its federal programs, the accounting system should provide for the identification of federal awards received and expended by program. Condition - It is difficult to identify federal program activity for presentation in the Partnership?s schedule of expenditures of federal awards. Effect - The basic accounting package cannot produce reports for federal program activity analysis. Significant reconcilement from the Partnership?s basic accounting records is required to prepare the Partnership?s schedule of expenditures of federal awards. This reconcilement is subject to human error and could result in an error in the preparation of the Partnership?s schedule of expenditures of federal awards. Cause - The accounting practices for the recording of federal program activity in the books of original entry are no longer sufficient to track the multiple grants that the Partnership now receives. The Partnership has experienced significant growth in the number and size of funding sources. Recommendation - The Partnership should modify its accounting practices to easily produce reports for federal program analysis and preparation of the Partnership?s schedule of expenditures of federal awards. Views of responsible officials and planned corrective actions - The Partnership agrees with the finding. The Partnership will implement procedures to identify and record all federal expenditures.