Finding Text
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the Organization is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization did have two individuals involved in the reporting process, but did not have documented controls over the preparation and corresponding review of the required reporting during the period. Cause: The Organization has limited staffing and did not have proper controls in place relating to review of the prepared report. Effect: There is a reasonable possibility that the Organization could submit inaccurate information. Questioned Costs: None reported. Context: Sampling was not used. One key line item was tested. Repeat Finding from Prior Years: No Recommendation: We recommend the Organization implement a control process which includes a secondary review and approval of the required reports to be submitted to the federal agency. Views of Responsible Officials: Management agrees with the finding.