Finding Text
Finding #2022-001: Reporting Federal Program: U.S. Department of Commerce, Regional Fishery Management Councils CFDA 11.441 Criteria: WPRFMC is required to submit Form SF-425 (Federal Financial Report) for each of its federal awards on a semi-annual basis for the periods ending March 31 and September 30. These reports are due no later than 30 calendar days following the end of each reporting period. Internal controls should provide for these reports to contain accurate, current, and complete financial results (2 CFR ?200.302(b)(2)). Condition: For 8 of 12 semi-annual Federal Financial Reports tested, the reported cash disbursements did not reconcile to the expenditures recorded in the general ledger. Unreconciled differences ranged from $30 to $104,174 and totaled approximately $199,000. Cause: Internal controls over the recording and classification of expenditures in the general ledger were inadequate to permit the accurate reporting of expenditures within the required 30-day period. Effect or Potential Effect: Financial reports provided to the Department of Commerce could be materially misstated. Identification as a Repeat Finding: See Finding #2021-002 included in the Summary Schedule of Prior Audit Findings. Recommendation: We recommend WPRFMC continue to improve the necessary internal controls to ensure expenditures are timely and accurately recorded and classified in the general ledger. These controls should provide for the timely reconciliation of cash disbursements reported on the Federal Financial Reports to expenditures recorded for each federal award in the general ledger.