Finding Text
2022-004 Department of Treasury Federal Financial Assistance Listing 21.024, Award 21RRP056335 COVID-19 Community Development Financial Institutions Rapid Response Program (CDFI RRP) Reporting Significant Deficiency in Internal Control over Compliance Criteria : CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: There was no formal documentation of review prior to submission for two reports selected for testing. Cause: Meda has designed internal controls over these areas; however, the controls were not formally documented. Effect: Failure to perform an independent review of reporting could result in a reasonable possibility that Meda would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported Context: Three reporting submissions out of six total reports were selected for testing for the program. Repeat Finding From Prior Years: No Recommendation: We recommend the procedures related to reporting be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with the finding.