Finding Text
2022-002 Department of Agriculture Federal Financial Assistance Listing/CFDA #10.766 Communities Facilities Loans and Grants Cluster Preparation of the Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance - Other Criteria: Proper controls over financial reporting include a system designed to prepare the schedule of expenditures of federal awards and the accompanying notes to the schedule of expenditures of federal awards. Condition: The Center does not have an internal control system designed to provide for the preparation of the schedule of expenditures of federal awards. As auditors, we were requested to assist with the preparation of the schedule of expenditures of federal awards. Cause: Auditor assistance with preparation of the schedule of expenditures of federal awards is not unusual in an organization the size of the Center. Effect: There is a reasonable possibility that the Center would not be able to draft a complete and accurate schedule of expenditures of federal awards. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes, 2021-002 Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, it is important that the Center is aware of this condition for financial reporting requirements relating to the Center?s schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.