Finding Text
2022-005 (2019-013) REPORTING ? Repeated and Modified Federal Agency: U.S. Department of Homeland Security/FEMA Federal Program Title & Assistance Listing Number: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) - 97.036 Emergency Management Performance Grants ? 97.042 Fire Management Assistance Grants ? 97.046 Pre-Disaster Mitigation ? 97.047 Homeland Security Grant Program ? 97.067 Award Period: Various Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance (Modified Opinion) Questioned Costs: Unknown Condition: We noted the Department was not in compliance with requirements related to the reporting of grants. ? Assistance Listing 97.036 o The Department did not complete the recipient share section of the federal financial reports for 2 out of 10 reports tested. ? Assistance Listing 97.042 o The Department did not complete the recipient share section of the federal financial reports for 4 out of 9 reports tested. o 2 out of 9 federal financial reports tested were not submitted timely. ? Assistance Listing 97.046 o 2 out of 6 federal financial reports tested were not provided to us. ? Assistance Listing 97.047 o The Department did not complete the recipient share section of the federal financial reports for 3 out of 6 reports tested. ? Assistance Listing 97.067 o All but one Performance Progress Report was not submitted for FY22. Management?s Progress for Repeated Findings: Management failed to implement adequate controls to resolve the finding from the prior years. Criteria: According to ?200.302 Financial management of 2 CFR Part 200, the State?s, and the other non-Federal entity?s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions. Further, the financial management system of each non-Federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements. According to ?200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effect: The auditor noted instances of noncompliance. Noncompliance results in delayed reimbursement of eligible federal expenditures. Potential loss of federal funding. Cause: The Department lacks established internal controls and procedures over financial grant management to ensure submitted reports are complete, agree to supporting spreadsheets, submitted timely, and properly maintained in the files of the Department.