Finding Text
2022-1 Criteria or Specific Requirement - The Uniform Guidance Section 200.303 requires non-Federal entities to establish and maintain effective internal control over the Federal awards 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. Management is responsible for establishing and maintaining processes and internal control over compliance. Processes and internal control should allow management or employees, in the normal course of performing their assigned functions to be knowledgeable about the grant terms and review for compliance with such terms. Condition and Context - While progress has been made, certain processes and internal controls were not wholly sufficient to ensure the accurate recording, matching and monitoring of federal grant revenues and expenditures. Additionally, the processes and internal controls were not wholly sufficient to ensure the accurate reporting of the schedule of expenditures of federal awards. Effect - The lack of sufficient processes and internal controls puts the Organization at risk for misstatement due to error or fraud. In addition, this increases the risk of inaccurate reporting to federal government granting agencies. Cause - Lack of experienced and knowledgeable staff to implement sufficient internal control. Recommendation - The Organization should consider hiring more experienced and knowledgeable accounting staff. We believe that due to the size and complexity of the Organization, more experienced and knowledgeable staff is warranted. Views of Responsible Officials and Planned Corrective Action - Management agrees with the finding and has engaged an external consultant to perform bookkeeping and financial reporting services.