Finding Text
2022-003 Department of Agriculture Federal Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control Over Compliance - Other Criteria Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (the Schedule) and accompanying notes to the Schedule. Condition The Organization does not have an internal control system designed to provide for a complete and accurate Schedule being audited. We were requested to assist in drafting the Schedule. Cause Auditor assistance with preparation of the Schedule is not unusual, as the Schedule as unique and specialized requirements and preparation is only required when the Organization meets a specified threshold of federal expenditures. Effect There is a reasonable possibility that the Organization would not be able to draft the Schedule that is correct without assistance of the auditors. Questioned Costs None reported. Context Sampling was not used. Repeat Finding from Prior Years No Recommendation While we recognize that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the Organization?s Schedule and internal controls that impact financial reporting. View of Responsible Officials Management agrees with the finding.