Finding Text
2022 ? 004-Controls Over Reporting Federal Agency: U.S. Department of the Treasury Federal Program Name: Covid-19 Emergency Rental Assistance Assistance Listing Number: 21.023 Federal Award Identification Number: 1505-0266 and 1505-0270 Award Period: September 30, 2021-September 30, 2022, for ERA1 and May 10, 2021 through September 30, 2025 for ERA 2 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: As a condition of receiving federal awards, non-federal entities agree to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal control to provide reasonable assurance of compliance within these requirements. The County management is responsible for establishing and maintaining internal controls over grants. Condition/Context: Auditor selected and tested a statistically valid sample of 5 financial reports and 8 performance reports from the audit period. There was no evidence of review performed on any of the 13 reports. Questioned costs: N/A Cause: During the audit period there was turnover in grant management. Reports that were previously prepared by a knowledgeable member and then reviewed by the HND Manager discontinued to be reviewed after the departure of the HND Manager. There was no assigned replacement for the review process since the original preparer ultimately was promoted into the HND Manager roll. Effect: A lack of review can cause errors to go undetected in the reporting to the grantor. Repeat Finding: No Recommendation: We recommend the County review Government Finance Officers Association's (GFOA) Best Practices for Internal Control for Grants published September 1, 2022, and update internal processes to ensure tasks and review of tasks continue even during periods of staff turnover or vacancies. The County should consider cross-training personnel to allow preparation of certain reports to be prepared and reviewed by separate knowledgeable individuals. Views of responsible officials: There is no disagreement with the audit finding.