Finding Text
Finding 2022-003 Significant deficiency in internal control over compliance related to reporting. Federal Agency: U.S. Department of the Treasury Pass-Through: City of Seattle, Human Services Department Assistance Listing Number: 21.023 Assistance Listing Name: COVID-19 Emergency Rental Assistance Program Award Number: ERA0208, Contract No. OH-2021-02 Criteria Internal controls requirements contained in Title 2 U.S. Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, Subpart D - Post Federal Award Requirements, Section 200.303, Internal Controls, require that a 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. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition/Context The Organization?s internal controls require management to review reports to assure accuracy and completeness of data and information included in the reports. Of the 5 reports we tested, 2 did not have evidence of review. Cause The Organization?s internal controls over review of reports was not consistently applied. Effect Deficiencies in internal controls related to review of reports could result in inaccurate reporting. Questioned Costs None. Repeat Finding This is not a repeat finding. Recommendation We recommend the Organization enforce its policies and procedures over review of reports. Views of Responsible Officials and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.