Finding Text
2023-003 Department of Agriculture
Federal Financial Assistance Listing #10.766
Communities Facilities Loans and Grants Cluster
Preparation of Consolidated 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 consolidated 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 the preparation of
the schedule and notes to the schedule. As auditors, we were requested to assist with the preparation of the
schedule and notes to the schedule.
Cause: Auditor assistance with the preparation of the schedule is not unusual as the schedule has unique and
specialized requirements and preparation is only required when the Organizationl meets a specific threshold of
federal expenditures.
Effect: There is a reasonable possibility that the Organization would not be able to draft the schedule and notes
to the schedule that are correct without the assistance of the auditors.
Questioned Costs: None reported
Context/Sampling: Sampling was not used.
Repeat Finding from Prior Year: Yes, combined with preparation of financial statements. Prior year finding 2022-
001.
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 the internal controls that impact financial reporting.
Views of Responsible Officials: Management agrees with the finding.