Finding Text
Finding Number 2022-008: Reporting (Significant Deficiency over Internal Control and Instances of Noncompliance – Reporting) FALN Number 16.575 U.S. Department of Justice, Office of Victims of Crime – Crime Victim Assistance
Criteria: 2022 Compliance Supplement and 2 CFR 200.303(a) stated that the 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 terms and conditions of the federal award.
Condition/Context: As a result of our audit procedures to evaluate the summary schedule of prior audit findings, we noted 1 sample of untimely financial reporting submitting to the grantor. The financial report was for the quarter ended 3/31/2022 with a due date of 30 days after the reporting period; however, the report was submitted on 6/13/2022. We also noted 1 sample of performance report for the quarter ended 12/31/2021 that did not have clear evidence of preparer and reviewer of the report.
Repeat Finding from Prior Year(s): Yes, Finding Number 2021-006
Cause and Effect: The Health System did not have proper controls in place to ensure the performance reports are prepared and reviewed by separate individuals with evidence of review documented and retained, which could lead to inaccurate information being reported. In addition, the Health System did not have proper controls in place to ensure financial reports are submitted timely with underlying support properly documented, which resulted in untimely reporting filing.
Questioned Cost: None
Recommendation: We recommend management implement policies and procedures to ensure performance reports are prepared and reviewed by separate individuals with evidence of review documented and that financial reports are submitted timely with underlying support properly documented.
Views of Responsible Officials and Planned Corrective Action: Management agrees with finding. The Health System will review and modify policies and procedures over the program to ensure management implement policies and procedures to ensure performance reports are prepared and reviewed by separate individuals with evidence of review documented and that financial reports are submitted timely.