Finding Text
Federal Agency: U.S. Department of Homeland Security
Program/Cluster: Staffing for Adequate Fire & Emergency Response
Federal Assistance Listing Number: 97.083
Pass-through: N/A
Award No. and Year: EMW-2020-FF-00816, 2020
Compliance Requirement: Reporting
Type of Finding: Material Weakness in Internal Control over Compliance
Criteria:
Per 2 CFR 200.303, 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 the terms and conditions of the Federal award. This includes internal controls over maintaining records of the preparer and approver of required reports.
Condition:
We identified four (4) instances in which the City did not retain evidence to document the individual who reviewed the required reports prior to submission. This consisted of two (2) financial reports and two (2) performance reports.
Cause:
The City’s procedures did not include documenting the review of the reports prior to submission.
Effect:
Ineffective controls over this area of compliance could result in reports that are inaccurate or incomplete being submitted to the granting agency.
Questioned Costs:
No questioned costs were identified as a result of our procedures.
Context/Sampling:
All semi-annual financial reports and semi-annual performance report were selected for testing. The population consisted of two (2) financial reports and two (2) performance reports. All reports were selected for testwork.
Repeat Finding from Prior Year(s):
No.
Recommendation:
We recommend that the City revise its procedures to include evidence to document the individual who reviewed required reports prior to submission.
Views of Responsible Officials:
Management concurs with the finding. See separate corrective action plan.