Finding 964180 (2023-005)

2023-005: Reporting (Significant Deficiency) Criteria: 2 CFR 200.303 requires a non-Federal entity to establish and maintain effective internal control over a 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, including reliability of reporting for internal and external use. Condition/context: During the completion of the fiscal year 2021 audit, it was identified that the Authority did not have a control system in place that allows for the independent review of the SF-425 financial reports. In January 2022, the Authority established such a control system. However, the Authority has not maintained supporting documentation of the independent review of the reports. Cause: The Authority did not maintain documentation to demonstrate that independent reviews of the reports were performed during the year. Effect: If the Authority does not complete an independent review of its financial reports prior to submission, it is possible that the Authority could submit inaccurate or incomplete information to the U.S. Department of Energy. Questioned costs: $0 Identification as a repeat finding: Yes; see prior-year finding 2022-006. Recommendation: As the Authority has designed a control system to ensure the independent review of the SF-425 financial reports, we recommend that compliance with the established control system be formally documented. Views of responsible officials and planned corrective actions: Management concurs with the finding. See Exhibit I.