Finding Text
Small Business Administration Financial Assistance Listing #59.008
COVID‐19 Disaster Assistance Loans
Preparation of 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 schedule of
expenditures of federal awards (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. There was no documentation of review of the schedule
retained and the schedule required adjustments.
Cause: The Organization had turnover and limited staffing available.
Effect: There is a reasonable possibility that the Organization would not be able to draft the
schedule that is correct without the assistance of auditors.
Questioned Costs: None reported
Context/Sampling: Sampling was not used.
Repeat Finding from Prior Year(s): Yes
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 of expenditures of federal awards and the internal
controls that impact financial reporting.
Views of Responsible Officials: Management agrees with the finding.