Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program Title: Child Care and Development Block Grant
Assistance Listing Number: 93.575
Award Period: July 1, 2020 to June 30, 2021
Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter
Criteria: Financial reporting requirements are identified in 2 CFR section 200.328. Monitoring and reporting program performance requirements are identified in 2 CFR section 200.329. Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303.
Condition: 1) There was no evidence of date of timely submission for 11 reports tested; 2) There was no evidence of review for five reports tested; 3) Five reports tested did not tie to the underlying support by an immaterial amount.
Context: There was a total of 28 financial reports and four performance reports.
Questioned Costs: N/A
Cause: Internal controls surrounding reporting were not properly designed and implemented and an audit trail for timely submission and approval of reports was not maintained.
Effect: The lack of evidence for audit trail and lack of effective internal controls over reporting requirements provides an opportunity for noncompliance and errors.
Repeat Finding: N/A
Recommendation: We recommend that the Organization design, implement, and monitor internal controls over reporting as well as maintain source documentation to support amounts reported.
Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.