Finding Text
2023-002 Federal Agency: U.S. Department of the Treasury
Program/Cluster: COVID-19 Coronavirus State and Local Fiscal Recovery Funds
Federal Financial Assistance Listing Number: 21.027
Pass-through: N/A
Award No. and Year: N/A, 2022
Compliance Requirement: Reporting
Type of Finding: Significant Deficiency 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
review of required reports.
Condition:
We identified 1 instance in which the City did not document the review of the annual Project
and Expenditure Report prior to submission.
Cause:
The report submission portal does not require an approval by an individual other than the
individual that entered the report data. The City’s procedures did not include documenting the
review by an individual other than the preparer.
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:
100% of the annual Project and Expenditure Reports were selected for testing.
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 and Planned Corrective Action:
Management concurs with the finding. See separate corrective action plan.