Finding Text
Federal Program:
97.036 COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters)
Criteria or specific requirement (including statutory, regulatory or other citation):
Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal
entity must: (a) 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.
These internal controls should be in compliance with guidance in “Standards for Internal Control
in the Federal Government” issued by the Comptroller General of the United States or the “Internal
Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO).
Condition:
Management implemented an internal control over the review and approval of a sample of FEMA
expenditures during the fiscal year for compliance with activities allowed or Unallowed, allowable
Costs/Cost principles. However, management did not consistently maintain evidence of the control
being performed.
Context:
We selected 40 expenditures for testing totaling $62,863. Of the 40 expenditures, 4 expenditures
totaling $28,240 did not have evidence of review and approval. Total FEMA expenditures reported
on schedule of expenditures of federal awards are $1,675,897 for the year ended August 31, 2023.
Effect:
Unallowable expenses could be charged to the FEMA program.
Cause:
Management’s internal control over the review and approval FEMA expenses for compliance with
activities allowed or unallowed, allowable Costs/Cost principles requirements was not consistently
documented.
Identification as a repeat finding, if applicable:
Not Applicable.
Recommendation:
Management should reassess its internal controls over the review and approval of FEMA expenses
to ensure documentation is retained to evidence the review and approval to support allowability of
expenses.
Views of responsible officials and planned corrective actions:
Management agrees with the finding and will develop a plan to correct the finding.