Finding Text
2023-006 – Reporting
Federal agency: U.S. Treasury
Federal program title: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Pass-Through Agency: Champaign County, Illinois
Pass-Through Number(s): None Reported
Award Period: 3/1/22-12/31/24
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or Specific Requirement: CFR § 200.329 indicates that the non-federal entity is responsible for oversight of the operations of the Federal award supported activities. The non-Federal entity must monitor its activities under Federal awards to assure compliance with applicable Federal requirements and performance expectations are being achieved.
Condition: The Organization did not have an independent review occurring where it could maintain supporting documentation showing an independent review and approval of the H3 grants was occurring prior to the reports being filed.
Questioned costs: N/A
Context: For 2 of 8 reports selected for testing did not have an independent review occurring so there could be evidence of an independent review occurring prior to the report being filed.
Cause: Error by management in having the reports reviewed by someone other than the preparer.
Effect: Incorrect or inaccurate reports could be filed if they are not reviewed prior to being filed.
Repeat Finding: No
Recommendation: We recommend the Organization revise its internal controls to require an independent review of financial and performance reports prior to the reports being filed. The Organization should also ensure appropriate supporting documentation is maintained which shows the person who completed the review as well as the date the review was completed.
Views of responsible officials: Company-wide reports are submitted monthly to the Board of Directors for approval. Reports that are submitted are separated by grant, so that the Board of Directors can see the activity in each grant for each month during the fiscal year. The reports submitted to the funders by Marlon Mitchell are taken from the financial reports that are approved by the Board of Directors. In addition, Marlon does not enter the financial information, nor does he prepare the monthly reports submitted to the Board. He serves as a fourth set of eyes on the information before the reports are submitted to the funders. Khayriyah Mitchell enters all of the revenue and expenditures into the accounting system, Shanelle Herman reconciles the bank and credit card accounts and runs the reports for the Board of Directors, the Board reviews and approves the financial statements, and Marlon Mitchell uses the approved financial information to create the reports to the grant funding agencies.