Finding Text
Criteria – Federal regulations and grant terms and conditions of the programs require annual fiscal reports be submitted to the awarding agencies. In accordance with Uniform Guidance 2 CFR 200.303 the Health Board should have internal controls established to ensure accuracy of information reported and ensure compliance with reporting requirements. Additionally, good internal controls require that an individual who did not prepare the report should review the report for accuracy prior to submission.
Condition and Context – The annual SF-425 reports required under each program were submitted, but we noted no evidence of secondary review by an individual other than the preparer. As a result, the submitted SF-425 reports misreported total program expenditures for the period and the reports were ultimately rejected by the funding agencies causing the Health Board’s accounting department to correct and re-submit SF-425 reports subsequent to the period under audit.
Cause – The Health Board does not have sufficient internal controls over their grant reporting process to ensure proper review of report prior to submission to ensure all reported information is accurate.
Effect – There is an increased likelihood of errors in the information reported to federal agencies and ultimately an increased likelihood of noncompliance over reporting requirements.
Questioned Costs – There were no questioned costs associated with this finding.
Repeat Finding – This is not a repeat finding.
Recommendation – We recommend the Health Board improve the controls over the reporting function, which includes the documentation, review, and approval of all required reports.
Views of responsible officials – Management agrees with the auditors' findings and will implement the corrective action plan to address the issue identified.