Finding Text
FINDING 2022‐002 Significant Deficiency in Internal Control over Reporting
Federal Agency: Department of Treasury
Pass through Grantor: Multiple
Federal Program(s): COVID‐19 Coronavirus Relief Fund and COVID‐19 Coronavirus State and Local Fiscal
Recovery Funds
Assistance Listing Number(s): 21.019 and 21.027
Criteria: As part of its compliance requirements management should submit complete and accurate reporting packages
or reports in accordance with agency requirements. Management should design controls to ensure appropriate
preparation and reviews of such reporting requirements.
Condition: As part of compliance and control over compliance testing for ALN 21.019 and ALN 21.027, we identified
that the Salvation Army did not retain documentation indicating that reports had been reviewed prior to submitting to
the granting agency(ies).
Cause: A control gap exists over the retention and review of the reports. The Division did not retain documentation to
support whether the report had been reviewed prior to submission.
Effect: The Division could have submitted a report that is incomplete or contains inaccurate information.
Questioned Costs: None.
Context or Perspective: For ALN 21.019 our population was two (2) reports of which we selected 100% for testing, all of
which did not have documentation evidencing review prior to submission to the grantor. For ALN 21.027 our population
was 2 instances for financial reports and 34 instances for performance reports, we selected 2 instances and 14
instances, respectively, for testing, none of which had documentation evidencing review prior to submission to the
grantor.
Recommendation: Division management should enhance their control procedures such that the appropriate individuals
are aware that review of reports should be documented with either electronic or manual signature prior to submission
to the granting agency(ies).
Views of Responsible Officials: See Corrective Action Plan.