Finding Text
FINDING 2022‐003 Material Weakness in Internal Controls and Compliance over Reporting, Material
Noncompliance
Federal Agency: Department of Treasury
Pass through Grantor: Multiple
Federal Program(s): COVID‐19 Coronavirus Relief Fund
Assistance Listing Number(s): 21.019
Criteria: As per the grant agreement the Division is to submit three specific reports to the granting agency related to
the purchase of equipment, an annual inventory report, and a capital improvement request form.
Condition: During our testing it was determined that the Division did not prepare or submit the required reports as
required per the grant agreement.
Cause: The Division experienced significant turnover during the year which resulted in oversight in preparation and
submission of the reports.
Effect: Reporting requirement are an integral part of compliance with the program. If a report is delinquent the grantor
may withhold funding or suspend the contract.
Questioned Costs: None.
Context or Perspective: The Division completed 0 of 3 required reports in the current year. As the Division utilized
funding to purchase equipment and vehicles and complete renovations, all three of the reports should have been
completed and submitted.
Recommendation: Division management should review all compliance requirements applicable to grants and ensure
that the requirements are being met, and that reports are submitted on a timely basis.
Views of Responsible Officials: See Corrective Action Plan.