Information on the Federal Program: Coronavirus State and Local Fiscal Recovery Funds (AL Number 21.027) – U.S. Department of the Treasury
Criteria: 2 CFR 200.302 (b) (1) -The financial management system of each non-federal entity must provide for the identification, in its accounts, of all federal awards received and expended and the federal programs under which they were received. federal program and federal award identification must include, as applicable, the Assistance Listings title and number, federal award identification number and year, name of the federal agency, and name of the pass-through entity, if any.
Condition: Federal funds totaling $138,700 were not identified within the accounts of the University's financial management system. These funds were posted in a payment holding account and were not identifiable as federal funds.
Cause: The internal controls in place to ensure the identification of all federal payments received and expended failed to identify the above funds as federal funds.
Effect: Without further investigation into the holding account, these funds would not have been identifiable within the University's financial management system and would have been excluded from the Schedule of Expenditures of federal Awards.
Recommendation: We recommend the University review the controls in place to identify federal funds and enhance if warranted.
Views of responsible officials and planned corrective actions: The University concurs with the finding. As a result of this finding, the University created a new fund code within their general ledger chart of accounts for the purpose of classifying these funds as federal funds. The University performed the appropriate reclassifying journal entries within their general ledger utilizing the newly created fund code to recognize the $138,700 as federal revenue and expenditures.
130.