FORT WAYNE ZOOLOGICAL SOCIETY, INC.Non-Profit

2021-001 Shuttered Venue Operators Grant ? Assistance Listing No. 59.075 Significant Deficiency in Internal Control over Compliance ? Appropriate Internal Control Structure Related to Compliance Requirements Criteria: 2 CFR 200.303 includes requirements related to internal controls for federal award programs, including that the entity must, among other things, ?establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.? These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)?. Condition and Context: Our understanding is the Zoo dedicated individuals and resources from the Finance and Development department to understand the compliance requirements applicable to the Shuttered Venue Operators Grant (SVOG) and oversee the use of the funding received. These individuals were responsible for monitoring compliance with SVOG and Uniform Guidance compliance requirements. However, we noted the internal controls over compliance were not adequately documented to demonstrate the approval of expenditures of SVOG funding by the appropriate individuals. Cause and Effect: The lack of adequately documented internal control over compliance related to approval of SVOG expenditures did not result in any identified noncompliance in 2021. However, the formalized documentation of the control process is considered critical for an appropriate control environment for internal controls over compliance. Recommendation: The Zoo should retain appropriate documentation surrounding the internal control process to demonstrate appropriate internal controls over compliance. Views of Responsible Officials and Planned Corrective Action: We agree with the recommendation, and it was implemented effective August 24, 2022.