DESCHUTES LAND TRUSTNon-Profit

2024-001 Finding – Federal Award Type: Financial Reporting – Material Weakness in Internal Control over Compliance. Identification of Federal Program: AL Number: 15.507 WaterSMART Criteria / Requirement: 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition / Context: It was noted during the audit that there were insufficient internal controls over financial reports submitted, as there was not sufficient documentation of review of the financial report prior to the submission. Cause: Procedures were not in place to ensure that Deschutes Land Trust is maintaining adequate internal controls over compliance in regards to financial reporting requirements. Key duties and functions are not segregated among organization personnel and internal control policies and procedures are inadequate to properly define the roles and responsibilities of personnel performing key functions. Effect: Failure to maintain sufficient internal controls over financial reporting related to federal grants may result in inaccurate reporting and/or non‐compliance with the provisions of applicable requirements. Questioned Costs: None. Recommendation: The Organization should establish written policies and procedures regarding financial reporting over federal grants, which include proper segregation of duties.