Audit 305961

2022-007 Reporting Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of the Treasury Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Award Number and Year: Federal Direct; 2022 Pass-Through Agency: N/A – Direct Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must maintain internal control over federal programs that provides reasonable assurance that the auditee is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. The U.S. Department of the Treasury requires an annual Project and Expenditure Report submitted for Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) that include current period expenditures. The Annual Project and Expenditure Report is required to be submitted to the U.S. Treasury by April 30 of each year. Condition: The County incorrectly reported the full CSLFRF award amount of $5,089,194 as expenditures on the Annual Project and Expenditure Report submitted to the U.S. Department of the Treasury for 2022 when the amount reported should have been $1,232,368. Additionally, the 2022 Annual Project and Expenditure Report was not submitted to the U.S. Treasury by the April 30 due date. The Annual Project and Expenditure Report due in April 2022 was for the reporting period ending March 31, 2022. Questioned Costs: $3,856,826 Context: The County opted to spend the CSLFRF’s award under the Revenue Replacement category, which allows spending on broader types of government services. Effect: Noncompliance with federal reporting requirements. Cause: County staff responsible for completing and submitting the Annual Project and Expenditure Report misinterpreted the guidance and reported planned expenditures versus actual expenditures under the Revenue Replacement category. Recommendation: We recommend the County review the U.S. Department of the Treasury’s guidance and form instructions to ensure it is correctly reporting CSLFRF activity by the required deadline. View of Responsible Official: Concur

2022-007 Reporting Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of the Treasury Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Award Number and Year: Federal Direct; 2022 Pass-Through Agency: N/A – Direct Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must maintain internal control over federal programs that provides reasonable assurance that the auditee is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. The U.S. Department of the Treasury requires an annual Project and Expenditure Report submitted for Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) that include current period expenditures. The Annual Project and Expenditure Report is required to be submitted to the U.S. Treasury by April 30 of each year. Condition: The County incorrectly reported the full CSLFRF award amount of $5,089,194 as expenditures on the Annual Project and Expenditure Report submitted to the U.S. Department of the Treasury for 2022 when the amount reported should have been $1,232,368. Additionally, the 2022 Annual Project and Expenditure Report was not submitted to the U.S. Treasury by the April 30 due date. The Annual Project and Expenditure Report due in April 2022 was for the reporting period ending March 31, 2022. Questioned Costs: $3,856,826 Context: The County opted to spend the CSLFRF’s award under the Revenue Replacement category, which allows spending on broader types of government services. Effect: Noncompliance with federal reporting requirements. Cause: County staff responsible for completing and submitting the Annual Project and Expenditure Report misinterpreted the guidance and reported planned expenditures versus actual expenditures under the Revenue Replacement category. Recommendation: We recommend the County review the U.S. Department of the Treasury’s guidance and form instructions to ensure it is correctly reporting CSLFRF activity by the required deadline. View of Responsible Official: Concur