Audit 35510

Federal Agency: Department of Treasury Federal Program Title and ALM: Coronavirus State and Local Fiscal Recovery Funds (21.027) Award Period: March 3, 2021 ? December 31, 2024, liquidated by December 31, 2026 Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement: Recipients may use CSLFRF payments for any eligible expenses subject to the restrictions set forth in sections 602 and 603 of the Social Security Act as added by section 9901 of the American Rescue Plan Act of 2021 (codified as 42 USC 802 and 42 USC 803 respectively). Recipients may use payments from CSLFRF to: - Support public health expenditures, by funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff; - Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector; - Replace lost public sector revenue to provide government services; recipients may use this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic. - Provide premium pay for essential workers, offering additional support to those who have borne and will bear the greatest health risks because of their service in critical infrastructure sectors; and - Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and to expand access to broadband internet. Under the Final Rule, recipients can elect a one-time ?standard allowance? of $10 million (not to exceed the recipient?s award amount) to spend on the ?provision of government services? during the period of performance. Alternatively, recipients can calculate lost revenue based on the formula provided in the Final Rule to determine the limit for the amount of CSLFRF funds that can be used for the ?provision of government services.? Recipients should provide auditors with evidence that they meet the requirements to elect the standard allowance or provide auditors with evidence supporting their revenue loss calculation. Questioned Costs: $2,260 Condition/Context: One out of sixty expenditures tested was not for an allowable activity. Cause: The County did not have sufficient internal controls in place to adequately review allowable activity and costs being charged to the grant. Effect: The County charged a non-allowable activity/cost to the grant. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the County strengthen and enforce its internal controls to ensure only allowable expenditures are charged to the grant. Views of responsible officials: Management agrees with the finding.

Federal Agency: Department of Treasury Federal Program Title and ALM: Coronavirus State and Local Fiscal Recovery Funds (21.027) Award Period: March 3, 2021 ? December 31, 2024, liquidated by December 31, 2026 Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement: Recipients may use CSLFRF payments for any eligible expenses subject to the restrictions set forth in sections 602 and 603 of the Social Security Act as added by section 9901 of the American Rescue Plan Act of 2021 (codified as 42 USC 802 and 42 USC 803 respectively). Recipients may use payments from CSLFRF to: - Support public health expenditures, by funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff; - Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector; - Replace lost public sector revenue to provide government services; recipients may use this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic. - Provide premium pay for essential workers, offering additional support to those who have borne and will bear the greatest health risks because of their service in critical infrastructure sectors; and - Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and to expand access to broadband internet. Under the Final Rule, recipients can elect a one-time ?standard allowance? of $10 million (not to exceed the recipient?s award amount) to spend on the ?provision of government services? during the period of performance. Alternatively, recipients can calculate lost revenue based on the formula provided in the Final Rule to determine the limit for the amount of CSLFRF funds that can be used for the ?provision of government services.? Recipients should provide auditors with evidence that they meet the requirements to elect the standard allowance or provide auditors with evidence supporting their revenue loss calculation. Questioned Costs: $2,260 Condition/Context: One out of sixty expenditures tested was not for an allowable activity. Cause: The County did not have sufficient internal controls in place to adequately review allowable activity and costs being charged to the grant. Effect: The County charged a non-allowable activity/cost to the grant. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the County strengthen and enforce its internal controls to ensure only allowable expenditures are charged to the grant. Views of responsible officials: Management agrees with the finding.