Audit 366857

Finding 2024-002: Significant Deficiency - Reporting Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Agency: U.S. Department of the Treasury Federal Award Identification Number: N/A Federal Award Year: December 31, 2024 Repeat of Prior Year Finding 2023-002 Criteria: Based on 42 USC 802 and 803 as implemented by the Treasury's Interim Final Rule and Final Rule at 31 CFR Part 35, recipients of the Coronavirus State and Local Fiscal Recovery Funds are required to submit special reporting on an annual basis. This reporting is to include current period obligations, cumulative obligations, current period expenditures and cumulative expenditures for each project. Condition: The annual report understated current period expenditures and total cumulative expenditures. Questioned Costs: Not applicable. Context: There was one report required during the current year and the data reported included erroneously understated current period expenditures and total cumulative expenditures. Effect: Users of the annual report may incorrectly believe that current period expenditures and total cumulative expenditures were lower than what the County actually expended during the reporting period and cumulatively over the life of the program. Cause: Similar errors were noted in the annual report that was filed during the year ended December 31, 2023. Those errors were not identified until the audit, which was after the annual report was filed during the year ended December 31, 2024. The information in the annual report filed during the year ended December 31, 2023 was not able to be corrected prior to filing the annual report during the year ended December 31, 2024. Recommendation: We recommend that the county implement proper review of the annual reporting process. Someone other than the preparer of the report should provide adequate review prior to finalizing the report. This review should include verification that reported current period expenditure totals agree to the underlying general ledger detail as of the report date. These procedures should be documented and retained. Management's Response: The differences in the reporting are a cumulative effect from incorrect reporting from March 2023. The Administrator was unable to make changes to the 2023 report, so that affected the 2024 report.