Audit 395792

U.S Department of Treasury Federal Financial Assistance Listing 21.027 COVID-19 State and Local Fiscal Recovery Funds (SLFRF) Reporting Significant Deficiency in Internal Control over Compliance Criteria: The OMB Compliance Supplement states that Non-Federal entities may be required to submit performance and special reports at least annually but not more frequent than quarterly, using an authorized form or format authorized by the OMB. Specifically, the County is required to submit quarterly Project & Expenditure (P&E) reports (performance reports) on its Direct Award SLFRF funding. Condition: Inaccurate reporting procedures were noted in 2 quarter’s performance reports. Cause: The County’s controls surrounding the P&E reporting process failed to accurately report cumulative expenditures in 2 quarter’s performance reports due to a lack of reconciliation to their internal project tracking sheet and review before submission. Effect: A lack of review and subsequently reporting incorrect amounts on performance reports could result in material noncompliance and overreporting of expenditures to the Treasury. Questioned Costs: None Context: A nonstatistical sample of 2 of the required 4 P&E reports were initially tested. Errors were noted in 1 project, in each report. The sample was expanded to include the other 2 reports, and we noted no additional errors in those reports. Report Finding from Prior Year(s): No Recommendation: We recommend the County improve controls surrounding the performance of reconciliation of project expenditures reported and internal records. Also, we recommend an improved overall review process by the Grants Manager to ensure proper amounts are being reported and correction and re-issuance of reports is not needed. Views of Responsible Officials: Management agrees with the finding.