Audit 410959

2025-001: Internal Control Over Reporting Requirements Federal Grantor: U.S. Department of the Treasury Pass-Through Grantor: N/A Federal Assistance Listing Number: 21.027 Program Title: Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Pass-through Entity Identifying Number: N/A Award Year: 2025 Questioned Costs: None Criteria: Under the requirements for the SLFRF Project and Expenditure Report published by the U.S. Department of the Treasury, the County should enter the total dollar value of current reporting period expenditures for each project. This line item is identified as a key line item containing critical information in the OMB Compliance Supplement. Condition: We compared the current period and cumulative expenditures reported for each project on the March 2025 Project and Expenditure Report to the expenditures in the COVID-19 Fund for the same period. Below is a summary of the variances noted in the cumulative expenditures: Current period expenditures reported on project SOEB-65625 and RB-Barry agreed to the accounting records. Current period expenditures reported on project BCHealth were $1,510,031 per the Project and Expenditure Report, but were $888,784 per the accounting records, a variance of $621,247. Cause: The County did not have a documented reconciliation and independent review process to ensure that current-period and cumulative expenditures reported in the Treasury portal agreed with the County’s accounting records before the report was certified and submitted. Effect: Proper internal controls over the reporting requirement help to ensure that the reporting required under guidance from the U.S. Department of the Treasury is accurate and the correct current period and cumulative expenditures are reported to the federal government. Recommendation: We recommend that the County implement procedures to ensure that future grant reports are completed accurately and in agreement with the County’s accounting records.