Audit 44930

2022-04 ? Expenditure Estimates Charged to Federal Programs Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles, and Reporting) Program. COVID-19 - State and Local Fiscal Recovery Funds (CSLFRF); U.S. Department of Treasury; Assistance Listing Number 21.027 Criteria. A recipient of federal awards is expected to charge costs to the program that represent the actual amounts expended, rather than an estimate of costs incurred. Condition. Health insurance and workers compensation expenditures charged to the program were based on an estimate of the claims related to COVID-19 incurred, rather than the actual amount of claims that were paid out. Cause. This condition appears to have been the result of the County charging costs to federal programs that were not properly supported using actual amounts incurred. Effect. As a result of this condition, the County was exposed to an increased risk that costs charged to the grant program were not fully compliant with the applicable grant requirements. Questioned Costs. No costs were required to be questioned as a result of this finding, inasmuch as the County recorded an adjustment to correct the expenditures. Recommendation. We recommend that the County implement a process to ensure that only actual expenditures incurred are charged to federal programs. View of Responsible Officials. The County will continue to utilize, and not deviate from, existing procedures that rely on the reporting of actual expenditures for all federal awards. The use of estimates was utilized in one program, the American Rescue Plan, based on management's misinterpretation of interim guidance. Responsible Official. Connie Sobie, Controller/Administrator Estimated Completion Date. September 30, 2023.

2022-04 ? Expenditure Estimates Charged to Federal Programs Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles, and Reporting) Program. COVID-19 - State and Local Fiscal Recovery Funds (CSLFRF); U.S. Department of Treasury; Assistance Listing Number 21.027 Criteria. A recipient of federal awards is expected to charge costs to the program that represent the actual amounts expended, rather than an estimate of costs incurred. Condition. Health insurance and workers compensation expenditures charged to the program were based on an estimate of the claims related to COVID-19 incurred, rather than the actual amount of claims that were paid out. Cause. This condition appears to have been the result of the County charging costs to federal programs that were not properly supported using actual amounts incurred. Effect. As a result of this condition, the County was exposed to an increased risk that costs charged to the grant program were not fully compliant with the applicable grant requirements. Questioned Costs. No costs were required to be questioned as a result of this finding, inasmuch as the County recorded an adjustment to correct the expenditures. Recommendation. We recommend that the County implement a process to ensure that only actual expenditures incurred are charged to federal programs. View of Responsible Officials. The County will continue to utilize, and not deviate from, existing procedures that rely on the reporting of actual expenditures for all federal awards. The use of estimates was utilized in one program, the American Rescue Plan, based on management's misinterpretation of interim guidance. Responsible Official. Connie Sobie, Controller/Administrator Estimated Completion Date. September 30, 2023.