FINDING 2023-003
Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds - Reporting
Summary of Finding:
Recipients are required to submit quarterly or annually Project and Expenditure (P&E) reports to
the U.S. Department of the Treasury (Treasury). The reporting periods, as we...
FINDING 2023-003
Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds - Reporting
Summary of Finding:
Recipients are required to submit quarterly or annually Project and Expenditure (P&E) reports to
the U.S. Department of the Treasury (Treasury). The reporting periods, as well as the respective due
dates, are based on the type of recipient and the recipient’s population, as well as the recipient’s
allocation amount. Information to be reported includes projects funded, expenditures, and contracts for
the appropriate reporting period.
The County was classified as a metropolitan county with a population below 250,000 residents
that received an allocation of less than $10 million in State and Local Fiscal Recovery Funds. As such,
the initial P&E report, covering the period from March 3, 2021 to March 31, 2022, was required to be
submitted to the Treasury by April 30, 2022. The subsequent annual reports are to cover one calendar
year and must be submitted to the Treasury by April 30 each year.
The County submitted one P&E report during the audit period, which was obtained from the
Treasury's website. Although one employee prepared the P&E report and another reviewed the entries,
the system of internal controls was not effective in preventing, detecting, or correcting errors.
The data submitted included amounts which should not have been included and amounts which
were not supported by the County’s records. Errors identified included the following:
• Total Cumulative Obligations were overstated by $907,630.
• Total Cumulative Expenditures were overstated by $4,332,524.
The lack of effective internal controls and noncompliance were isolated to the P&E Report
submitted during the audit period.
Contact Person Responsible for Corrective Action: Britt Ostler
Contact Phone Number and Email Address: (765) 659-6330
Views of Responsible Officials: We concur with the finding.
Description of Corrective Action Plan:
INDIANA STATE BOARD OF ACCOUNTS
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The County received guidance from a consultant in regards to reporting the SLFRF. The
consultant had advised “if the County planned to spend $5M, then the total cumulative “obligations” would
be $5M.
Per review of the SBOA, two figures in the 2023 P&E Report were miscalculated: Cumulative
Obligations and Cumulative Expenditures. The Cumulative Obligations reported should be the amount
contracted for the project plus any change orders. The Cumulative Expenditures should be the amount
expended in prior years, if any, plus the amount expended until March 31st of the year the P&E Report is
dated. The current period for the 2023 P&E Report covered April 1, 2022 to March 31, 2023. Future P&E
Reports submitted for this grant will use this understanding of Cumulative Obligations and Cumulative
Expenditures and will be prepared by the County Auditor and reviewed by a second individual prior to
submission.
Anticipated Completion Date: April 1, 2025