FINDING 2022-003
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
Department of the Treasury (Treasury). The reporting periods, as wel...
FINDING 2022-003
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
Department of the Treasury (Treasury). The reporting periods, as well as the respective due dates, are
based upon type of recipient and its 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 more than $10 million in Coronavirus State and Local Fiscal Recovery Funds
(CSLFRF). Therefore, quarterly P&E Reports were due by January 31, 2022, and the last day of the
month after the end of each quarter thereafter.
The County submitted four quarterly P&E Reports during the audit period. The County’s process for the
completion and submission of the P&E Reports was the Grant Administrator prepared the P&E Reports
and the County Auditor reviewed them prior to submission; however, the control was not effective in
detecting and preventing noncompliance.
Two of the four quarterly reports submitted during the audit period were selected for testing. The County
utilized the current period obligations field to document total obligations less current period expenditures.
For the reports tested, the current period obligations, per the County’s interpretation of the field, were not
supported by the County’s records. The following errors were noted:
Quarter 2 P&E Report (April 1, 2022 - June 30, 2022)
The Current Period Obligations for the Revenue Replacement project were overstated by $399,097.
Quarter 3 P&E Report (July 1, 2022 - September 30, 2022)
The Current Period Obligations for the Prairie Creek Water Run Water Line project were overstated by
$67,773.
The Current Period Obligations for the Parks Department - Latrine project were overstated by $25,758.
The Current Period Obligations for the Foraker/Southwest project were overstated by $230,338.
The lack of effective internal controls and noncompliance was a systemic issue during the audit period.
Contact Person Responsible for Corrective Action: Patricia Pickens
Contact Phone Number and Email Address: 574.535.6719 ppickens@elkhartcounty.com
INDIANA STATE BOARD OF ACCOUNTS
36
117 N. 2ND St Rm 203 Goshen, IN 46526 - 574-535-6719
Views of Responsible Officials:
We disagree with the finding.
Explanation and Reasons for Disagreement:
The finding does not accurately reflect the administration of the SLFRF program and fails to correctly
identify key challenges that impacted the difference in data.
There is a rigorous system of diligent records keeping, auditing expenditures, and internal controls
including multiple points of review and approval for reporting ARPA funds. All expenditures are
accounted for and maintained with supporting documentation.
The auditing team can clearly demonstrate attention to detail in the tracking and reporting of all
expenditures. They also have extensive record of on-going issues with the reporting portal including
tickets and communications with Treasury support. They have identified issues with the portal that
prevented the submission of reports or caused erroneous calculations/data.