Finding Text
Item 2023-001 Coronavirus State and Local Fiscal Recovery Fund, ALN 21.027
Type Significant Deficiency
Compliance Requirement Reporting
Criteria The U.S. Department of Treasury SLFRF Compliance and Reporting
Guidance requires the County prepare quarterly submissions of the
Project and Expenditure Report. The 2023 Compliance Supplement
identifies multiple Key Line Items in the report, including cumulative
expenditures and current period expenditures. Internal control should be
established and maintained to provide reasonable assurance that these
requirements are complied with by submitting the reports accurately.
Condition For the first two quarters of the fiscal year under audit, the Project and
Expenditure Report reported cumulative expenditures as program income,
and the total obligation was reported as cumulative expenditures before
the amounts had actually been spent.
Cause The County followed a process for reviewing the reports and understanding
program requirements; however, the new and emerging nature of the
program and related guidance limited the internal knowledge necessary to
identify the errors.
Effect Required reports submitted to the Federal Agency contained inaccuracies
to identified key elements.
Recommendation We recommend that the County expand its review process for key reports
to consider if new or emerging funding merits additional staff training or
the engagement of outside assistance.
Management’s Response We agree with the finding and have initiated discussions to provide
training and implement procedures to ensure compliance. The last two
quarterly reports prepared and sent to the U.S. Department of Treasury
during fiscal year 2023 were corrected.