Finding 1057512 (2023-003)

Information on the Federal Program: Assistance Listing Number 21.027 – Coronavirus State and Local Fiscal Recovery Funds. Compliance Requirement: Reporting. Type of Finding: Significant deficiency in internal control over major federal programs. Criteria: The Uniform Guidance at 2 CFR 200.328 requires certain recipients of Coronavirus State and Local Fiscal Recovery Funds to submit quarterly and annual project and expenditure reports to the U.S. Department of the Treasury including, but not limited to, total obligations of funds, total expenditures of funds, and total number of projects. Condition: We noted that multiple quarterly reports did not accurately report total expenditures as of the date of the reporting period. Cause: Tracking spreadsheets were not appropriately updated to capture all expenditures of federal funds. Effect or Potential Effect: The County has a significant deficiency in internal control with respect to reporting of federal expenditures. Recommendation: Controls should require a secondary review and reconciliation of quarterly and annual reports to the County’s general ledger prior to submission by the grant director.