Finding Text
Finding: 2023-005-HC –Significant Deficiency in Internal Control over Compliance and Other Matter
Federal agency: U.S. Department of Treasury
Federal program title: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number (ALN): 21.027
Pass-through agency: None
Federal award number: 1505-0271
Federal Award Year: FY2021, FY2022, FY2023
Control Category: Reporting
Questioned Costs: Undetermined
Criteria or specific requirement: The Uniform Guidance in 2 CFR Section 200.303, Internal Controls,
requires that non-federal entities receiving Federal awards (i.e. auditee management) establish and maintain
internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award.
Additionally, pursuant to the compliance supplement for ALN 21.027, Performance Reports are required to be
submitted annually.
Condition: During our review of the FY2023 performance report submitted by the County, we discovered that
the reported grant expenditures did not match the underlying financial information. We expanded our scope to
include the entire grant reporting period, which included FY2021, FY2022, and FY2023. We discovered that
none of the (3) annual reports accurately reflected the expenditures reported on the Schedule of Expenditures of
Federal Awards.
Cause: Policies and procedures have not been designed and implemented to ensure accurate reporting of grant
expenditures in accordance with Uniform Guidance.
Effect: This condition results in inaccurate reporting of grant expenditures to the grantor and could result the
loss of federal funds to the County.
Recommendation: We recommend that the County implement necessary internal controls to ensure its
compliance with the requirements of the Uniform Guidance.
Management’s Response: Management’s response is provided within the corrective action plan on page I-103.