Finding 1074364 (2023-002)

Finding 2023-002: Significant Deficiency – Reporting Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Agency: U.S. Department of the Treasury Federal Award Identification Number: N/A Federal Award Year: December 31, 2023 Criteria: Based on 42 USC 802 and 803 as implemented by the Treasury's Interim Final Rule and Final Rule at 31 CFR Part 35, recipients of the Coronavirus State and Local Fiscal Recovery Funds are required to submit special reporting on an annual basis. This reporting is to include current period obligations, cumulative obligations, current period expenditures and cumulative expenditures for each project. Condition: The County reported cumulative obligations and cumulative expenditures incurred since the start of the program as current period obligations and current period expenditures. As a result, the annual report overstated current period obligations and current period expenditures. Questioned Costs: Not applicable. Context: There was one report required during the current year and the projects reported included erroneously overstated current period obligations and current period expenditures. The sample was not considered statistically valid. Effect: Users of the annual report may incorrectly believe that current period obligations and current period expenditures for the projects during the reporting period were higher than what the County actually obligated and expended during that period. Cause: The cumulative obligations and cumulative expenditures incurred since the start of the program were mistakenly reported as the current period obligations and current period expenditures. Recommendation: We recommend that the county implements proper review over the annual reporting process. Someone other than the preparer of the report should provide adequate review prior to finalizing the report. This review should include verification that reported current period expenditure totals agree to the underlying general ledger detail as of the report date. These procedures should be documented and retained. Management's Response: Report was entered with project complete marked, and Administrator failed to zero out current period expenditures and obligations from previous reporting. The Administrator believes these were corrected in the report filed in 2024. The Administrator will have Auditor-Treasurer review the final report before submitting.