Finding 1074976 (2023-002)

SECTION III - FEDERAL AND STATE AWARD FINDINGS AND QUESTIONED COSTS 2023 – 002 Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: 2023 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: January 1, 2023 - December 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR 200.302 requires that "The financial management system of each non-Federal entity must provide for the following: (1) Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the AL title and number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any." Grant claims filed by the County to the various granting agencies must be accurate, reconcile to the County general ledger system, and for cost-reimbursement grants, represent costs incurred. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Condition: There was no final formal review of the quarterly project & expenditure reports in comparison to the general ledger. Questioned costs: None Context: While performing audit procedures, it was noted that there was not a final formal review done of the quarterly project & expenditure reports in comparison to the general ledger. Cause: Due to the County not having a formal review process in place, the County under-reported 2023 expenditures to the U.S. Department of Treasury. Effect: The County could over- or under-report certain expenditures. Repeat Finding: No Recommendation: We recommend the County review its processes and implement controls to formally review these quarterly reports and that they are compared and reconciled to the general ledger. Views of responsible officials: There is no disagreement with the audit finding.