Finding 1075266 (2023-002)

Finding 2023-002 – Reporting U.S. Department of Treasury COVID-19 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) – ALN 21.027 Reporting Condition: The internal control system to ensure that the Project and Expenditure Report submitted to Treasury was accurate was not operating effectively. During the 2022 reporting year, the County reported expenses on the fourth quarter report that had already been included on previous reports. In addition, the County elected to not apply expenditures related to a project to the CSLFRF funds for approximately $720,000 that were previously reported to Treasury as a use of these funds. As a result the errors in 2022, the cumulative expenditures on the Project and Expenditure Report, which are considered to be key line items being reported, are not accurate. Criteria: Quarterly reports are required to be accurate and include all activity of the reporting period, supported by the applicable accounting records and fairly presented in accordance with Treasury requirements. The reports are to include the current period expenditures, as well as the cumulative expenditures related to the projects. Cause: Internal controls in place to ensure that the quarterly reports were completed accurately were not adequate. Effect: The quarterly reports submitted to Treasury do not contain information supported by the accounting records of the County. Questioned Costs: Unknown. Identification as a Repeat Finding: This is a repeat finding from the prior audit. See Finding 2022-002. Recommendation: We recommend the County ensure proper correction of previously submitted reports. Management’s Response: Management agrees with this finding. See separate Corrective Action Plan.