Finding 1076227 (2023-004)

Finding 2023-004 Assistance Listing Number: 21.027 Program Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Grantor: United States Department of Treasury Pass-Through Agency: N/A Award Number / Year: Unknown/ 2023 Criteria: The Uniform Guidance and State Single Audit Guidelines require that local entities receiving federal and state awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. The Uniform Guidance and State Single Audit Guidelines further require auditors to obtain an understanding of the local entity's internal control over federal and state programs. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission reports, which should be reviewed and approved by a responsible party other than the original preparer. Condition/Context: The 2023 Project and Expenditure Reports for quarters selected for testing were not reviewed by an independent person before submission of the report. Our sample is not statistically valid. Cause: The County did not have internal control procedures in place requiring an independent person to review the reports before submission to ensure the reports were accurately and timely submitted. Effect: Reports submitted could contain errors. Questioned Costs: None noted. Recommendation: The County should review its internal control procedures to ensure there are proper review and approval processes over completeness and accuracy of reports are in place before submissions are completed. Management Response: The reporting process has been updated to ensure proper documentation of formal review prior to submission.