Finding 1076609 (2023-003)

Review of Grant Reports Federal Agency: U.S. Department of the Treasury Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: Direct Program Pass-Through Numbers: N/A Award Period: March 3, 2021 – December 31, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Federal reports filed by the County to the various granting agencies must be accurate, reconcile to the County’s general ledger system. 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 review of the annual performance report by a position other than the preparer. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned Costs: None Context: The County did not have documentation of review and approval of the annual performance report required by the grant. Cause: The County had not completed an assessment of the internal control requirements from the grant and had not identified an individual to review the report for accuracy prior to submission. Effect: The report submitted by the County may contain errors that would not be detected. Repeat Finding: No Recommendation: We recommend that the County review its internal controls and implement a procedure to ensure all reports required under the grant have a designated reviewer that is distinct from the individual responsible for preparing. We also recommend the County develop a procedure to ensure any new grants awarded to the County have an internal control assessment performed to document the responsibilities of individuals involved in the grant’s management. Views of Responsible Officials: Refer to the management response per the corrective action plan.