Finding Text
2023 – 004 Reporting
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: SLFRP3738 11/30/2021
Award Period: March 3, 2021 through December 31, 2024
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Uniform Grant Guidance (2 CFR 200.329) requires non-federal entities submit performance reports required by Federal award and that the data accumulated and summarized is in accordance with the required or stated criteria and methodology. Effective internal controls should include ensuring the reported projects and expenditures accurately reflect what is reported in the expenditure detail and amounts obligated should reflect total procurement amounts awarded.
Condition: While the correct expenditures were reported on the schedule of expenditures of federal awards, the expenditure reports filed during the year did not accurately report project details. Cumulative expenditures should report amounts expended through the end of the period and cumulative obligations should report total procurement amounts awarded.
Questioned costs: None
Context: The County incorrectly reported cumulative expenditures and cumulative obligations in 4 of 4 reports tested.
Cause: Total cumulative expenditures were not reconciled to total amounts reported in the ledger. Reported project obligations were based on projects costs that been incurred and not contract sum awarded.
Effect: Noncompliance with reporting requirements.
Repeat Finding: This finding is a partial repeat of a finding in the prior year. The prior year finding number was 2022-004.
Recommendation: We recommend the County strengthen its review procedures over reports. Total cumulative expenditures and total cumulative obligations reported should reconcile to the total amounts reported in the project accounting records used to support the SEFA.
Views of responsible officials: There is no disagreement with the audit finding.