Finding 1081522 (2022-001)

Finding: Reporting Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Agency: U.S. Department of Treasury Criteria: In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200.510, auditees receiving federal funds must prepare an annual Schedule of Expenditure of Federal Awards (SEFA) detailing the value and type of federal assistance received each year. The federal Office of Management and Budget issues instructions on how to prepare this schedule. Key information to be reported includes the assistance listing (AL) number provided in the federal awards/subaward agreements and associated expenditures incurred in the fiscal year. At the County, the SEFA is prepared by the Auditor’s Office based on information provided by various departments receiving Federal funds and information contained in the accounting system. Condition: One federal award expenditure amount was incorrectly reported. Total expenditures of $2.1 million originally reported for the Coronavirus State and Local Fiscal Recovery Funds were increased by $3.4 million to bring the final expenditures to $5.5 million for the year ended December 31, 2022. Questioned Costs: N/A Context: During the review of the support for the 2023 schedule of expenditures of federal awards, it was noted that $3.4 million of 2022 expenditures was incorrectly included in the population. Effect: The federal government and pass-through entities rely on the SEFA information to be reported accurately. In addition, accurate SEFA information is relied upon by the auditors in order to perform the major program determination utilized to select the federal programs subjected to single audit procedures. The condition resulted in the reissuance of the County’s 2022 Single Audit Report for restatement of the SEFA and inclusion of the AL #21.027, Coronavirus State and Local Fiscal Recovery Fund, at the proper amount of federal awards expended as of December 31, 2022. Cause: Internal controls and review processes were not in place to ensure the accuracy of expenditures reported on the annual SEFA. Identification as a repeat finding: N/A Recommendation: Management should implement procedures to help ensure that controls are in place that will allow for the accurate preparation of the SEFA. We recommend that the County perform a detailed analysis of expenditures for all significant awards on an annual basis. Views of Responsible Officials and Planned Corrective Actions: We agree with the finding. See separate report for planned corrective actions.