Finding 1089146 (2022-005)

Federal Agency: U.S. Department of Treasury Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Federal 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: Material Weakness in Internal Control Over Compliance, Other Matters Compliance Requirement: Reporting Criteria or Specific Requirement: Counties who have received less then $10 million in State and Local Fiscal Recovery Funds are required to submit an annual Project and Expenditure Report by April 30 of each year. This report is required to include any projects in which there were obligations or expenditures for any project that is to be funded by the Coronavirus State and Local Fiscal Recovery Funds during the preceding April 1 through March 31 period. Condition: The Project and Expenditure Report that was submitted April 24, 2023, did not include expenditures totaling $1,395,654 that had occurred during the timeframe of the report. Questioned Costs: None Context: The County reported total expenditures incurred of $552,327 when actual expenditures through the period of the report were $1,947,981. Cause: The County had identified a project that was to be funded by the State and Local Fiscal Recovery Funds program, however the County had recorded the expenditures outside of the ARPA fund created by the County to track expenditures related to the program. As the costs were not identified within the fund, the County did not report them as federal expenditures until the County recorded a transfer to reimburse the fund where the expenditures were recorded instead of when the expenditures were initially incurred. This transfer occurred after the April 24, 2023, report was filed. Effect: The Project and Expenditure Report was incorrect. Repeat Finding: No Recommendation: We recommend that the County review its procedures for tracking of federal expenditures related to the State and Local Fiscal Recovery Funds and ensure that all expenditures are recorded within the fund at the time they are incurred. Views of Responsible Officials: Refer to the management response per the corrective action plan.