Finding Text
2023-003: Internal Control Over Reporting Requirements
Federal Grantor: U.S. Department of the Treasury
Federal Assistance Listing Number: 21.027
Program Title: Coronavirus State and Local Fiscal Recovery Funds (SLFRF)
Award Year: 2023
Questioned Costs: None
Criteria: The SLFRF Compliance and Reporting Guidance requires recipients to submit annual Project and Expenditure Reports to the Department of the Treasury by April 30 of each year, reporting the amount of expenditures for the reporting period as well as cumulative expenditures.
Condition: During audit fieldwork, the County Commission could not provide documentation to support that the one-time interim report or annual Project and Expenditure Reports have been properly and timely submitted to Treasury in accordance with SLFRF reporting requirements. As part of the response process the County provided a copy of the Project and Expenditure Report for the period ended March 31, 2023, which reported $0 of expenditures. The County indicated in the report that, “My jurisdiction does NOT have projects to report,” and stated in the report that, “No funds have been allocated to Government Services yet. The County has been waiting for the Final Rule before obligating to any projects.” However, the Treasurer’s Settlements for 2022 reported $1,122,531 of expenditures in the ARPA Fund in 2022 and the County had an Alternative Compliance Examination Engagement performed for the period.
Cause: It appears that there was confusion regarding the reporting requirements of the SLFRF and the need to maintain documentation of the reports submitted to the Treasury portal.
Effect: The County risks being out of compliance with SLFRF program reporting requirements if the proper reports are not timely and accurately submitted to Treasury.
Recommendation: We recommend the County implement procedures to ensure that all required reports are properly submitted to Treasury to ensure compliance with reporting requirements of the SLFRF program and that documentation of compliance is maintained.