Finding 1099039 (2024-003)

2024-003 U.S. Department of Treasury COVID-19: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027 Reporting Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all direct assistance grant awards included under assistance listing 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: The OMB Compliance Supplement requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Pershing County must submit an annual Project and Expenditure Report that contain costs incurred during the covered period. Critical information includes, in part: o Obligations and Expenditures • Current period obligation • Cumulative obligation • Current period expenditure • Cumulative expenditure Condition: Current obligation information was not reported in accordance with governing requirements. Additionally, there was no evidence of secondary approval over the Project and Expenditure Report Cause: Pershing County did not have adequate internal controls to ensure Project and Expenditure Reports were prepared in accordance with governing requirements. Effect: Inaccurate information was reported to the federal awarding agency. Questioned Costs: None 136 Pershing County Schedule of Findings and Questioned Costs Year Ended June 30, 2024 Context/Sampling: The total population of one report was selected for testing. The County reported current obligations for the amount the County recognized as a payable, rather than the obligations (i.e., contracts) that were entered into during the reporting period. The impact is as follows: Period Ended March 31, 2024 Originally Reported Actual CSLFRF: Current Period Obligation $299,700.99 $0 Repeat Finding from Prior Year: No Recommendation: We recommend the County enhance internal controls to ensure Project and Expenditure Reports are prepared in accordance with governing requirements and includes a secondary approval by an individual other than the preparer. Views of Responsible Officials: Management agrees with the finding.