Finding 1131070 (2024-004)

U.S. Department of Treasury COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (CSLFRF), Federal Financial Assistance Listing 21.027, Award Year – Fiscal Year 2021 and 2022 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards 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. Elko County must submit quarterly Project and Expenditure Reports that contain CLSFRF costs incurred during the covered period to the Treasury Office of Inspector General. Critical information includes: • Current period obligation • Cumulative obligation • Current period expenditure • Cumulative expenditure Condition: The County did not have adequate internal controls to ensure reporting requirements were met. The critical information reported did not have underlying support that tied to the reported amounts. Also, there was no evidence of a secondary approval over the quarterly Project and Expenditure Reports. Cause: The County did not have adequate internal controls to ensure reports were accurate and that proper documentation was maintained for reporting requirements. Effect: Inaccurate information may be reported to the federal awarding agency. Questioned Costs: None reported. Context/Sampling: All reports submitted during the year were tested, which was a total of four quarterly reports. Repeat Finding from Prior Year: Yes, prior year finding 2023-002. Recommendation: We recommend Elko County enhance internal controls to ensure its reports are accurately prepared prior to submission and includes a secondary approval by someone other than the preparer. Views of Responsible Officials: Management will closely review the Project and Expenditure Report User Guide to ensure future reports are in compliance and are properly reviewed prior to submission.