Finding Text
Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Reporting). Program. Coronavirus State and Local Fiscal Recovery Funds (CSLFRF); U.S. Department of Treasury; ALN 21.027 (all). Criteria. CSLFRF grant recipients are required to file quarterly Project and Expenditure ("P&E") reports that include period-to-date and cumulative expenditures. Condition. During our audit, we noted a variance between amounts reported in all quarterly P&E reports and amounts recorded in the general ledger and presented on the schedule of expenditures of federal awards (SEFA) for fiscal year 2024. This resulted in an overall total difference of $320,511 between the 2024 P&E reports and the County's general ledger and SEFA. Cause. This condition was caused by management not appropriately tracking project expenditures in sufficient detail on the general ledger to allow for reconciliation to the underlying accounting records and each quarterly P&E report. Effect. As a result of this condition, the County did not fully comply with the requirements of the grant award or the Uniform Guidance. Questioned Costs. No costs have been questioned as a result of this finding, inasmuch as the reporting was deemed to be inaccurate, not the financial records. Recommendation. We recommend that the County reconcile quarterly P&E reporting with amounts in the general ledger to ensure that all expenditures reported are classified in the correct project category on the P&E reporting and in the correct reporting period. We recommend an independent review is completed to ensure the reporting is accurate. View of Responsible Officials. Management will conduct the final review and cross-check between the general ledger entries and amounts reported on the quarterly P&E reports to ensure accuracy in the amounts reported for the period.