Finding 1149757 (2024-003)

Section III - Findings or questioned costs for Federal awards, including those specified by the Uniform Guidance. 2024-003 Compliance with Reporting Requirements for COVID-19 State and Local Fiscal Recovery Funds Federal Program, Assistance Listing Number, Federal Award Year, Federal Agency COVID-19 State and Local Fiscal Recovery Funds – American Rescue Plan Act, 21.027, 2024, U.S. Department of Treasury Criteria or Specific Requirement Uniform Guidance 2 CFR 200.328 and 31 CFR section 45.4(c) require accurate reporting for key line items within Federal performance reports. Condition Found Reports submitted to the Department of the Treasury for COVID-19 State and Local Fiscal Recovery Funds did not include all expenditures applicable to the reporting period. Cause: After spending approximately 30 years with the Police Jury, the Treasurer retired in November 2024, and a new Treasurer was not hired until the end of May 2025. Additionally, two other accounting staff members (approximately 29% of accounting personnel) resigned/retired during the late 2024/early 2025 timeframe. A consulting CPA assisted with operations in the interim between Treasurers. The Treasurer is responsible for ensuring that internal controls are properly designed and operating effectively, and for managing most of the financial close processes. The limited staff exercised diligence to accomplish much of the financial close process, but timeliness was an issue as the staff was operating with an increased workload, and not all responsibilities handled by the Treasurer were fully addressed. Effect: Cumulative expenditures reported to the Department of the Treasury were understated by $382,277 of $10,254,543 total expenditures. Questioned Costs N/A Recommendations to Prevent Future Occurrences The Police Jury should ensure the new Treasurer is proactive in the next financial close process and reviews their policies and procedures and the Louisiana Legislative Auditor’s best practices to ensure that internal controls are properly designed, implemented, and maintained to ensure accurate and timely financial close and reporting. Management’s Response Refer to corrective action plan.