Finding 1160383 (2024-003)

Finding 2024-003 – Material Weakness/Reporting Noncompliance COVID-19 Coronavirus State and Local Fiscal Recovery Funds – ALN 21.027 U.S. DEPARMENT OF TREASURY Criteria: The U.S. Department of Treasury established reporting requirements for local governments. These requirements established methods and timelines for reporting Coronavirus State and Local Fiscal Recovery Funds (SLFRF expenditures to the U.S. Department of Treasury). Condition: The County misidentified contractors and beneficiaries as subrecipients on the quarterly reports to Treasury. Context: During our review of the quarterly project and expenditure reports, we noted the County improperly reported 70 and 82 contractors and beneficiaries as subrecipients on the 2024 Quarter 2 and 3 SLFRF Compliance Reports, respectively. Cause: Lack of sufficient internal controls over the reporting requirements of the Coronavirus State and Local Fiscal Recovery Funds. Effect: The County was not in compliance with reporting requirements in 2024. Recommendation: We recommend the County improve controls over the reporting requirements associated with this program. This includes obtaining a better understanding of the reporting processes in the Treasury reporting portal.