Finding 1161069 (2024-005)

2024-005 Reporting Finding Type: Immaterial Noncompliance/Significant Deficiency in Internal Controls over Compliance (Reporting). Program. COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF); Passed through U.S. Department of Treasury: AL# 21.027; Direct Award. Criteria: Per the Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance (“Compliance and Reporting Guidance”), all recipients of federal funds must complete financial, performance, and compliance reporting as required by Part 2 of the Compliance and Reporting Guidance. The requirement to report projects’ obligations and expenditures and provide a project description applies to all funds under the SLFRF program, including funds spent under the revenue loss eligible use category. Condition. The County did not report project obligations or expenditures or provide a project description for funds spent under the revenue loss eligible use category. Cause. This condition appears to be the result of misunderstanding of what was by the Compliance and Reporting Guidance. Effect. As a result of this condition, the County did not comply with the provisions of the Compliance and Reporting Guidance of the SLFRF agreements and is exposed to an increased risk of having future costs disallowed. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs Recommendation. We recommend that the County implement policies, procedures and internal controls to ensure that all required reports are submitted correctly and accurately and evidence of the submission retained. View of Responsible Officials. Management concurs with this finding.