Finding 1161182 (2024-003)

Finding 2024-003: Local Assistance and Tribal Consistency Fund, Assistance Listing No. 21.032, U.S. Department of Treasury Compliance Requirements: Reporting Grant No.: N/A Type of finding: Internal Control (material weakness) and Compliance (material noncompliance) Criteria: The Reporting Guidance for the Local Assistance and Tribal Consistency Fund (LACTF) requires the County as the recipient to submit an Obligation and Expenditure Report annually. This report should include aggregate obligations and expenditures by governmental purpose reporting category which should match County LATCF grant expenditures reported in the financial statements within 10 percent. Condition: The County overreported current period LATCF obligations and expenditures by $482,368 which is greater than a 10% difference on the annual 2024 Obligation and Expenditure Report. Cause: The County does not have a complete system of internal controls that provides for the review of the Obligation and Expenditure Report. Questioned Costs: None Effect: The Obligation and Expenditure Report contained errors and was not in compliance with the financial reporting requirements of the Reporting Guidance. Recommendation: The County should strengthen its internal controls with adopted policies and procedures to ensure accurate financial reporting in compliance with the Reporting Guidance for the Local Assistance and Tribal Consistency Fund. Management’s Response: See corrective action plan.