Finding Text
Criteria or specific requirement: Per the U.S. Department of the Treasury’s CSLFRF Compliance and Reporting Guidance, recipients are required to accurately report cumulative expenditures in the SLFRF Project and Expenditure (P&E) Report. Condition: The County of Lassen reported cumulative CSLFRF expenditures of $5.9 million in its SLFRF Compliance P&E Report for the period ended March 2023. However, only $4.9 million had actually been expended as of June 30, 2023. Questioned costs: None Context: The County reported $2,760,000 in expenditures related to the program on its Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2022, and $2,178,448 for the year ended June 30, 2023, for a total of $4,938,448 in cumulative expenditures. The P&E report submitted for the period ended March 2023 indicated that $5,938,447. Cause: The County had transferred funds of $1 million related to a project from the Coronavirus Relief Fund to the General Fund, but as of June 30, 2023, no funds had been spent related to the project. Effect: Cumulative expenditures in the County's P&E report for the period ended March 2023, were overstated by $1 million. Incorrect federal reporting may impact program oversight and compliance assessments. Repeat Finding: This is not a repeat finding. Recommendation: The County should implement enhanced review procedures to ensure accurate and timely reporting of CSLFRF expenditures. This includes reconciling reported amounts with actual expenditures recorded in the financial system prior to submission. Views of responsible officials: There is no disagreement with the audit finding.