Finding Text
Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A - Direct Pass-Through Number: N/A - Direct Award Period: March 3, 2021 – December 31, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) require non-federal entities to accurately and completely report federal expenditures for the entire applicable reporting period. Expenditure reports must include all eligible costs incurred during the period of performance and since the end of the prior reporting period. Condition: Current period expenditures reported for the Coronavirus State and Local Fiscal Recovery Funds program were understated by $279,451 on the March 31, 2025, Project and Expenditure report which should report expenditures from April 1, 2024 through March 31, 2025. Questioned costs: None. Context: The March 31, 2025 Project and Expenditure Report only included current period expenditures for the period July 1, 2024 through March 31, 2025; expenditures, totaling $279,451, incurred between April 1, 2024 through June 30, 2024 were erroneously excluded. Cause: The understatement occurred due to an error in determining the appropriate reporting period. Management did not ensure that expenditures incurred between April 1, 2024 and June 30, 2024 were included in the current period Project and Expenditure report. Effect: Current period expenditures reported were understated by $279,451, resulting in inaccurate reporting and noncompliance with federal reporting requirements. Repeat Finding: No. Recommendation: We recommend management implement procedures to ensure all eligible costs are reported in the current period expenditures section of the Project and Expenditure report. This may include maintaining a reconciliation between internal accounting records and amounts reported on the Project and Expenditure report and performing a supervisory review of the document prior to submission. Views of responsible officials: There is no disagreement with the audit finding.