Finding 1214453 (2023-006)

U.S. Department of Treasury Federal Financial Assistance Listing 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: Recipients of federal financial assistance through the Coronavirus State and Local Fiscal Recovery Funds program were required to submit Project and Expenditure Reports showing amounts expended/obligated in the current period and the cumulative expenditures/obligations for the award. Condition: Various amounts reported as expended or obligated did not agree with amounts supported by the County’s accounting records. Cause: The County does not have an internal control system designed to provide for the accurate completion and review of the Project and Expenditure Report. Effect: The Project and Expenditure Reports that were submitted do not accurately report the proper amounts expended or obligated under the award. Questioned Costs: None reported. Context/Sampling: A non-statistical sample of 11 reports out of a population of 55 reports were selected for testing, with 4 sample selections incurring errors. Repeat Finding from Prior Year(s): No Recommendation: The County should review its internal control over compliance processes surrounding the reporting function to ensure that reports are accurately prepared and reviewed for agreement with the accounting records before they are submitted. Views of Responsible Officials: The County acknowledges discrepancies identified between reported amounts and underlying accounting records for certain reports. These issues relate to external reporting and classification processes rather than the completeness of the County’s accounting records. The County is strengthening review procedures to ensure reports agree to underlying financial data prior to submission.