Finding 1225240 (2024-002)

Noncompliance and Significant Deficiency 2 C.F.R. § 1000.10 gives regulatory effect to the U.S. Department of the Treasury for 2 C.F.R. § 200.329(c)(1), which requires non-Federal entities to submit performance reports at the intervals required by the Federal awarding agency. Additionally, the U.S. Department of the Treasury's Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Guidance on Recipient Compliance and Reporting Responsibilities requires eligible recipients to submit Project and Expenditure Reports on a quarterly basis, including information regarding project obligations and expenditures. The County did not have adequate procedures in place to ensure compliance with SLFRF reporting requirements. As a result, the required Project and Expenditure Reports were not submitted for three of the four quarters (75%) during the year ended December 31, 2024. Failure to submit required reports resulted in noncompliance with federal grant requirements and limited the U.S. Department of the Treasury's ability to monitor the County's use of SLFRF funds. The County should review applicable grant requirements and establish procedures to ensure all required reports are prepared and submitted by the prescribed deadlines. The County should also ensure reported information agrees to the County's accounting records.