Finding Text
Federal Agency: U.S. Department of Treasury Federal Program: COVID-19 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 Pass-Through Number: N/A Award Period: March 2021 through December 2026 Type of finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Condition: During our testing of the County's State and Local Fiscal Recovery Funds (SLFRF) Project and Expenditure Reports, we noted the reported amounts did not agree to the County's underlying accounting records and supporting documentation. The County did not have documented procedures requiring a reconciliation of reported expenditures to accounting records or documented review and approval of report prior to submission. Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires nonfederal entities receiving federal awards to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Effective internal controls should include that the grant report is reviewed and approved by someone other than the preparer prior to submission and that it ties to all underlying accounting records and documentation. Questioned costs: None Context: 3 of 3 SLFRF Project and Expenditure Reports tested lacked documentation of review and approval by someone other than the preparer. There were discrepancies between the expenditure reports submitted and underlying accounting records. Cause: The County lacked documented policies and procedures to ensure expenditures reported on SLFRF Project and Expenditure Reports were reconciled to supporting accounting records and reviewed for completeness and accuracy prior to submission. Effect: As a result, inaccurate information was submitted to the grantor. Repeat finding: No Recommendation: We recommend the County establish and document procedures for preparing, reviewing, and approving reports prior to submission. Review procedures should include reconciliation of reported expenditures to supporting accounting records and documentation. Views of responsible officials and planned corrective actions: The County agrees with this finding and will implement procedures requiring management review and approval of SLFRF reports prior to submission. Reported amounts will be reconciled to supporting records and documentation before filing.