Finding Text
2 CFR 1000.10 gives regulatory effect to the Department of Treasury for 2 CFR part 200.302. 2 CFR 200.302(a) states, in part, the non-Federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR 200.302(b)(2) further states, in part, the financial management system of each non-Federal entity must provide for accurate, current, and complete disclosures of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 and 200.329. Additionally, the U.S. Department of the Treasury Coronavirus Local Fiscal Recovery Fund (SLFRF) Award Terms and Conditions provides that "Recipient agrees to comply with any reporting obligations established by Treasury as they relate to this award." The U.S. Department of the Treasury requires non0entitlement unit’s (NEU’s) that are allocated less than $10 million in SLRF Funding to submit an annual Project and Expenditure Report. This report is required to include project descriptions, obligations and expenditures including current period obligation, cumulative obligation, current period expenditure, and cumulative expenditure, and other information. Due to deficiencies in the Township's internal controls over SLFRF reporting, the Township understated current period obligations, current period expenditures, and cumulative expenditures by $304,200, $786,589, and $786,589, respectively, in the annual project and expenditure report for the period of April 1, 2024 to March 31, 2025. Additionally, the Township overstated current period obligations and current period expenditures by $2,606,935 and $1,204,345, respectively, in the annual project and expenditure report for the period of April 1, 2025 to March 31, 2026. Failure to report accurate obligation and expenditure amounts could result in the Department of Treasury taking action against the Township for failure to comply with programmatic requirements. This noncompliance also resulted in the opinion over this major federal program being qualified. The Township should implement policies and procedures to review the reports prior to submission to help ensure the reports are complete and accurate.