Finding 1239032 (2025-004)

Finding 2025-004: Significant Deficiency – Controls and Compliance over Reporting Repeat of Prior Year Finding 2024-002. Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Agency: U.S. Department of the Treasury Federal Award Year: December 31, 2025 Criteria: Pursuant to 42 USC 802 and 803, as implemented by the Treasury's Interim Final Rule and Final Rule at 31 CFR Part 35, recipients of the Coronavirus State and Local Fiscal Recovery Funds are required to submit special reporting on an annual basis. The County’s annual report was required to be submitted by April 30, 2025. Effective internal controls over the reporting process should ensure that reports are complete, accurate, submitted timely, and appropriately reviewed prior to submission. Condition/Context: The County submitted its annual report on June 10, 2025, after the required April 30 due date. In addition, there was no documented evidence that the report had been reviewed and approved by an individual other than the preparer prior to submission. The sample was not a statistically valid sample. Effect: Without effective controls over the review and timely submission of the annual report, there is an increased risk that required reports may be submitted late or contain incomplete, inaccurate, or unsupported information. Cause: The County had not established adequate controls to ensure the annual report was independently reviewed and submitted by the required due date. Questioned Costs: Not applicable. Recommendation: We recommend that the County implement proper review procedures over the annual reporting process to ensure reports are complete, accurate, and submitted timely. Someone other than the preparer should perform adequate and documented review prior to finalizing the report. This review should include verification that reported expenditure totals agree to the underlying general ledger detail as of the report date. Evidence of the review procedures should be documented and retained. Views of Responsible Officials: Trempealeau County, being a small county, has limited resources in personnel to accomplish a multi-verification in the reporting process. We will use additional current employees in-house to do the verification to make sure the reporting is accurate before submitting. The 2026 annual report was submitted by the due date.