Finding Text
Internal controls over Coronavirus State and Local Fiscal Recovery Funds reporting did not identify certain reporting classification matters before submission Criteria - Title 2 CFR 200.303 requires recipients to establish, document, and maintain effective internal control over federal awards that provides reasonable assurance the award is managed in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Treasury’s Coronavirus State and Local Fiscal Recovery Funds (SLFRF) compliance and reporting guidance requires recipients to report SLFRF projects and expenditures using appropriate reporting categories and to maintain supporting records. Condition - During the audit of the County’s major program, SLFRF (ALN 21.027), we noted that certain SLFRF project and recipient classifications in Treasury Project and Expenditure reporting required revision. Management reviewed the activity and corrected the classifications. No expenditures were added to or removed from the SLFRF program as a result of the corrections. Cause - The County’s review internal controls over SLFRF reporting did not identify certain reporting classification matters before submission. Effect - Certain Treasury Project and Expenditure reporting categories did not accurately reflect the related activity upon initial submission before correction. Because the County corrected the classifications and no expenditure was added or removed, no questioned costs were noted. Recommendation - We recommend that the County enhances its SLFRF reporting review process to include documented review of reporting categories and reconciliation to supporting records before future submissions. Views of Responsible Officials - See Auditee Corrective Action Plan.