Finding 12575 (2022-003)

2022-003 Reporting Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Significant Deficiency and Other Matter Federal Agency: U.S. Department of the Treasury Program: 21.027 COVID-19 ? Coronavirus State and Local Fiscal Recovery Funds Criteria: Title 2 U.S. Code of Federal Regulations ? 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Of the four quarterly Project and Expenditure Reports, two reports were reported inaccurately. Questioned Costs: None. Context: The current period expenditures for the revenue replacement project in the third quarter report were underreported by $562,930. The current period expenditures for the broadband project in the fourth quarter report were overreported by $49,975. Effect: The U.S. Treasury Department did not receive accurate current period expenditures for the third and fourth quarter Project and Expenditure Reports for the revenue replacement and the broadband projects. Cause: When preparing the third and fourth quarter Project and Expenditure Reports, staff decided to reclassify expenditures from the revenue replacement project to the broadband project and simply inserted the wrong current period expenditures on the report. The cumulative expenditure amounts reported for each project were correctly reported. Only the current period expenditure amounts were incorrect. Recommendation: We recommend that the County review its quarterly Project and Expenditure Reports to ensure that the amounts reported are complete and accurate. View of Responsible Official: Concur