Finding 16702 (2022-004)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-26
Audit: 21335
Organization: Grand Forks County (ND)

AI Summary

  • Core Issue: The County submitted inaccurate quarterly reports for federal expenditures, with expenses misclassified and overstated.
  • Impacted Requirements: Reports must accurately reflect obligations and expenditures as per federal guidelines.
  • Recommended Follow-Up: Implement stronger oversight and establish clear policies to ensure accurate report submissions moving forward.

Finding Text

2022-004 Finding Federal Program Coronavirus State and Local Fiscal Recovery Funds (21.027) Federal Award Number and Year ? SLFRP2882, 2021 Reporting Significant Deficiency Criteria Page 9 of the Coronavirus State and Local Fiscal Recovery Funds: Project and Expenditure Report User Guide Version 1 (January 7, 2022) states :?An obligation is an order placed ? such as a contract ? and similar transactions that require payment. An expenditure is when the service has been rendered or the good has been delivered to the entity, and payment is due.? Condition We sampled 2 of the 4 quarterly reports submitted that contained 2022 federal expenditures and tested for accuracy and to ensure the reports are submitted by their respective due date. We noted one report had expenses listed not in the correct project when compared to the supporting documentation. These expenses were corrected in the next quarters? report, but we also noted another project had expenses overstated in the same report. We also noted that the County had corrected this overstatement by year end. Cause Lack of oversight by management. Questioned Costs None Context We sampled 2 of the 4 quarterly reports submitted that contained 2022 federal expenditures and tested for accuracy and to ensure the reports are submitted by their respective due date. We noted one report had expenses listed not in the correct project when compared to the supporting documentation. These expenses were corrected in the next quarters? report, but we also noted another project had expenses overstated in the same report. We also noted that the County had corrected this overstatement by year end. Effect The County submitted inaccurate reports to the federal government. Repeat Finding Yes ? see 2021-004 Recommendation The County should implement policies and procedures to ensure all reports are submitted accurately. Views of Responsible Officials See Corrective Action Plan.

Corrective Action Plan

2022-004 - Finding Condition We sampled 2 of 4 quarterly reports submitted that contained 2022 federal expenditures and tested for accuracy and to ensure the reports are submitted by their respective due dale. We noted one report had expenses listed not in the correct project when compared to the supporting documentation. These expenses were corrected in the next quarters' report, but we also noted another project had expenses overstated in the same report. We also noted that the County had corrected this overstatement by year end. Corrective Action Plan per Debbie Nelson, Auditor We agree. We will review the reporting requirements of the Coronavirus State and Local Fiscal Recovery Funds to ensure all costs and obligations for various projects, contracts, and expenditures are included in the appropriate sections of the report. Anticipated Completion Date Fiscal Year 2023

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 16703 2022-005
    Material Weakness Repeat
  • 593144 2022-004
    Significant Deficiency Repeat
  • 593145 2022-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.19M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $336,027
12.003 Community Economic Adjustment Assistance for Responding to Threats to the Resilience of A Military Installation (b) $133,000
97.067 Homeland Security Grant Program $130,595
97.042 Emergency Management Performance Grants $74,130
20.600 State and Community Highway Safety $35,061
16.034 Coronavirus Emergency Supplemental Funding Program $29,225
20.616 National Priority Safety Programs $13,254
16.607 Bulletproof Vest Partnership Program $4,493
97.012 Boating Safety Financial Assistance $2,000