Finding 23168 (2022-002)

2022 ? 002 Emergency Rental Assistance Reporting Prior Year Finding: N/A Federal Agency: Department of the Treasury Federal Program: COVID-19 ? Emergency Rental Assistance Assistance Listing Number: 21.023 Award Number and Period: ERA0279 (1/12/2021 ? 9/30/2022) ERAE0206 (5/10/2021 ? 9/30/2025) ERAE0299 (5/10/2021 ? 9/30/2025) Compliance Requirement: Reporting Type of Finding: Material Weakness in Internal Control over Compliance, Other Matters Criteria or specific requirement: Compliance: Non-federal entities are required to submit quarterly SF-425 Financial Reports and quarterly Special Reports no later than 15 days after the end of each quarter, in accordance with the terms and conditions of the Federal award. On a monthly basis Non-federal entities are required to submit Monthly Reports no later than 15 days after the end of the month, in accordance with the terms and conditions of the Federal award. Internal Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with the guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control-Integrated Framework," issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The County was not able to provide supporting documentation for their reported amounts. The County failed to retain data records for the point in time that was used to report each submission. As a result, reported key line items could not be supported. Questioned costs: None. Context: We reviewed a sample of the Quarterly SF-425 Financial Reports as well as the Monthly Special Reports and Quarterly Special Reports filed during FY2022. The following exceptions were noted: SF-425: For 2 of 2 quarters selected we reviewed the ERA-1 and ERA-2 required reports. We noted that supporting documentation could not be provided to substantiate that the reports were compiled accurately. Various amounts on the treasury submissions could not be tied back to any support. Monthly Report: For 1 of 4 ERA-1 & ERA-2 monthly reports reviewed, we noted that the ERA-1 report incorrectly entered the ?Number of households assisted? amount. The reported amount should have been 110 and 120 was reported. Quarterly Report: For 2 of 2 quarters selected we reviewed the ERA-1 and ERA-2 required reports. We noted that supporting documentation could not be provided to substantiate that the reports were compiled accurately. Key line items ?current quarter obligations?, ?current quarter expenditures?, ?cumulative obligations to date? and ?cumulative expenditures to date? could not be tied back to any support. Cause: Procedures and controls were insufficient to ensure that supporting documentation was maintained and available for audit and that reports were filed accurately. The reports are filed electronically, and the County did not maintain copies of all supporting documentation used to prepare SF-425, Monthly and Quarterly reports. Effect: Monthly and Quarterly data reported for the program was unable to be supported with adequate documentation. Recommendation: We recommend that policies and procedures be implemented to ensure that all financial and special reports are filed timely and accurately and that reports are reviewed and approved by an authorized State official prior to submission to ensure accurate support for the reported amounts. Views of responsible officials: Management agrees with the finding.