Finding Text
CFDA Number, Federal Agency, and Program Name 21.027, U.S. Department of Treasury, Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year N/A Pass through Entity N/A Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding No Criteria Per 2 CFR 200.303(a) 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 be in compliance with 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 During the audit of federal expenditures, it was noted that the Charter Township incorrectly reported project expenditure categories to Treasury. Questioned Costs N/A Identification of How Questioned Costs Were Computed N/A Context Project expenditure category amounts reported by the Township included $114,346 of expenditures reported as Administrative Expenses and Public Sector Capacity: Administrative Needs. The correct categorization of these costs was Public Sector Workforce: Payroll and Benefits for Public Health, Public Safety, or Human Services Workers Cause and Effect The Charter Township's process in place to review reports submitted to Treasury was not effective in identifying the reporting error. This resulted in the Charter Township incorrectly reporting expenditures to Treasury. Recommendation We recommend the Charter Township implement another layer of review to ensure reported costs are accurate. Views of Responsible Officials and Planned Corrective Actions The Charter Township agrees with the finding and will put procedures into place to ensure appropriate layers of review are performed when reporting expenditures.