Finding Text
Finding 2022-001 Non-Compliance/Significant Deficiency in Internal Control Over Compliance ? U.S. Department of Treasury ? Coronavirus State and Local Fiscal Recovery Funds ? (Federal Assistance Listing Number 21.027) ? Reporting Criteria: Recipients of Coronavirus State and Local Fiscal Recovery Funds are required to file Project and Expenditure Reports on a regular, recurring basis. For local governments that are in the tier which the Town of Dudley is in, the reporting is required annually as of the end of March each year. The Project and Expenditure Reports require information to be reported on financial data, projects funded, expenditures, and contracts and subawards over $50,000, and other information. The financial data and expenditures reported should reflect the financial activity and expenditures on the municipal general ledger. Condition: The Town of Dudley did submit a Project and Expenditure Report as of March 2022. However, the Town reported zero dollars in obligations and zero dollars in expenditures as of March 2022. The Town had charged $386,405.65 in bills and payrolls as of March 31, 2022, under the category of providing government services under revenue loss, as reflected on the Town?s general ledger. Cause: The person completing the report did not reconcile the reported expenditures to the Town Accountant?s records. Effect: The amount of total obligations and the amount of total expenditures on the Project and Expenditure Report is misstated by the amount of funds that were actually expended as of the date of the report. Questioned Costs: None. Recommendation: The person preparing the Project and Expenditure Report should reconcile the expenditures reported to the Town Accountant?s general ledger. The amounts expended and not reported should be included on the next annual Project and Expenditure Report. Views of Responsible Officials and Planned Corrective Action: The Town agrees with the finding, and we have implemented procedures to correct the issue. At the time of the reported finding, reporting guidance was unclear and it had not yet been determined whether the Town qualified for a revenue loss which resulted in the error. The corrective action will be to report the additional expenditure that occurred prior to Town declaring a revenue loss at the time of the next reporting cycle. This corrective action will satisfy the criteria of recipients being required to report information on financial data, projects funded, expenditures, and contracts and subawards over $50,000, and other information. The financial data and expenditures reported will then reflect the financial activity and expenditures on the municipal general ledger.