Finding Text
Assistance Listings number and name: 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Fund Award number and years: SLFRP2144, March 3, 2021 through December 31, 2026 Federal agency: U.S. Department of Treasury Compliance requirement: Reporting Questioned costs: Not applicable Condition?Contrary to County policies and procedures, the County?s Finance Department did not review and approve all 4 federal program reports (progress reports), including 1 interim and 3 project and expenditure reports, before submitting them to the federal agency. Specifically, the Department was advanced $21,545,688 of program monies, and of this amount, the Department reported expenditures totaling $10,035,175 in progress reports as of June 30, 2022. However, the Department did not perform an independent review and approval of these required progress reports to ensure the $10,035,175 of reported expenditures was accurate, agreed to County records, and contained only allowable expenditures. Effect?Although we noted no errors on these reports, there is an increased risk that the Department may not prevent or detect and correct errors on reports it submits to the federal agency, which relies on them to effectively monitor the County?s program administration, including its compliance with program requirements and ability to prevent and detect fraud, and to evaluate the program?s success. Cause?While the Department was aware of County policies and procedures requiring it to perform an independent review and approval of the program?s reports before submitting them to the federal agency, the Department reported that it prioritized identifying allowable projects for the program and forgot to implement a process to review and approve the interim report and first 2 project and expenditure reports. Further, the Department reported that while it reviewed the third and final project and expenditure report, it did not maintain documentation of that review and approval. Criteria?The County?s policies and procedures require departments to perform an independent review and approval of all federal award transactions and reports for accuracy before submitting them to the federal agency (Navajo County. [2019]. Fiscal Policy Manual, Section 4.9). Also, federal regulation requires establishing and maintaining effective internal control over federal awards that provides reasonable assurance that federal programs are being managed in compliance with all applicable laws, regulations, and award terms (2 CFR ?200.303). Recommendations?The Department should follow the County?s policies and procedures requiring it to perform and document an independent review and approval of all federal program reports before submitting them to the federal agency to ensure the reports are accurate, agree to County records, and contain only allowable expenditures. The County?s corrective action plan at the end of this report includes the views and planned corrective action of its responsible officials. We are not required to audit and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy.