Finding 389664 (2023-002)

Criteria: Under Title 2 CFR 200.327 and 200.328, Financial reporting, and grant contract conditions require a non-federal entity direct recipient to report on federal awards and include all activity of the reporting period on a quarterly basis, and be supported by applicable accounting or performance records, and are fairly presented in accordance with applicable governing requirements. Condition/Context: We tested two quarterly reports and noted that neither of the Project and Expenditure Report reports tied to supporting detail schedules of expenditures accumulated. Cause: The individuals preparing the reports did not have the proper knowledge and understanding to perform those duties. Effect: The County was not able to file correct quarterly reports in compliance with federal regulations and contained material errors. Without a centralized system of internal controls that includes documentation and preparation by an individual with the required skills and knowledge, review and timely reconciliation of reported expenditures and amounts reported to federal agencies may be inaccurate. Question costs: None. Repeat finding: No. Recommendation: We recommend the County assigns a knowledgeable individual with proper training and skill to complete the reports, ensuring that the reviewer also ties the reports to the support before sending to federal agencies. Views of Responsible Officials: The County has restructured the duties of the Finance office to ensure the staff with the most appropriate knowledge base is performing the duties that are new or unusual while providing the training necessary to ensure that the source work is done in a way that supports the appropriate reporting outcomes.