Finding Text
2023-001 U.S. Department of the Treasury
COVID-19 – Coronavirus State and Local Fiscal Recovery
Funds - CFDA 21.027
Criteria: Per 2 CFR section 200.328 of the Uniform Guidance, each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the federal awarding agency.
The compliance supplement identifies four Key Line Items required to be reported to the federal awarding agency which include (1) current period obligation, (2) cumulative obligation, (3) current period expenditure and (4) cumulative expenditure.
Condition: As of the March 31, 2023, reporting date, the Town understated its expenditures by approximately $1,132,000 and did not report any obligations for contracted amounts not spent.
Cause: The Town removed the amounts from the previously submitted report and only included current year information.
Effect: The Town’s reporting is understated.
Questioned Costs: None
Repeat Finding from Prior Year: Yes; Finding 2022-001
Recommendation: The Town should implement procedures to reconcile the financial information in the Project and Expenditure reports to the Town’s general ledger and purchasing files before submission.
Views of Responsible Official: Management agrees with the finding.