Finding 400984 (2023-002)

2023-002 U.S. Department of Treasury COVID-19 - Coronavirus State and Local Fiscal Recovery Funds, Federal Financial Assistance Listing 21.027, Award Year – Fiscal Year 2021 and 2022 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: Code of Federal Regulation requirements under 2 CFR 200 require the establishment and maintenance of an effective internal control system over Federal Awards. Reports submitted to the federal awarding agency should include all activity of the reporting period, are supported by underlying accounting information or performance records, and are fairly presented in accordance with U.S. Department of Treasury requirements. Elko County is required to submit the Project and Expenditure Reports quarterly. The following are key line items on the Project and Expenditure report: current period obligation, cumulative obligation, current period expenditure, cumulative expenditure, subawards, and detailed information on loans issued. Condition: We noted the County did not correctly include the quarterly expenditures for amounts related to items reported under loss of revenue for each quarter in the fiscal year. Cause: The County did not have adequate internal controls for accurate reporting. Effect: Inaccurate information may be reported to the federal awarding agency. Questioned Costs: None reported. Context/Sampling: All reports submitted during the year were tested. Repeat Finding from Prior Year: No. Recommendation: We recommend Elko County enhance internal controls to ensure its reports are accurately prepared prior to submission. Views of Responsible Officials: Management will closely review the Project and Expenditure Report User Guide to ensure future reports are in compliance and are properly reviewed prior to submission.