Finding Text
2022-001 Improve Controls and Compliance Over Reporting Federal Program Information Federal Agency: U.S. Department of the Treasury Cluster/Program: None Award Name: COVID-19 Coronavirus State and Local Fiscal Recovery Fund AL Number(s): 21.027 Award Year: 2021 Compliance Requirement: Reporting Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement A grantee is required to report financial information to the grantor agency in accordance with the requirements set forth by the federal awarding agency. In addition, the Coronavirus State and Local Fiscal Recovery Fund requires special reporting with annual project and expenditure reports. At a minimum, the report must include financial data for current period obligation, cumulative obligation, current period expenditure, and cumulative expenditures by project. Management of the County is also responsible for establishing and maintaining effective internal control over compliance with Federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context The annual project and expenditure report that was submitted for the period ended March 31, 2022 did not report project expenditures that were in process, including current period obligations, cumulative obligations, current period expenditures, cumulative expenditures, project status, and project description, as required by the terms of the grant agreement. Cause Weaknesses in the design and operation of controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, the County is not in compliance with reporting requirements. No questioned costs are reported, as this is a procedural finding. Recommendation The County should address the weaknesses in internal controls noted above in order to com?ply with the requirements of the Uniform Guidance. The County should also include all expenditures through the reporting period in the annual project and expenditure report, in compliance with the grant agreement. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management?s corrective action plan is included at the end of this report after the summary schedule of prior year audit findings.