Finding Text
US Department of Treasury Passed through the NC Department of Health and Human Services Program Name: Coronavirus State and Local Fiscal Recovery Fund AL #: 21.027 Finding: 2022-004 Lack of General Compliance Policies SIGNIFICANT DEFICENCY Internal Control Criteria: In accordance with the U.S. Department of Treasury 31 CFR Part 35, Coronavirus State and Local Fiscal Recovery Funds Final Rule and the Uniform Guidance, General Financial Management Internal Controls, Eligible Projects Determination & Documentation Policy, Cost Principles/Allowable Costs Policy, Civil Rights Compliance / Nondiscrimination Policy, Records Retention Policy, and Conflict of Interest are required to be adopted as condition of receiving the funds. Condition: The County did not adopt and implement the following policies for Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) expenditures: Eligible Use, Allowable Costs, and Civic Right Compliance. Effect: The County could have used the funds for activities and costs that were prohibited by the Final Rule. Cause: County oversight of the new federal grant requirements for the CSLFRF expenditures to have the stated policies in place. Recommendation: The county management should review the award terms and conditions, and the Uniform Guidance more carefully to ensure all compliance requirements are met. Views of responsible officials and planned corrective actions: The County agrees with the finding.