Finding 479524 (2022-003)

Finding 2022-003 – Reporting U.S. Department of Treasury COVID-19 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) – ALN 21.027 Reporting Condition: The internal control system to ensure that the Project and Expenditure Report submitted to Treasury was accurate was not operating effectively. The County reported total expenditures on the Quarter 2 2022 Project and Expenditure Report of $4,196,958 and reported expenditures on the schedule of expenditures of federal awards of $4,909,868. Criteria: Quarterly reports are required to be accurate and include all activity of the reporting period, supported by the applicable accounting records, and fairly presented in accordance with Treasury requirements. The reports are to include the current period expenditures, as well as the cumulative expenditures related to the projects. Cause: Internal controls in place to ensure that the quarterly reports were completed accurately were not adequate. Effect: The quarterly reports submitted to Treasury do not contain information supported by the accounting records of the County. Questioned Costs: Unknown. Identification as a Repeat Finding: This is not a repeat finding from the prior audit. Recommendation: We recommend the County implement a procedure to ensure that all required quarterly reports are completed accurately, and verify that the expenditures agree to the amounts reported in the general ledger and schedule of expenditures of federal awards. In addition, we recommend that the County ensure proper correction of previously submitted reports. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding. See separate Corrective Action Plan.