Finding Text
FINDING 2023-004
Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting
Federal Agency: Department of the Treasury
Federal Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds
Assistance Listings Number: 21.027
Federal Award Number and Year (or Other Identifying Number): FY 2023
Compliance Requirement: Reporting
Audit Finding: Material Weakness
Repeat Finding
This is a repeat finding from the immediately prior audit report. The prior audit finding number was
2022-004.
Condition and Context
Recipients are required to submit quarterly or annually Project and Expenditure (P&E) reports to
the U.S. Department of the Treasury (Treasury). The reporting periods, as well as the respective due dates,
are based upon type of recipient and its population, as well as the recipient's allocation amount. Information
to be reported includes projects funded, expenditures, and contracts for the appropriate reporting period.
The County was classified as a county with a population below 250,000 residents that received an
allocation of less than $10 million in State and Local Fiscal Recovery Funds. As such, the P&E report,
covering the period from April 1, 2022 to March 31, 2023, was required to be submitted to the Treasury by
April 30, 2023.
The County submitted the P&E report by April 30, 2023, as required; however, there were no
internal controls in place that would likely be effective in preventing, or detecting and correcting, noncompliance
related to the P&E report. The County Auditor prepared and submitted the report without an
oversight or review process.
The lack of internal controls was a systemic issue throughout the audit period.
Criteria
2 CFR 200.303 states in part:
"The non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides
reasonable assurance that the non-Federal entity is managing the Federal awards in
compliance with Federal statutes, regulations, and the terms and conditions of the Federal
award. These internal controls should be in compliance with guidance in 'Standards for
Internal Control in the Federal Government' issued by the Comptroller General of the
United States or the 'Internal Control Integrated Framework', issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO). . . ."
Cause
The County did not implement an effectively designed system of internal controls over reporting.
There was no indication of internal controls in place over reporting.
INDIANA STATE BOARD OF ACCOUNTS
20
MIAMI COUNTY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(Continued)
Effect
Without the proper implementation of an effectively designed system of internal controls over
reporting, the County cannot ensure that the reports submitted are materially accurate and correct. If there
was a proper implementation of an effectively designed system of internal controls over reporting, the
County would have been able to detect any errors prior to submission.
Questioned Costs
There were no questioned costs identified.
Recommendation
We recommended that management of the County design and implement a proper system of
internal controls, including policies and procedures to ensure that the County provides the Treasury with
complete and accurate information for the P&E report.
Views of Responsible Officials
For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.