Finding 501557 (2023-003)

Federal Agency: US Department of the Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Fund Assistance Listing Number: 21.027 Federal Award Identification Number and Year: Unknown Pass-Through Agency: n/a Pass-Through Number(s): n/a Award Period: 3/3/2021-12/31/2026 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Review of reports and supporting documentation by someone other than the preparer prior to submitting the report is an internal control intended to prevent or decrease the occurrence of errors. Condition: The County Finance Director maintains a spreadsheet of all approved projects and costs to date and shares this file with the County Administration and Finance Committee on a monthly basis. The spreadsheet is used as the basis for the annual Project and Expenditure Report due in April. There was no review by someone other than the preparer of the report prior to its submission to the federal government. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned Costs: None Context: While performing audit procedures, it was noted that no one reviewed the report prior to submitting the report to the federal government. The report was reviewed one month after submission by the County Manager /Administrative Coordinator. Cause: The County does not have a review process in place to catch errors in reporting, or to verify that the amounts reported match supporting documentation prior to the report being submitted to the federal government. Effect: The report submitted by the County may contain errors that would not be detected. Reported expenditures may not reconcile to County's general ledger and amounts may be over or under reported. Repeat Finding: No. Recommendation: We recommend the County develop and implement a process to require review and approval of all required reports prior to the submission of the report to the federal government to help ensure that the data reported are accurate and complete. View of Responsible Officials: There is no disagreement with the audit finding.