Finding Text
Finding 2021-104 Allocation of Coronavirus Relief Funds Funds
(Material Weakness, Compliance Finding)
Assistance Listing Number: 21.019
Cluster Title: N/A
Program Titles: Coronavirus Relief Funds
Federal Agency: U.S. Department of Treasury
Award Year: 2020
Award Number: None
Compliance Requirement: Allowable Costs
Question Costs: $2,460,485
Criteria: Coronavirus Relief Fund Guidance for State, Territorial, Local and Tribal Governments as
provided by the Department of Treasury indicates that grant expenditures should be used for
expenditures not accounted for in the budget most recently approved. The funds may be used for
payroll and related expenses of public employees that are not substantially dedicated to mitigating
or responding to the Covid-19 public health emergency. However, the County should allocate
expenses consistently within the County’s policies using timesheets or other means of tracking
actual time spent on the activities related to responding to the Covid-19 public health emergency.
Condition and context: The County used overall accounting data when allocating payroll and
related expenses to the Coronavirus relief grant. The County first applied the grant funds to
departments that met the definition of substantially dedicated employees. As there was remaining
funds awarded the County applied the remaining funds to departments that would not meet the
definition of substantially dedicated. These departments included the County attorney, constables,
clerk of the court, probation and justice of the peace courts. The County did not maintain sufficient
documentation to substantiate that employees within these departments were providing services
relating to responding to the Covid-19 public health emergency. Expenses were not adequately
defined by actual employee or pay period. Instead general payroll expenses were allocated from the
departments identified. The total expenses allocated to the grant that did not meet the definition of
substantially dedicated were $2,460,485.
Cause: The County received guidance from the pass-through agency indicating that they could
apply grant funds to the departments indicated. The County relied on this guidance when
determining how to use the remaining funds, without first obtaining an understanding of the U.S.
Department of Treasury requirements for the program.
Effect: The effect is that the County did not expend a portion of the grant monies in accordance with
the Treasury department guidance. There was not adequate documentation maintained to ensure
that expenses were used for allowable purposes as intended by the grant.
Recommendation: We recommend that the County establish policies and procedures to ensure
that grant funds are used in accordance with grant agreements and other guidance. Adequate
documentation should be maintained to ensure that expenses are substantiated and supported.
County’s Response: The County’s responsible officials’ views and planned corrective action are in
its corrective action plan at the end of the report.