Finding 505399 (2023-003)

2023SA-003 Insufficient Grant Monitoring Federal Agency/Passthrough Agency: US Department of Treasury Program: Coronavirus State and Local Fiscal Recovery Fund- American Rescue Plan Act Federal Award Number: N/A Assistance Listing Number: 21.027 Material Weakness Material Noncompliance – Financial Management Criteria: 2 CFR 200.302 states that the Grantee must have an accounting system that provides accurate, current, and complete disclosure of all financial transactions related to each state and federally funded program. Accounting records must contain information pertaining to state and federal pass-through awards, authorizations, obligations, unobligated balances, assets, outlays, and income. The records must be maintained on a current basis and balances at least quarterly. Condition: The accounting records for the ARPA grant included $328,600 of expenses that were not reported on the annual grant report filed in March 2024. Context: From reviews of the County’s internal control and accounting procedures along with inquiries made, it was indicated that there was a high probability that transactions were not reported correctly. There is no review process in place. Effect: Inaccurate reporting of grant activity. Questioned Costs: None. Cause: There is a systematic problem with lack of adequate documentation and monitoring of expenses paid for with grant funds throughout the County. The County needs to be able to compile a complete list of grants for the entire County and monitor that the grant activity is property reported. The County needs to have a better understanding of grant reporting requirements, grant restrictions, and compliance requirements. Repeated Finding: No Recommendation: The County should have someone review grant reports prior to their submission. Management’s Response: The County will work to improve grant documentation and will consider implementing a review process to ensure the grant records agree to grant reports that are filed.