Finding Text
Finding: Reporting
U.S. Department of the Treasury, passed through the County of Victoria
Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds – 21.027
Criteria or Specific Requirement: According to the 2021 Interim Final Rule, 2022 Final
Rule, 2023 Interim Final Rule, and Obligation Interim Final Rule at 31 CFR Part 35,
Subpart A, recipients of Coronavirus State and Local Fiscal Recovery Funds (SLFRF)
are required to accurately report the amounts expended in their progress reports. The
reported amounts should reflect the total expenditures on an accrual basis, as specified
in the grant agreement and the compliance supplement.
Condition: The Medical Center had discrepancies between the amounts reported in the
quarterly progress reports and the actual expenditures. Specifically, the amounts reported
in the progress reports did not accurately reflect the total expenditures incurred during the
reporting period by $368,111.
Questioned Costs: None
Context: We tested the four reports submitted during the reporting period to determine
whether each report was completed timely and accurately and performed in compliance
with the grant agreement and U.S. Department of the Treasury guidelines. Of the four
reports tested, one report contained discrepancies between the amounts reported in the
quarterly progress reports and the actual expenditures. Specifically, the Medical Center
reported the "Total ARPA SLFRF Funds Expended to Date" for both Progress Reports 8 and
9 as $219,505. However, Progress Report 9's actual "Total ARPA SLFRF Funds Expended
to Date" totaled $587,615.46, resulting in a variance of $368,110.85 on the progress
report. The error was identified by management in the following quarter, and Report 9
was subsequently amended by the Medical Center to report the corrected amount.
Effect: The Medical Center submitted a required report with a material error in reported
information. Federal oversight agencies, including the U.S. Department of the Treasury and
the County of Victoria, depend on accurate reporting to ensure proper spending of the award
and compliance with payment terms and conditions.
Cause: The Medical Center did not have adequate controls or procedures in place to identify
the applicable reporting requirements and ensure the required reports for federal awards
include all activity of the reporting period, are supported by applicable accounting or
performance records, and are fairly presented in accordance with the Uniform Guidance.
Identification as a Repeat Finding: Not applicable
Recommendation: We recommend policies and procedures over federal grant reporting be modified to ensure required reports are properly and accurately completed using the correct financial information. In addition, we recommend all underlying supporting calculations be reviewed for completeness and accuracy.
Views of Responsible Officials and Planned Corrective Actions: The Medical Center
agrees with the finding. See separate report for planned corrective action.