Finding Text
GENERAL INFORMATION: Grant Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Year: 2024 Federal Agency: Department of Treasury CONDITION: We noted that two quarterly Project and Expenditure Reports submitted by Putnam County Commission to the U.S. Treasury excluded $607,026 of expenditures that occurred during the reporting period. CRITERIA: U.S. Department of the Treasury Compliance and Reporting Guidance, State and Local Fiscal Recovery Funds, Part 2: Reporting Guidance, B. Project and Expenditure Report, 2. Annual Reporting states, in part: "The following recipients are required to submit annual Project and Expenditure Reports: ...Metropolitan cities and counties with a population below 250,000 residents that are allocated less than $10 million in SLFRF funding and NEUs that are allocated less than $10 million in SLFRF funding." U.S. Department of the Treasury Compliance and Reporting Guidance, State and Local Fiscal Recovery Funds, Part 1: General Guidance, D. Uniform Administrative Requirements, 10. Reporting states, in part: "…Expenditures may be reported on a cash or accrual basis, as long as methodology is disclosed and consistently applied. Reporting must be consistent with the definition of expenditures pursuant to 2 CFR 200.1. Your organization should appropriately maintain accounting records for compiling and reporting accurate, compliant financial data, in accordance with appropriate accounting standards and principles..." QUESTIONED COSTS: $0 CAUSE: Procedures were not in place to ensure all qualifying State and Local Fiscal Recovery Funds expenditures were reported on the quarterly Project and Expenditure Reports submitted to the U.S. Treasury. EFFECT: Management excluded expenditures incurred during the periods covered by the Project and Expenditure Reports. This necessitated an adverse opinion. REPEAT FINDING: No RECOMMENDATION: The Putnam County Commission is directed to review these regulations and comply with the provisions set forth therein. Expenditures reported on the quarterly Project and Expenditure Report should be cross-referenced to accounting ledgers prior to submission. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: The County Commission will ensure all expenditures are properly reported to the governing entity during the proper reporting period.