Finding Text
Criteria: 2 CFR Part 200 requires that nonfederal entities must establish and maintain effective internal control over federal awards to provide reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the specific award. The financial management system of each nonfederal entity must provide accurate, current, and complete disclosure of the financial results of each federal award in accordance with grant requirements. Condition During our testing of the County’s compliance with the reporting requirements of the Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”), we noted the following instances of noncompliance: Out of four (4) quarterly reports tested, the quarterly Project and Expenditure Report for the quarter ended September 30, 2023 was not submitted by the due date of October 31, 2023 and the quarterly Project and Expenditure Report for the quarter ended December 31, 2023 was not submitted by the due date of January 31, 2024 (the end of the month following the end of the quarter). Also, the County' annual performance report, which was due on July 31, 2024, was not submitted until August 5, 2024. Cause: The County’s internal controls over compliance were not sufficient to prevent noncompliance with the terms of the CSLFRF grant. Effect: The County did not meet the timely reporting requirements of the CSLFRF grant. Recommendation: We recommend that the County design controls to ensure an adequate process is in place to submit required reports for federal grants by the deadlines set forth in the terms of the grant award. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. We will work to ensure that future reports are submitted timely and that evidence of submissions is retained for each report filing.