Finding Text
1. Reporting
Finding Number: 2023-002
Assistance Listing Number and Title: AL # 21.027 Coronavirus State and Local Fiscal Recovery Funds
Federal Award Identification Number / Year: 2023
Federal Agency: U.S. Department of Treasury
Compliance Requirement: Reporting
Pass-Through Entity: N/A
Repeat Finding from Prior Audit? No
Material Weakness and Noncompliance
2 CFR § 1000.10 gives regulatory effect to Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, set forth at 2 CFR part 200 for the Department of Treasury.
2 CFR 200.328 (b) provides that The Federal agency or pass-through entity must collect financial reports no less than annually. The Federal agency or pass-through entity may not collect financial reports more frequently than quarterly unless a specific condition has been implemented in accordance with § 200.208. To the extent practicable, the Federal agency or pass-through entity should collect financial reports in coordination with performance reports.
31 CFR 35.4(c) requires recipients, in part, during the period of performance, to provide the Secretary of the U.S. Department of Treasury periodic reports providing detailed accounting of the uses of funds, modifications to a State or Territory's tax revenue sources, and such other information as the Secretary may require for the administration of this section.
The U.S. Department of Treasury provided supplementary information on reporting requirements in its interim final rule for State and Local Fiscal Recovery Funds for 31 CFR Part 35 and provided further guidance in its Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guide. 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 are required to submit Project and Expenditure Report by April 30, 2022, and then annually thereafter.
The County submitted the required Project and Expenditure Report on April 10, 2023, which is within the required timeframe. However, due to the failure of existing controls, the expenditures reported did not agree to the accounting records due to $1,210,069 identified as loss of revenue being excluded from Project and Expenditure Report. Reporting errors could adversely affect future grant awards.
Additional controls should be implemented to help ensure accuracy of the reports.
Officials’ Response: See Corrective Action Plan.