Finding Text
2023-006 Reporting
Prior Year Finding Number: N/A
Year of Finding Origination: 2023
Type of Finding: Internal Control Over Compliance and Compliance
Severity of Deficiency: Significant Deficiency and Other Matter
Federal Agency: U.S. Department of the Treasury
Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds
Award Number and Year: Federal Direct; 2022
Pass-Through Agency: N/A – Direct
Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must maintain internal control over federal programs that provides reasonable assurance that the auditee is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.
The U.S. Department of the Treasury requires submission of an annual Project and Expenditure Report for Coronavirus State and Local Fiscal Recovery Funds (SLFRF) that includes current period expenditures.
Condition: The County understated current period obligations and expenditures reported on the annual Project and Expenditure Report submitted to the U.S. Department of the Treasury by $139,040 in accrued expenditures for a project designated as SLFRF funded. Additionally, the County does not have a process in place to review the Project and Expenditure Report prior to submission.
Questioned Costs: None
Context: The County opted to spend the SLFRF award under the Revenue Replacement category, which allows spending on broader types of government services.
The annual Project and Expenditure Report is required to be submitted to the U.S. Treasury by April 30 of each year for the reporting period ending March 31.
Effect: The County is not in compliance with federal reporting requirements.
Cause: The County indicated difficulty tracking project expenditures due to staff turnover.
Recommendation: We recommend the County review the U.S. Department of the Treasury’s guidance and form instructions to ensure accurate reporting of SLFRF activity. Additionally, the annual Project and Expenditure Report should be reviewed prior to submission.
View of Responsible Official: Acknowledge