Finding Text
2022 – 004 Reporting
Federal Agency: U.S. Department of Treasury
Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Federal Award Identification Number and Year: SLFRP3738 11/30/2021
Award Period: March 3, 2021 through December 31, 2024
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include ensuring the reported projects and expenditures accurately reflect what is reported in the expenditure detail.
Condition: While the correct expenditures were reported on the schedule of expenditures of federal awards, the expenditure report filed during the year did not accurately report project details, including amounts expended and subrecipient entity types as contractors, beneficiaries, or subrecipients. In addition, there is no formal documentation of the review being completed by the County Administrator in accordance with the County’s internal control procedures.
Questioned costs: None
Context: The County incorrectly reported current projects and expenditures in 3 of 3 reports tested.
Cause: Subaward and subrecipient types were not clearly distinguished. Revenue replacement reported was based on the full $10,000,000 lost revenue election, and not amounts of the revenue replacement used for expenses incurred through the reporting date. These details were inaccurately reported due to unclear instructions. There was no documentation of review and approval by a County Administrator.
Effect: Noncompliance with reporting requirements.
Repeat Finding: No
Recommendation: We recommend the County strengthen its review procedures over reports and ensure the review is documented. The reports should include project expenditures incurred during the period and all applicable data elements.
Views of responsible officials: There is no disagreement with the audit finding.