Finding Text
Finding 2022-002: Reporting Material weakness in internal control over Reporting and Noncompliance U.S. Department of Treasury; Coronavirus State Local Fiscal Recovery Funds (SLFRF) passed through Fresno County. AL No. 21.027. Questioned Cost: Not applicable How the Questioned Cost was Computed: Not applicable Condition: The FCFPD did not submit the required quarterly program Expenditure Report, Annual Performance Report or the Final Report. Criteria: The conditions of the Award include 3 reporting requirements as follows: A. Quarterly Program Expenditure Report: Submit to Fresno County in writing at the execution of the Agreement, Quarterly Program Expenditure Reports through the term of the Agreement. The reports shall contain, but are not limited to, the information described in Exhibit C of the Agreement and must include a statement, signed by FCFPD, indicating that all expenditures in the report comply with the Interim Rule and the Final Rule, as applicable, and ARPA guidelines for the SLFRF, as set forth by the Department of Treasury. Quarterly expenditure reports shall be submitted to Fresno County no later than fifteen (15) days after the end of each quarter listed below for the term of this Agreement, beginning with the first quarter ending after the effective date. B. Annual Performance Report: Within fifteen (15) days after each June 30, FCFPD shall submit one "Annual Performance Report" to the Fresno County, covering all performance by FCFPD under the Agreement for the fiscal year ending that June 30. The report shall contain, but not limited to, the information contained in Exhibit D of the Agreement. C. Final Report: A Final Program Report shall be submitted to Fresno County within thirty (30) days upon completion of the Program. A Final Report shall include an accounting of all costs and expenses incurred by FCFPD, and any other information as the Fresno County deems necessary to facilitate closeout of the Program, and ensure Fresno County's obligations and requirements under the SLFRF Program are met. The Final Program Report is not complete until Fresno County has delivered to FCFPD written acceptance of the Final Program Report. Cause: Internal controls over preparation of complete and accurate reporting were not properly designed to ensure reports are submitted accurately and timely. Effect: Required reports were not submitted. Recommendation: C&M recommends that FCFPD develop and implement a more robust system for the preparation and submission of reporting. The process should include a monitoring of all award contracts for reporting and other compliance conditions and perhaps a secondary review and approval of the report and underlying data by somebody other than the preparer. View of Responsible Officials: Management agrees with the finding and has provided the accompanying corrective action plan