Finding Text
2022-005-Reporting Federal Agency: U.S. Department of the Treasury Federal Program Name: Covid-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number: Z1890 Award Period: March 3, 2021 through December 31, 2026 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The U.S. Treasury Department's current version of its Coronavirus State and Local Fiscal Recovery Funds Guidance on Recipient Compliance and Reporting Responsibilities (collectively, the "SLFRF Guidance") provides information on the reporting requirements of the program. During the audit period, the Interim Report and quarterly Project and Expenditure Reports were required under this guidance. Condition: The quarterly Project and Expenditure Reports contain key line items under the following three subcategories: 1) Obligations and Expenditures, 2) Subawards, and 3) Detailed information on any loans issued; contracts and grants awarded; transfers made to other government entities; and direct payments made by the recipient that are greater than $50,000. Questioned costs: N/A Context: The auditors selected and tested a statistically valid sample of 10 organizations reported on the interim report and all 4 quarterly reports until a total sample of 40 items were tested. See the chart below for identified exceptions. Exception Type Number of Items Tested Number of Exceptions Missing key line-item data excluded from quarterly report 8 8 Entity type (subrecipient, beneficiary, contractor) reported was not accurate 40 23 Expenditure amount did not agree to schedule of expenditures 40 6 Obligated amounts per Organization?s contract did not agree with value reported as obligated on quarterly reports 40 40 Obligated amount was not reported in a timely manner 40 2 Cause: The key personnel assigned to reporting did not fully understand the distinction between subrecipients, contractors, and beneficiaries. Additionally, the nuances of the reporting portal caused errors for reporting obligations verse expenditures and therefore obligations reported had errors. Effect: Inaccurate data reported to the Treasury could impact the allowed funding the County can earn for these funds. Repeat Finding: No. Recommendation: We recommend corrections to quarterly reports be made in subsequent quarterly reports to ensure obligations match actuality. We recommend timely reconciliation of accounting transactions to allow for accurate reporting of expenditures through the quarter. Additionally, we recommend careful consideration of assignment for type of entity for which the County enters transactions with related to this funding. Views of responsible officials: There is no disagreement with the audit finding.