Finding Text
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: 1505-0271; 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: The expenditure report filed during the year did not accurately report project details, including amounts expended, subaward types as contractors and grants, loans, transfers, or direct payments to individuals, subrecipient entity types as contractors, beneficiaries, or subrecipients, and amounts of lost revenue elected to be used for the period required. In addition, there is no formal documentation of the review being completed by the ARPA committee in accordance with the County?s internal control procedures. Questioned costs: None Context: The County incorrectly reported current projects and expenditures in 1 of 1 reports tested. Cause: Reported projects and expenditures were based on projects and projects cost that had been approved by resolution by the ARPA committee and County Board, and not what had actually been incurred through the reporting date. Subaward and subrecipient types were not clearly distinguished and lost revenue amounts taken were not indicated. These details were inaccurately reported due to unclear instructions. There was no documentation of review and approval by a department head or the ARPA committee. Effect: While correct expenditures were reported on the schedule of expenditures of federal award for the year ended November 30, 2022, the interim period reporting for the period ended March 31, 2022 included obligations in the amount reported as expended, This could result in costs being questioned interperiod Repeat Finding: No Recommendation: We recommend the County strengthen its review procedures over reports and ensure the review is documented. Views of responsible officials: There is no disagreement with the audit finding.