Finding Text
2022-002 Reporting Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of 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: U.S. Treasury requires an annual Project and Expenditure Report submitted for Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) that include current period expenditures. 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. Condition: The County incorrectly reported the full CSLFRF award amount of $6,484,839 as expenditures on the Annual Project and Expenditure report submitted to the U.S. Treasury for 2022 when they should have reported $0. The Annual Project and Expenditure Report due in April 2022, was for the reporting period ending March 31, 2022. Questioned Costs: $6,484,839. Context: The County opted to spend the CSLFRF?s award under the Revenue Replacement category which allows spending on broader types of government services. Effect: Noncompliance with federal reporting requirements. Cause: County staff responsible for completing and submitting the Annual Project and Expenditure report misinterpreted the guidance and reported planned expenditures versus actual expenditures under revenue replacement, even though no expenditures were incurred as of March 31, 2022. Recommendation: We recommend the County review U.S. Department of the Treasury guidance and form instructions to ensure it is correctly reporting its CSLFRF activity. In addition, the County should maintain documentation to support data reported. View of Responsible Official: Acknowledged