Finding 624993 (2022-004)

Program: COVID-19 Coronavirus State & Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Grantor Agency: Wisconsin Department of Treasury Criteria: Based on 42 USC 802 and 803 as implemented by the Treasury's Interim Final Rule and Final Rule at 31 CFR Part 35, recipients of the Coronavirus State and Local Fiscal Recovery Funds are required to submit special reporting on an annual basis. This reporting is to include current period obligations, cumulative obligations, current period expenditures and cumulative expenditures for each project. Appropriate review of the reporting should be sufficient to correct errors prior to finalizing the report. Condition: The annual report overstated expenditures to date and review of the report specifically was not documented nor did it discover this error. Cause: The March 2022 annual report was the first report that covered a period of time involving actual expenditures rather than obligations only. There was a misunderstanding of how to complete the report. Effect: Users of the annual report may incorrectly believe that total expenditures for two of the projects had more expenditures as of the reporting date than what the county actually incurred. Questioned Costs: None. Context: There was only one report required during the current year and two of the seven projects reported included erroneously overstated expenditures. The County reported planned expenditures rather than only reporting actual incurred expenditures. The sample was not statistically valid. Recommendation: We recommend that the County review the reporting requirements and implement proper review of the annual reporting process. Someone other than the preparer of the report should provide adequate review prior to finalizing the report. This review should include verification that reported expenditure totals agree to the underlying general ledger detail as of the report date. These procedures should be documented and retained. Views of responsible officials: The responsible officials acknowledge this finding is accurate. The County Accountant will provide documentation of the amounts to report that matches the general ledger detail for Nick Trimner, County Administrator, to review and date prior to recording the annual report.