Finding Text
2022-006-Revenue Loss Calculation 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 Coronavirus State and Local Fiscal Recovery Funds (CSLFR) provide needed fiscal relief for recipients that have experienced revenue loss due to the onset of the COVID-19 public health emergency. Specifically, SLFRF funding may be used to pay for ?government services? in an amount equal to the revenue loss experienced by the recipient due to the COVID-19 public health emergency. Government services generally include any service traditionally provided by a government, including construction of roads and other infrastructure, provision of public safety and other services, and health and educational services. Funds spent under government services are subject to streamlined reporting and compliance requirements. In order to use funds under government services, recipients should first determine revenue loss. The Treasury's final rule provides the guidance for how revenue loss is calculated. Condition: The revenue loss calculation was not calculated in accordance with the guidance provided by the Treasury?s Final Rule. Questioned costs: N/A Context: The original revenue loss calculation allowed for loss revenue provisions of approximately $31 million. The corrected and revised calculation was approximately $29 million. Cause: The key roles assigned to doing this calculation experienced turnover. In addition, certain accounts were included in the calculation that should not have been included resulting in a lower loss revenue amount. Effect: The original calculation resulted a Coronavirus State and Local Fiscal Recovery Funds budget that included an amount for revenue loss that was higher than what is allowable by the Treasury?s Final Rule. Repeat Finding: No. Recommendation: We recommend the County designate a reviewer to perform a detailed review of future revenue loss calculations to ensure the calculation complies with the requirements of the Treasury?s Final Rule. Views of responsible officials: There is no disagreement with the audit finding.