Finding 6772 (2022-006)

Criteria and Condition: Internal controls should be designed and implemented to ensure compliance with reporting requirements, including the submittal of accurate and timely reports. We noted no internal controls were in place that could be tested, such as documented evidence that reports were reviewed and approved prior to being submitted. The Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program requires program and expenditure reports to be submitted on a quarterly basis. Quarterly reports for 2022 were due on (Q1) April 30, 2022, (Q2) July 31, 2022, (Q3) October 31, 2022, and (Q4) January 31, 2022. The program and expenditure reports for the 3rd and 4th quarters were not submitted on time as they were submitted on November 1, 2022 and February 10, 2022, respectively. Cause and Effect: Controls were not suitably designed to ensure reports are submitted in a timely manner. Additionally, the reports for the first three quarters were being prepared by the County’s Budget Office. For the 4th quarter report, the County Auditor’s Office took over the preparation of these reports as the Budget Office experienced employee turnover. There was a delay in gaining access to the U.S. Treasury portal which delayed the completion and submittal of the report. The untimely submittal of reports results in noncompliance with the terms of the federal award program. Questioned Costs: None Repeat Finding from Prior Year(s): N/A Recommendation: We recommend internal controls be implemented to include a review and approval of the required reports prior to submittal. The review and approval should be documented by being signed and dated by the preparer and reviewer. We also recommend reports be submitted by the required deadlines. Views of Responsible Officials: See management’s corrective action plan.