Finding 945685 (2023-001)

2023‐001 Department of the Treasury FFAL #21.027 COVID‐19 ‐ Coronavirus State and Local Fiscal Recovery Funds Applicable Federal Award Number and Year – SLFRP0515 for 2021 Reporting Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The County’s quarterly Project and Expenditure Reports were not reviewed and approved by a separate individual outside of the preparer. The reports submitted in fiscal year 2023 did not contain obligation and expenditure information for $10,000,000 in revenue replacement expenditures allocated to fiscal year 2023 eligible employee wages. Cause: The County did not have an internal control process in place to ensure a secondary review and approval of the Project and Expenditure Reports. Effect: Without a secondary review and approval, there is a greater possibility that the reports may not be accurately completed. Questioned Costs: None reported. Context: A nonstatistical sample of two out of the four quarterly Project and Expenditure Reports were tested. Repeat Finding from Prior Years: No Recommendation: We recommend the County implement a control process which includes a secondary review and approval of the Project and Expenditure Reports. Views of Responsible Officials: Moving forward, the Finance Director will review and approve the reports prior to being submitted.