Finding Text
2023-001 U.S. Department of the Treasury
COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – ALN 21.027
Criteria: The compliance supplement identifies four Key Line Items required to be reported to
the federal awarding agency which include (1) current period obligation, (2) cumulative
obligation, (3) current period expenditure and (4) cumulative expenditure. Per 2 CFR 200.1, an
obligation is an order placed for property and services, contracts and subawards made, and similar
transactions that require payment.
Condition: Obligations were overstated by $965,175 on the March 31, 2023 Project and
Expenditure report.
Cause: The Town did not have a clear understanding of the reporting requirements and included
amounts approved but not obligated.
Effect: The Town did not properly report amounts obligated in the March 31, 2023 Project and
Expenditure report.
Questioned Costs: None
Repeat Finding from Prior Year: No
Recommendation: The Town should implement procedures to only report obligations on the
Project and Expenditure reporting for items that meet the federal criteria for reporting as an
obligation.
Views of Responsible Official: Management agrees with the finding.