Finding Text
2023-003
Material Weakness in Internal Control over Compliance
Program: Local Assistance and Tribal Consistency (LATCF)
Federal Assistance Listing Number: 21.032
Federal Agency: U.S. Department of Treasury
Compliance Requirement: Reporting
Grant year: 2023
Applicable Pass-through Entity: Direct Award
Criteria or Specific Requirement
The County should have a system in place to provide reasonable assurance that reports of Federal awards submitted to the Federal awarding agency include all activity of the reporting period, are supported by underlying accounting or performance records, and are fairly presented in accordance with program requirements.
Condition
The County submitted the annual Obligation and Expenditure Report required by the grant for the calendar year 2022 reporting period. The County reported all expenditures under "Category 4: Other Governmental Purposes – Other Purposes Not Listed Above." There was no general ledger or other records used as the basis for the reports.
Cause
To efficiently and quickly complete the report, the County reported the expenditures as other governmental purposes rather than the more specific categories provided in the reporting template.
Effect or Potential Effect
The information provided to the Federal awarding agency was categorized incorrectly.
Questioned Costs
None
Context
There was only one annual report submitted during the time period tested.
Identification of a Repeat Finding
This is not a repeat finding.
Recommendation
The County should use general ledger reports or other reliable records to categorize the expenditures as outlined by the Report Guidance for the Local Assistance the Tribal Consistency Fund provided by the U.S. Department of Treasury dated September 2022.
Views of Responsible Officials
County staff will continue to increase their knowledge on proper reporting requirement including specific reporting requirement for the different types of grants received by the County and required reporting under each grant. Additionally, the County will implement review processes to ensure reports filed are done completely and accurately.