Finding Text
2023-001 Reporting
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 U.S. Treasury Department's current version of its Coronavirus State and Local Fiscal Recovery Funds Guidance on Recipient Compliance and Reporting Responsibilities (collectively, the "SLFRF Guidance") provides information on the reporting requirements of the program. During the audit period, quarterly Project and Expenditure Reports were required under this guidance.
The quarterly Project and Expenditure Reports contain key line items under the following three subcategories: 1) Obligations and Expenditures, 2) Subawards, and 3) Detailed information on any loans issued; contracts and grants awarded; transfers made to other government entities; and direct payments made by the recipient that are greater than $50,000.
Condition: Certain reports reviewed had errors in the reporting as noted below:
Exeption Type - Number of Items Testes - Number of Exceptions
Expenditure amount did not agree to schedule of expenditures - 32 - 7
Expenditures were incorrectly classified - 32 - 7
Obligated amounts per Organization’s contract did not agree with value reported as obligated on quarterly reports - 32 - 20
Questioned costs: N/A
Context: The auditors selected and tested a statistically valid sample of 8 organizations reported on the interim report and all 4 quarterly reports until a total sample of 32 items were tested.
Cause: The information reported to the Treasury was not supported by accurate information. In addition, the reporting errors were not identified in the review of the reports.
Effect: Inaccurate data is reported to the Treasury.
Repeat Finding: Yes.
Recommendation: We recommend corrections to quarterly reports be made in subsequent quarterly reports to ensure obligations match actuality. We recommend timely reconciliation of accounting transactions to allow for accurate reporting of expenditures through the quarter.
Views of responsible officials: There is no disagreement with the audit finding.