Brazos County

U.S. Department of Treasury CFDA No. 21.027 - Coronavirus State and Local Fiscal Recovery Funds Grant Period- 3/3/21-12/31/26 Criteria: The 2023 Compliance Supplement states that recipients may use payments from the Coronavirus State and Local Fiscal Recovery funding to replace lost public sector revenue to provide government services. Recipients can calculate lost revenue based on the formula provided in the Final Rule to determine the amount of State and Local Fiscal Recovery funds that can be used for the provision of government services. Condition: During review of this compliance requirement, it was noted that actual revenue amounts for calendar year 2022 that were used for the revenue loss calculation were understated by $478,903. In tum, the revenue loss calculation was overstated by $478,903. Cause: The noncompliance appears to have been caused by the fact that the County posted a large adjusting journal entry to the trial balance for interest income after the income totals had already been pulled for the revenue replacement calculation. Effect: The requirements of the funding agreement were not fully adhered to. Questioned Costs: This finding did not result in any questioned costs. Context: We tested the revenue replacement calculator provided in the Final Rule as completed by the County. Recommendation: We recommend the County staff ensure all interest income entries are made before the revenue totals are obtained for the revenue replacement calculation. Management's Response: The County Auditor's Office agrees with the comment and the recommendation. This finding was an oversight due to the revenue replacement calculation being completed prior to the monthly interest being posted. An adjustment was made in fiscal year 2024 to the general ledger to move the amount of revenue replacement back to the grant. Corrective Action Planned: The County will continue to monitor accounts to ensure all required amounts are posted and included in future calculations as applicable.