Finding 2025-001
material weaknessmodified opinion
- Program
- CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS (21.027)
- Compliance requirement
- Reporting
- FAC record
- FY2025 audit on fac.gov
Finding text from the filing
Finding Number: 2025-001
Federal Program: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) ALN 21.027
Finding Type: Material Noncompliance with Reporting Requirements
Criteria: Treasury requires accurate annual reporting of obligations and expenditures for the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) to perform effective oversight.
Condition and Context: The County incorrectly reported all CSLFRF expenditures as completed as of the March 31, 2025 expenditure report. However, $587,245 had not yet been spent, a material balance to the grant. The reporting was also finalized.
Cause: Misunderstanding of reporting status requirements and lack of coordination with other County departments to review data submitted in the report.
Effect or Potential Effect: Treasury did not receive accurate information regarding project completion status. Because of the key obligation and expenditure dates in the grant, the Treasury received information that could cause a significant difference in their oversight activities.
Questioned Cost: N/A.
Recommendation: We recommend that the entity implement procedures to ensure accurate expenditure reporting on grants. This may include formal reconciliation of reported amounts to accounting records and other department review before report submission.
Views of Responsible Official: The Treasurer concurs with the audit finding. The Treasurer confused the concepts of obligations (which was complete as of the report date) and expenditures (which were not complete as of the report date). Future grant reports will be supplemented with information from the accounting system to support actual expenditures reported.