County of Grayson, VirginiaLocal Government

Program Title: COVID-19 Coronavirus Relief Fund ALN/CFDA Number: 21.019 Compliance Requirement: Reporting Criteria: Per single audit requirements, prime recipients (i.e. the Commonwealth of Virginia) are required to submit quarterly Financial Progress reports. To assist with the reporting requirement, the Commonwealth required quarterly reports from its subrecipients (the County). Condition: The amount reported in the quarterly reports to the Commonwealth totaled a cumulative $3,122,271 while expenditure reports from the County's system showed a total of $2,648,016 expended, with a difference of $474,255. Questioned Costs: None Context: Quarterly reports prepared for the Commonwealth were based on system generated expenditure detail reports for the same quarter; however, a year-to-date report was not utilized to ensure that aggregate totals reported to the state were updated for any accrual entries. Effect: The amounts reported by the County to the Commonwealth are overstated resulting in an error in reporting by the Commonwealth to the federal government. Cause: Lack of appropriate reconciliation and review processes over the quarterly reporting Recommendation: Management should establish a reconciliation process and reports should be reviewed by someone other than the preparer prior to submission to ensure accuracy of reporting.