Audit 22891

Identification of the Federal Program - Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing Number 21.027 Criteria - The criteria is based on the guidelines and regulations set forth by the funding agency, the Department of the Treasury, in the Compliance and Reporting Guidance: State and Local Fiscal Recovery Funds document. According to these requirements, recipients must include the total of both the current period expenditure and the cumulative expenditure as of the end of each quarter on each quarterly Project and Expenditure report. These amounts should agree to amounts recorded in the City?s trial balance and amounts reported on the SEFA. The recipients must also include detailed obligation and expenditure information for contracts and grants awarded. The recipient should also report on any subawards agreed upon with obligations or payments made to subrecipients. 2 CFR 200.303, Internal Controls, requires that recipients establish and maintain effective internal control over Federal awards that provides reasonable assurance that the recipient is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Condition - There was a lack of monitoring and appropriate review by the City of certain reports prepared by the grant department. Effect - For the reporting period ended June 30, 2022, current expenditures of $1,213,447 were excluded from the report and Cumulative Expenditures was understated by $1,328,786. Also, subrecipients were listed on the June 30, 2022 report that were not true subrecipients. The entities incorrectly listed as subrecipients had subawards totaling $1,541,016 incorrectly reported on the report. Cause - The incorrect reporting is attributed to a lack of understanding/misinterpretation of the reporting guidelines by the responsible personnel. Recommendation - The City should ensure responsible personnel has a clear understanding of the reporting guidance including what constitutes a subrecipient. The City should implement policies and procedures to monitor and review all reports prepared and submitted by the grants department. Views of Responsible Officials - The City agrees with the finding. The City will implement additional review procedures over grant reporting requirements, including more adequate review of reports prepared by third-party grant administrators.

Identification of the Federal Program - Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing Number 21.027 Criteria - The criteria is based on the guidelines and regulations set forth by the funding agency, the Department of the Treasury, in the Compliance and Reporting Guidance: State and Local Fiscal Recovery Funds document. According to these requirements, recipients must include the total of both the current period expenditure and the cumulative expenditure as of the end of each quarter on each quarterly Project and Expenditure report. These amounts should agree to amounts recorded in the City?s trial balance and amounts reported on the SEFA. The recipients must also include detailed obligation and expenditure information for contracts and grants awarded. The recipient should also report on any subawards agreed upon with obligations or payments made to subrecipients. 2 CFR 200.303, Internal Controls, requires that recipients establish and maintain effective internal control over Federal awards that provides reasonable assurance that the recipient is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Condition - There was a lack of monitoring and appropriate review by the City of certain reports prepared by the grant department. Effect - For the reporting period ended June 30, 2022, current expenditures of $1,213,447 were excluded from the report and Cumulative Expenditures was understated by $1,328,786. Also, subrecipients were listed on the June 30, 2022 report that were not true subrecipients. The entities incorrectly listed as subrecipients had subawards totaling $1,541,016 incorrectly reported on the report. Cause - The incorrect reporting is attributed to a lack of understanding/misinterpretation of the reporting guidelines by the responsible personnel. Recommendation - The City should ensure responsible personnel has a clear understanding of the reporting guidance including what constitutes a subrecipient. The City should implement policies and procedures to monitor and review all reports prepared and submitted by the grants department. Views of Responsible Officials - The City agrees with the finding. The City will implement additional review procedures over grant reporting requirements, including more adequate review of reports prepared by third-party grant administrators.