Audit 294713

NONCOMPLIANCE OF SPECIAL REPORTING REQUIREMENT CONDITION: The SLFRF Compliance Report submitted to the Department of Treasury erroneously classified all expenses to Lost Public Sector Revenue category, when in fact it should have reported $36,000 to the Negative Economic Impacts Caused by the Public Health Emergency category. CRITERIA: Per the Department of the Treasury 31 CFR Part 35 “Coronavirus State and Local Fiscal Recovery Funds (SLFRF): Final Rule”, the uses of the SLFRF funds may be used to: • Support public health expenditure, support public health expenditures, by funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff; • Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector; • Replace lost public sector revenue to provide government services; recipients may use this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic; • Provide premium pay for essential workers, offering additional support to those who have borne and will bear the greatest health risks because of their service in critical infrastructure sectors; and • Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and to expand access to broadband internet. The SLFRF Compliance Report submitted to the Department of Treasury should have reflected these categories, as appropriate. CAUSE: The City misunderstood how the expenditures were to be reported to the grantor. EFFECT: The erroneous report was filed with the grantor. REPEAT FINDING PRIOR YEAR FINDING NUMBER No N/A RECOMMENDATION: The City will amend the March 2022 SLFRF Compliance Report to reflect the proper classification of expenditures. VIEW OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTIONS: See corrective action plan.

NONCOMPLIANCE OF SPECIAL REPORTING REQUIREMENT CONDITION: The SLFRF Compliance Report submitted to the Department of Treasury erroneously classified all expenses to Lost Public Sector Revenue category, when in fact it should have reported $36,000 to the Negative Economic Impacts Caused by the Public Health Emergency category. CRITERIA: Per the Department of the Treasury 31 CFR Part 35 “Coronavirus State and Local Fiscal Recovery Funds (SLFRF): Final Rule”, the uses of the SLFRF funds may be used to: • Support public health expenditure, support public health expenditures, by funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff; • Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector; • Replace lost public sector revenue to provide government services; recipients may use this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic; • Provide premium pay for essential workers, offering additional support to those who have borne and will bear the greatest health risks because of their service in critical infrastructure sectors; and • Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and to expand access to broadband internet. The SLFRF Compliance Report submitted to the Department of Treasury should have reflected these categories, as appropriate. CAUSE: The City misunderstood how the expenditures were to be reported to the grantor. EFFECT: The erroneous report was filed with the grantor. REPEAT FINDING PRIOR YEAR FINDING NUMBER No N/A RECOMMENDATION: The City will amend the March 2022 SLFRF Compliance Report to reflect the proper classification of expenditures. VIEW OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTIONS: See corrective action plan.