Audit 314923

U.S. Department of Commerce Economic Assistance Adjustment 11.307 Economic Development Cluster Reporting Significant Deficiency in Internal Control over Compliance Criteria – An effective system of internal controls should be in place to ensure accuracy, completeness and timely submission of the reports required by the grantor. In accordance with the federal grant guidelines, Project Progress Reports are required to be submitted on a quarterly basis until the final grant payment is made. Reports are due no later than 15 days following the end of the quarterly period. Condition – During the year ending June 30, 2023, the City submitted their quarterly Project Progress Reports more than 15 days after the end of the quarterly periods. Cause – The City’s policies and procedures did not have adequate controls to ensure the reports were filed within 15 days of the quarterly period end. Effect – Reports were not filed within 15 days as required by the grant agreement. Questioned Costs – None reported. Context – All four quarterly Project Progress Reports were tested. Repeat Finding From Prior Years – No. Recommendation – We recommend that finance staff continue to establish effective internal controls to ensure reports are filed timely. Views of Responsible Officials – We agree with the auditor’s recommendation and staff will more closely monitor the third party that is administering the grant.

U.S. Department of Commerce Economic Assistance Adjustment 11.307 Economic Development Cluster Reporting Significant Deficiency in Internal Control over Compliance Criteria – An effective system of internal controls should be in place to ensure accuracy, completeness and timely submission of the reports required by the grantor. In accordance with the federal grant guidelines, Project Progress Reports are required to be submitted on a quarterly basis until the final grant payment is made. Reports are due no later than 15 days following the end of the quarterly period. Condition – During the year ending June 30, 2023, the City submitted their quarterly Project Progress Reports more than 15 days after the end of the quarterly periods. Cause – The City’s policies and procedures did not have adequate controls to ensure the reports were filed within 15 days of the quarterly period end. Effect – Reports were not filed within 15 days as required by the grant agreement. Questioned Costs – None reported. Context – All four quarterly Project Progress Reports were tested. Repeat Finding From Prior Years – No. Recommendation – We recommend that finance staff continue to establish effective internal controls to ensure reports are filed timely. Views of Responsible Officials – We agree with the auditor’s recommendation and staff will more closely monitor the third party that is administering the grant.