Audit 344765

Reporting 2023-015. General information: Grant Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Agency: U.S. Department of the Treasury CONDITION: During our engagement to audit, we noted that the annual Project and Expenditure Report (the report) submitted to the U.S. Treasury, covering the period from March 3, 2022 to March 31, 2023 included $807,021.75 ofexpenditures which were not incurred during the reporting period. CRITERIA: The U.S. Department of the Treasury Compliance and Reporting Guidance for the SLFRF Program, Part 2: Reporting Guidance. B. Project and Expenditure Report, 2. Annual Reporting states, in part: "The following recipients are required to submit annual Project and Expenditure Reports: '- Tribal governments that are allocated less than $30 million in SLFRF funding. '- Metropolitan cities and counties with a population below 250,000 residents that are allocated less than $10 million in SLFRF funding and NEUs that are allocated less than $10 million in SLFRF funding. For these recipients, the initial Project and Expenditure Report covered from March 3, 2022 to March 31, 2023 and was required to be submitted to Treasury by April 30, 2023. The subsequent annual reports will cover one calendar year and must be submitted to Treasury by April 30." Additionally, the U.S. Department of the Treasury Compliance and Reporting Guidance for the SLFRF Program, Part 1: General Guidance, D. Uniform Administrative Requirements, 10. Reporting states, in part: "…Expenditures may be reported on a cash or accrual basis, as long as methodology is disclosed and consistently applied. Reporting must be consistent with the definition of expenditures pursuant to 2 CFR 200.1" QUESTIONED COSTS: $0 CAUSE: Management did not have adequate controls in place to ensure the expenditures reported on the annual Project and Expenditure Report were accurtately reported to the U.S. Treasury. EFFECT: Management reported incorrect expenditures to the U.S. Treasury on the Project and Expenditure Report. This necessitated an adverse opinion for the Assistance Listing 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds program. REPEAT FINDING: No RECOMMENDATION: The Municipality of Ravenswood is directed to review these regulations and comply with the provisions set forth therein. Expenditures reported on the annual Project and Expenditure Report should be cross-referenced to accounting ledgers prior to submission. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: We will ensure that all expenditures of COVD-19 funds are reported in the proper period.

Reporting 2023-015. General information: Grant Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Agency: U.S. Department of the Treasury CONDITION: During our engagement to audit, we noted that the annual Project and Expenditure Report (the report) submitted to the U.S. Treasury, covering the period from March 3, 2022 to March 31, 2023 included $807,021.75 ofexpenditures which were not incurred during the reporting period. CRITERIA: The U.S. Department of the Treasury Compliance and Reporting Guidance for the SLFRF Program, Part 2: Reporting Guidance. B. Project and Expenditure Report, 2. Annual Reporting states, in part: "The following recipients are required to submit annual Project and Expenditure Reports: '- Tribal governments that are allocated less than $30 million in SLFRF funding. '- Metropolitan cities and counties with a population below 250,000 residents that are allocated less than $10 million in SLFRF funding and NEUs that are allocated less than $10 million in SLFRF funding. For these recipients, the initial Project and Expenditure Report covered from March 3, 2022 to March 31, 2023 and was required to be submitted to Treasury by April 30, 2023. The subsequent annual reports will cover one calendar year and must be submitted to Treasury by April 30." Additionally, the U.S. Department of the Treasury Compliance and Reporting Guidance for the SLFRF Program, Part 1: General Guidance, D. Uniform Administrative Requirements, 10. Reporting states, in part: "…Expenditures may be reported on a cash or accrual basis, as long as methodology is disclosed and consistently applied. Reporting must be consistent with the definition of expenditures pursuant to 2 CFR 200.1" QUESTIONED COSTS: $0 CAUSE: Management did not have adequate controls in place to ensure the expenditures reported on the annual Project and Expenditure Report were accurtately reported to the U.S. Treasury. EFFECT: Management reported incorrect expenditures to the U.S. Treasury on the Project and Expenditure Report. This necessitated an adverse opinion for the Assistance Listing 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds program. REPEAT FINDING: No RECOMMENDATION: The Municipality of Ravenswood is directed to review these regulations and comply with the provisions set forth therein. Expenditures reported on the annual Project and Expenditure Report should be cross-referenced to accounting ledgers prior to submission. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: We will ensure that all expenditures of COVD-19 funds are reported in the proper period.