Audit 370996

Federal Agency: U.S. Environmental Protection Agency Federal Programs: Congressionally Mandated Projects Assistance Listing Number: 66.202 Federal Award Identification Number and Year: 00A01315, 2024 Award Period: December 8, 2023 – December 1, 2025 Compliance Requirement: Reporting Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: Per the terms and conditions of the federal award, the semi-annual performance report must be submitted no later than April 30th and October 30th of each year. Condition: The City did not submit the required semi-annual performance report required during fiscal year 2024 within the time frame specified by the federal awarding agency. Questioned Costs: None. Context: The one semi-annual performance report required to be submitted during the period under audit was not submitted. Cause: The City’s procedures were not sufficient to ensure that reports were submitted timely. Effect: Failure to submit timely performance reports may hinder the federal awarding agency’s ability to monitor project progress and compliance and may impact the City’s eligibility for continued funding or future awards. Recommendation: We recommend the City strengthen its internal controls over federal reporting requirements to ensure timely compliance with all federal reporting deadlines. Views of Responsible Officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: Unknown Pass-Through Agency: State of Rhode Island Department of Administration Pass-Through Number(s): Unknown Award Period: March 3, 2021 – December 31, 2026 Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: In accordance with 2 CFR 200.328 and 31 CFR section 35.4(c), the City is required to submit quarterly “Project and Expenditure Reports” which are due 30 days after the end of each quarterly period. Condition: During our testing, we noted the City did not have adequate internal controls designed to ensure the quarterly reports were completed accurately. Questioned costs: None Context: During our testing, it was noted that the City did not accurately report the current period expenses and cumulative expenditures, or the revenue loss calculations for each of they quarterly reports. Cause: Lack of controls surrounding the preparation of quarterly reports. Effect: Failure to comply with Uniform Guidance and Treasury reporting requirements may result in questioned costs, audit findings, and potential recoupment of federal funds. Recommendation: We recommend the City implement procedures to ensure the accuracy of quarterly reporting and maintain supporting documentation for each of the amounts reported. Views of responsible officials: There is no disagreement with the audit finding.