Audit 372940

NONCOMPLIANCE WITH REPORTING REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, ASSISTANCE LISTING No. 21.027, DIRECT ALLOCATION, YEAR ENDED JUNE 30, 2024 Criteria: Per 2 CFR 200.302 and the CSLFRF Compliance Supplement, recipients are required to accurately report all expenditures on the Annual Project and Expenditure Report. Adequate internal controls must be in place to ensure the completeness and accuracy of federal reporting. Condition: During our audit, we noted that the government did not correctly report expenditures on its Annual Project and Expenditure Report for the CSLFRF program. Reported expenditures did not agree to the underlying accounting records. Cause: The city does not have internal control procedures in place that allow it to comply with reporting standards outlined in the Uniform Guidance and the OMB Compliance Supplement. Further, there was no independent review or approval of the report prior to submission. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: We recommend that the government establish and implement formal internal controls over the preparation and review of the Annual Project and Expenditure Report. This should include an independent review and approval process to ensure that all reported expenditures are accurate and agree to the underlying accounting records. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.

NONCOMPLIANCE WITH PROCUREMENT AND SUSPENSION AND DEBARMENT REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, ASSISTANCE LISTING No. 21.027, DIRECT ALLOCATION, GRANT No. AM-23-0295, YEAR ENDED JUNE 30, 2024 Criteria: Per 2 CFR 200.214, non-Federal entities are subject to the non-procurement, debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: The city did not comply with the procurement standards outlined in 2 CFR §200.318-§200.327, which require competitive procurement processes and verification that contractors are not suspended or debarred. Specifically, the city did not verify the eligibility of program recipients/participants/contractors through the System for Award Management (SAM) or equivalent documentation in order to verify that they were not suspended, debarred, or otherwise excluded from participation in the program. Cause: The city does not have procurement policies and procedures in place that allow it to comply with procurement standards outlined in the Uniform Guidance. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: Management should develop procedures that will provide reasonable assurance that procurement of goods and services are made in compliance with applicable federal regulations and other procurement requirements specific to a federal award or subaward, and that no subaward, contract, or agreement for purchase of goods or services is made with any suspended or debarred party. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.