Audit 382323

Criteria—As outlined within the Compliance Supplement, the City is required to submit quarterly reports to the Department of the Treasury that detail the City’s use of Coronavirus State and Local Fiscal Recovery Fund (“CSLFRF”) spending. The Department of the Treasury has provided reporting requirements as outlined within Key Line Items, which include increased reporting on expenditures and subawards greater than $50,000. Condition and Context—We found that the City aggregated all project expenditures and reported them within the category for amounts under $50,000. However, testing found numerous project expenditures and contracts greater than that amount. Cause—The City has failed to establish internal controls to ensure that CSLFRF reports submitted to the Department of Treasury are free from material misstatements. Effect or Potential Effect—The City does not appear to have addressed all reporting Key Line Items. Recommendation—We recommend that the City amend future reports to ensure that sufficient expenditure detail is reported to the Department of the Treasury. View of Responsible Officials and Planned Corrective Action Plan—The City will update amounts and descriptions within the Department of Treasury’s reporting portal to ensure all amounts expended are properly reported.