Audit 382396

2024-001 Reporting (Significant Deficiency in Internal Controls over Compliance) Assistance Listing Number(s): 21.027 Name of Federal Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Award Number: N/A Award Year: 2021 Criteria: Federal reporting requirements mandate that all recipients of federal funds submit financial, performance, and compliance reports as specified in Part 2 of the Uniform Guidance. Expenditures may be reported on either a cash or accrual basis, provided that the chosen method is clearly disclosed and applied consistently. All reported expenditures must align with the definition set forth in 2 CFR 200.1. Additionally, organizations are required to maintain accurate and complete accounting records to support the preparation and submission of compliant financial data, in accordance with applicable accounting standards and principles. Condition: During fiscal year 2024, the City submitted a Coronavirus State and Local Fiscal Recovery Fund Annual Project and Expenditure report with the incorrect current period expenditures amount and total cumulative obligations and expenditures. Context: During our testing we noted that the expenditures reported on the Annual Project and Expenditure report did not agree to the accounting records by a difference of $41,127 for the current period and accumulated expenditures. Cause: The City did not properly reconcile expenditures between internal records and amounts reported and no review was performed prior to submission. Effect: The Annual Project and Expenditure report was filed with incorrect current period and accumulated expenditures. Questioned Costs: None Repeat finding: No Recommendation: We recommend City management reconcile internal records with reports prior to submission. We also recommend City management submit corrected reports as needed, and corrected reports should be submitted by no later than the final report due date. Views of Responsible Officials: Management agrees with this finding.