Audit 386032

2025-001 Reporting Federal Program Information: Federal Agency and Program Name : Federal Assistance Listing Number U.S. Department of the Treasury Coronavirus State and Local Fiscal Recovery Funds - 21.027 Criteria: 2 CFR 200.303 requires that a non-federal entity must “(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The terms and conditions of the funding require the recipient to submit quarterly Project and Expenditure Reports to the U.S. Department of the Treasury (Treasury). Information required to be included in these quarterly reports includes projects funded, expenditures, obligations, and other information. Treasury’s Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance requires that “Reporting must be consistent with the definition of expenditures pursuant to 2 CFR 200.1.” Condition: For one of the quarterly Project and Expenditure Reports submitted, certain costs from prior periods had been reported as current period expenditures under the program. Questioned Costs: Unknown Context: Total federal expenditures for the Coronavirus State and Local Fiscal Recovery Funds were $16,810,743 for the year ended June 30, 2025. Cause: The City did not appropriately report current and prior period expenditures in the Quarterly Project and Expenditure Reports. Effect: Reports submitted to the Treasury could be inaccurate and using the wrong amounts could lead to non- compliance with related program requirements. Recommendation: We recommend that the City review the reporting instructions more closely to ensure they are appropriately implemented in completing the Project and Expenditure Report and ensure the amounts used are appropriate. Views of Responsible Officials: Management acknowledges the finding. See corrective action plan.