Assistance Listing Number, Federal Agency, and Program Name ALN 21.027, Department of the Treasury, COVID 19 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year SLFRP 0127 2024 Pass through Entity EHDMMWJY1735 Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding No Criteria Per 2 CFR 200.214, nonfederal entities are subject to the non procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, as well as 2 CFR part 180. The regulations in 2 CFR part 180.300 restrict making federal awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from receiving or participating in federal awards. Condition The City could not provide evidence that it complied with the above regulations. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context Recipients of federal awards must have procedures in place to verify that a contractor with which they plan to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Cause and Effect The City did not have a procedure in place to review contractors and entered into covered agreements without knowing whether the contractors were debarred, suspended, or otherwise excluded. Recommendation We recommend that an additional internal process be put in place to ensure all vendors utilized with federal funds are not suspended or debarred. Views of Responsible Officials and Corrective Action Plan The City will ensure that all future contracts awarded under this program are in compliance and will have contractors sign to verify that they are in compliance.
Assistance Listing, Federal Agency, and Program Name ALN 21.027, Department of the Treasury, COVID 19 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year SLFRP 0127 2024 Pass through Entity EHDMMWJY1735 Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding No Criteria Per 2 CFR 200.510(2), for Federal awards received as a subrecipient, the name of the pass through entity and identifying number assigned by the pass through entity must be included. Condition The City did not report federal expenditures as pass through on the orginial issuance of the June 30, 2024 single audit report. Questioned Costs None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported Not applicable Identification of How Questioned Costs Were Computed Not applicable Context $723,526 of federal expenditures orginally reported as direct should have been classified as pass through expenditures. Cause and Effect The City did not have a control to ensure the pass through awards were properly identified on the Schedule of Expenditures of Federal Awards. As a result, the original report was incorrect and $723,526 were reclassified from direct awards to pass through awards in the reissued report. Recommendation We recommend that an internal process be put in place to track awards that are pass through. Views of Responsible Officials and Planned Corrective Actions The City will ensure that all future awards under this program are in compliance and separately reported on the Schedule of Expenditures of Federal Awards. All pass-through expenditures will be reconciled to ensure accuracy going forward.
Assistance Listing, Federal Agency, and Program Name ALN 21.027, Department of the Treasury, COVID 19 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year SLFRP 0127 2024 Pass through Entity EHDMMWJY1735 Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding No Criteria Per 2 CFR 200.510, the determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Per 2 CFR 200.502(a)(1), expenditure/expense transactions associated with grants, cooperative agreements, cost reimbursement contracts under the FAR, compacts with Indian Tribes, and direct appropriations are included. Condition The City did not report certain federal expenditures on the Schedule of Expenditures of Federal Awards (SEFA). Questioned Costs None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported Not applicable Identification of How Questioned Costs Were Computed Not applicable Context The City is utilizing several sources of funding to improve their utility systems. The amount expended was not orginally classified as a federal expenditure for the year ended June 30, 2024, and therefore was not included on the SEFA. However, it should have been reported as an expenditure of ARPA funds. Cause and Effect The City did not have a control to place to properly identifiy expenditures of federal awards on the SEFA. As a result, the orginal expenditures for APRA were understated by $1,180,649. Recommendation We recommend that the City review award agreements and track expenditures associated with awards for proper inclusion on SEFA. Views of Responsible Officials and Planned Corrective Actions The City will ensure that all future expenditures are tracked and reported to the proper periods and recorded appropriately.