Audit 401190

CONDITION: the City failed to file its compliance report by the due date for the 2024 Coronavirus State and Local Fiscal Recovery Funds reporting requirement. CRITERIA: The City should have adequate internal controls in place to ensure that compliance requirements are met for all grants received. CONTEXT, CAUSE, AND EFFECT: The City has undergone significant staffing changes and did not submit its Coronavirus State and Local Fiscal Recovery Funds compliance report by the deadline. RECOMMENDATION: We would recommend that the City strengthen its internal controls related to grants to ensure all grant compliance requirements have been met for each grant received. RESPONSE: The City agrees with this finding and will adhere to the corrective action plan included in this audit report.

CONDITION: Expenditures for this program were not approved prior to disbursement. CRITERIA: All expenditures funded through Federal grants should be reviewed and approved by appropriate City management prior to being disbursed. CONTEXT, CAUSE, AND EFFECT: The City has undergone significant staffing changes and did not monitor how the Coronavirus State and Local Fiscal Recovery Funds were being used. Because the City elected to use its full distribution under the revenue loss provisions, all government services during the period of performance are considered allowable uses of the grant funds. However, policies and procedures should be in place to ensure that only approved disbursements are paid for using the grant funding. RECOMMENDATION: We would recommend that the City strengthen its internal controls related to grants to ensure all expenditures funded through grant awards are reviewed and approved prior to disbursement. RESPONSE: The City agrees with this finding and will adhere to the corrective action plan included in this audit report.