Audit 401303

2023-001 REPORTING U.S. Department of Treasury Passed through the City of Palm Bay, Florida ALN 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Award No. SLT-5031 2021 Funding Criteria: Per 2 CFR 200.303, non-Federal entities must establish and maintain effective internal controls to provide reasonable assurance of compliance with the Uniform Guidance and the Coronavirus State and Local Fiscal Recovery Funds program. The Subrecipient Contract between the City of Palm Bay and Community of Hope, Inc. requires quarterly reports and a close out report. Condition: The following reports were not reviewed prior to submission to the City of Palm Bay, Florida: - Quarterly Reporting (Expenditure Summary and Performance Success Summary) - Project Close Out Report Additionally, two out of the three quarterly reports tested and the close out report were submitted to the pass-through agency late. Cause: Procedures are not in place internally for the review and approval of reports required by the Department of Treasury for Coronavirus State and Local Fiscal Recovery funding. Effect: Potential for unintended errors to occur without being immediately identified and corrected. The Organization was not in compliance with the Uniform Guidance and the Coronavirus State and Local Fiscal Recovery Funds program. Questioned Costs: None. Perspective: All reports identified above were not reviewed. Recommendation: Reports prepared by the Executive Director should be reviewed by an independent person to ensure completeness and accuracy. Additionally, the Organization should design a control to ensure reports are submitted in a timely manner in accordance with compliance requirements. Management Response: Community of Hope recognizes that our expansion and growth have made it difficult to maintain full and timely compliance with some reporting criteria. As such, we have created a compliance calendar that will alert staff to impending deadlines and requirements. In addition, we recently hired a staff member with compliance being a primary function. She is reviewing grant and policy compliance, making recommendations, and instituting changes to enhance compliance.