Audit 404427

NONCOMPLIANCE AND MATERIAL WEAKNESSES 2 CFR 1000.10 provides that, except for the deviations set forth elsewhere in this Part, the Department of Treasury adopts the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards set forth at 2 CFR Part 200. 2 CFR 200.302(b)(2) states, in part, the financial management system of each non-Federal entity must provide for accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 and 200.329. 2 CFR 200.329(c)(1) states that non-Federal entities must submit performance reports at the interval required by the Federal awarding agency or pass-through entity to best inform improvements in program outcomes and productivity. Per the City’s Ohio Department of Development Water and Wastewater Infrastructure Program Grant Agreement, program reports must be submitted by close of business, on the second Friday at the end of each quarter. Program reports must include the following information: a. Narrative summary of use of funds during the reporting period b. Narrative describing promoting equitable outcomes. Describe efforts used to promote equitable outcomes, including how projects were implemented with equity in mind. c. Narrative describing community engagement d. Labor Practices: Describe workforce practices on projects implemented. How is the project using strong labor standards to promote effective and efficient delivery of high quality infrastructure. e. Project Construction Start Date (if applicable) f. Project Operations date g. National Pollutant Discharge Elimination System (NPDES) Permit Number (if applicable) h. Public Water System (PWS) ID Number (if applicable) i. Information on Matching funds utilized during the reporting period (i.e., source, amount and uses) The City did not have proper internal controls in place to ensure the timely submission of the quarterly performance reports related to the Galalina & Harbor Area Sanitary Sewer Rehabilitation. We noted that the City did not file the first of the third quarterly reports as required by their grant agreement.Failure to have the proper controls in place to ensure the timely submission of the quarterly performance reports could result in the Treasury taking action against the City for failure to comply with programmatic requirements. The City should implement and have controls in place to ensure the quarterly performance reports are filed by the required due dates.