FINDING 2023-001
Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting
Summary of Finding:
The City submitted four P&E reports during the audit period; however, the controls in place were
not effective to prevent, or detect and correct, errors. As a result, errors...
FINDING 2023-001
Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting
Summary of Finding:
The City submitted four P&E reports during the audit period; however, the controls in place were
not effective to prevent, or detect and correct, errors. As a result, errors in reporting were identified. The
current period and cumulative expenditures reported consisted of the amounts expended by the
beneficiaries who were awarded funds from the City, rather than total amounts expended to the
beneficiaries, resulting in current period expenditures and cumulative expenditures being incorrectly
reported on all four reports as follows:
Quarterly Report: October 1, 2022 to December 31, 2022
Current period expenditures were overstated by $40,350. Cumulative expenditures were
understated by $262,057.
Quarterly Report: January 1, 2023 to March 31, 2023
Current period expenditures were understated by $2,338,864. Cumulative expenditures were
understated by $2,499,656.
Quarterly Report: April 1, 2023 to June 30, 2023
Current period expenditures were understated by $1,200,000. Cumulative expenditures were
understated by $3,699,656.
Quarterly Report: July 1, 2023 to September 30, 2023
Current period expenditures were overstated by $2,126,306. Cumulative expenditures were
understated by $1,573,349.
Contact Person Responsible for Corrective Action: Linda Moeller
Contact Phone Number and Email Address: 812-948-5333 and lmoeller@cityofnewalbany.com
Views of Responsible Officials and Explanation and Reasons for Disagreement:
We concur with the finding.
However, the issue and non-compliance deals with the interpretation of the federal rules
regarding the appropriate amounts to report and when to report them by subrecipients of
the monies.
INDIANA STATE BOARD OF ACCOUNTS
19
Office of the Controller New Albany City Hall 142 E Main Street, Suite 314 New Albany, Indiana 47150
Telephone: 812-948-5333 www.cityofnewalbany.com
City of New Albany, Indiana
Linda Moeller
City Controller
The non-compliance is not related to policies or controls not being effective to prevent,
detect or correct errors. In fact, the reporting system initially implemented by the City and
put in the federal reports provided the actual expenditures for those periods by recipients
of the grants.
However, the City does agree that after full examination and review of the federal rules
the initial full amount of funds provided to the subrecipients should have been reported in
full versus the actual expenditures during the periods.
Description of Corrective Action Plan:
Current period and cumulative expenditures reported will consist of the amounts
advanced to subrecipients.
Anticipated Completion Date:
The City has already made this correction in its most recent Quarterly Report April 1,
2024 to June 30, 2024.