Finding Text
2023-002 U.S. Department of the Treasury
COVID-19 – Coronavirus State and Local Fiscal Recovery Funds
Material Weakness in Internal Controls and Compliance Finding
Criteria: Per 2 CFR section 200.328 of the Uniform Guidance, each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the federal awarding agency.
The compliance supplement identifies four Key Line Items required to be reported to the federal awarding agency which include (1) current period obligation, (2) cumulative obligation, (3) current period expenditure and (4) cumulative expenditure.
Condition: The City did not prepare and file the four required quarterly Project and Expenditure reports for fiscal year 2023.
Cause: The City was not aware of the timing of grant reporting requirements.
Effect: The City is not in compliance with the federal award reporting requirements.
Questioned Costs: None
Repeat Finding from Prior Year: No.
Recommendation: The City should implement procedures to prepare Project and Expenditure reports in a timely manner.
Views of Responsible Official: Management agrees with the finding.