Finding 1061130 (2023-002)

31 CFR § 35.4(c) Financial Reporting Finding Number: 2023-002 Assistance Listing Number and Title: AL # 21.027 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Federal Award Identification Number / Year: SLFRP43047 and 2022-AR-LEP-1066 / 2023 Federal Agency: U.S. Department of Treasury Compliance Requirement: Reporting Requirement Pass-Through Entity: Direct Award and Passed-Through the Ohio Department of Criminal Justice Repeat Finding from Prior Audit? No 31 CFR § 35.4(c) requires, in part, recipients, during the period of performance, to provide the Secretary of the U.S. Department of Treasury periodic reports providing detailed accounting of the uses of funds, modifications to a State or Territory's tax revenue sources, and such other information as the Secretary may require for the administration of this section.In the Coronavirus State and Local Fiscal Recovery Funds Final Rule, Treasury stated that it clarified reporting deadlines in its Compliance and Reporting guidance. Treasury’s Compliance and Reporting guidance states that metropolitan cities and counties with a population below 250,000 residents that are allocated less than $10 million in SLFRF funding and non-entitlement units that are allocated less than $10 million in SLFRF funding are required to submit annual Project and Expenditure Reports. It further states that the initial Project and Expenditure Report covering March 3, 2021 to March 31, 2022 was required to be submitted to Treasury by April 30, 2022, and subsequent annual reports will cover one calendar year and must be submitted to Treasury by April 30. The City was required to submit a Project and Expenditure Report by April 30, 2024, to the U.S. Department of the Treasury through the Treasury’s Portal. However, the lack of adequate control procedures in place for reporting resulted in the city omitting $2,911,320 in expenditures that were reported on their 2023 Schedule of Expenditures of Federal Awards from their 2023 Project and Expenditure Report filed by April 30, 2024 The City should establish a proper control process over reporting to ensure the timely, complete, and accurate submission of the Project and Expenditure Reports. This will help reduce the risk of Treasury taking action against the City for failure to comply with programmatic requirements.