Finding 1062159 (2021-005)

Finding 2021-005 Late Reporting and Noncompliance with Reporting Requirements Federal Agency: U.S. Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds ALN: 21.027 Award Numbers: SLFRP4178/4850 Award Year: 2021 Type of Finding: Material weakness in internal control over compliance and material noncompliance Criteria: Reporting requirements in the grant agreement state that quarterly financial reports must be submitted to the Department of the Treasury’s Office of Inspector General. These reports should contain COVID-19 related costs incurred during the covered period beginning on March 1, 2021 and ending on December 30, 2021. Condition and context: The Village did not adhere to quarterly reporting requirements specified in the grant agreement as no reports were submitted during fiscal year 2021. Cause: Lack of internal controls over reporting. Effect: Failure to follow compliance requirements could result in loss of Federal funding. Questioned Costs: None noted. Repeat finding: This is a repeat of Finding 2020-005, and since it is a repeat finding we believe this to be a systemic issue. Recommendation: We recommend the Village adhere to quarterly reporting requirements specified in the grant agreement. Management’s Response: Management concurs with the finding. See Corrective Action Plan.