Finding 1075409 (2023-006)

Criteria: The U.S. Department of the Treasury requires quarterly submission of Project and Expenditure Reports for Metropolitan cities with a population below 250,000 residents that are allocated more than $10 million in SLFRF funding. These quarterly reports should report expenditures for costs incurred during that reporting period. Condition/Context: The City reported $9,550,000 as expenditures for an infrastructure project in the Water Utility when only $9,308,214 was actually spent on the project during 2022 and 2023. Cause: The City used the amount that was disbursed to the Water Utility as the expenditure, not the amount the Water Utility spent in 2022 and 2023. Effect: The City overstated project expenditures in the quarterly submission of Project and Expenditure Reports during for 2022 and 2023. Questioned Costs: Unknown Recommendation: We recommend that the City work with the Water Utility to determine and report actual expenditures incurred for the project for each quarterly submission.