Finding Text
Finding Number: 2023-002
Federal Agency: U.S. Department of the Treasury
Cluster/Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Fund
AL Number(s): 21.027
Award Year: 2023
Compliance Requirement: Reporting
Type of Finding
Compliance
Internal Control over Compliance - Significant Deficiency
Criteria or Specific Requirement
Recipients of the ARPA SLFRF grants must adhere to the U.S. Department of the Treasury’s reporting requirements, which include the submission of accurate and timely project and expenditure reports to demonstrate compliance with the allowable use of funds and the progress of projects financed by the grant.
Condition and Context
It was noted that the Town did not complete the required project and expenditure reports within the stipulated deadlines for the ARPA SLFRF grant.
Cause
The lack of completing the required project and expenditure reports may be due to an insufficient control system to track and ensure compliance with reporting guidelines.
Effect or Potential Effect
The noncompliance with reporting requirements could result in the withholding of further grant payments and recovery of funds by the Federal agency.
Recommendation
The Town should develop a detailed reporting schedule in accordance with the Treasury’s requirements and develop personnel to oversee compliance with reporting requirements and establish an internal review process to verify the accuracy and completeness of reports before submission.
Views of Responsible Official
Management agrees with the finding.
Planned Corrective Action
Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.