Finding Text
2023-001 – Reporting – Significant Deficiency in Internal Controls over Compliance and Noncompliance.
Funding agency: Department of Treasury
Title: Coronavirus State and Local Fiscal Recovery Funds
Assistance listing number: 21.027
Award years and number: 7/1/2022 – 6/30/2023
Criteria: Quarterly reports shall be submitted by the City to OBDD which must include such information as is
necessary for OBDD to comply with the reporting requirements established by the 42 U.S.C. 802, guidance issued
by the U.S. Treasury, and 2 CFR Part 200 (known as the “Super Circular”). The reports must be submitted using a
template provided by OBDD which has two classifications. Expenditure Reporting Template and Project Status
Update. Quarterly reports are due on April 10th, July 10th, October 10th, and January 10th. The City Recipient shall also submit to OBDD an annual report. The annual reports must be submitted using a
template provided by OBDD that includes but is not limited to Promoting Equitable Outcomes and Engaging with
the Community.
Condition: The City did not submit the report for the quarters ended December 31, 2022, March 31, 2023 and
June 30, 2023 based on the requirements stated in the grant agreement.
Questioned Costs: N/A
Cause: Sufficient procedures are not in place to ensure timely preparation, review, and submission of all required grant agreements.
Effect: The City did not comply with special reporting due date requirement under Coronavirus Relief Fund program.
Auditor’s Recommendations: We recommend the City implement policies and procedures to ensure timely
preparation, review, and submission of all required grant reports.
Management’s Response: The City didn’t have the proper understanding of the reporting requirements stated
in the contract with the OBDD. On December 26, 2023, during the audit process, the City contacted the OBDD
for having a better understanding on the templates, deadlines, and type of reports the City shall submit to complywith the grant agreement requirements.