Finding 1099530 (2022-003)

Assistance Listing, Federal Agency, and Program Name - 66.818, U.S. Environmental Protection Agency, Brownfields Assessment and Cleanup Cooperative Agreements Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type: Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - In accordance with the Closeout Agreement dated July 20, 2012, the City is required to annually provide a report to the U.S. Environmental Protection Agency (EPA) on the use of the program income from the Assistance Agreement. Condition - The City did not submit the required annual report related to use of program income. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Program income was generated from an award that was closed out in 2012. The City first used the program income during the fiscal year ending September 30, 2022, with additional program income used during the fiscal year ending September 30, 2023. Cause and Effect - Since the program income was not used for the first ten years after the closeout of the award, the City did not have adequate oversight over original program requirements. As a result, they missed the reporting requirement. Recommendation - We recommend the City implement a process to ensure all reporting requirements are tracked and completed Views of Responsible Officials and Planned Corrective Actions - The City will work with the EPA to determine how to report the use of program income.