Finding 1102309 (2023-006)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-03-06
Audit: 345026
Organization: City of Baker City, Oregon (OR)

AI Summary

  • Core Issue: The City inaccurately reported that all Coronavirus State and Local Fiscal Recovery Funds were fully expended, despite a significant amount remaining unspent.
  • Impacted Requirements: The City failed to properly include tranche 2 funds in the obligations and revenue loss sections of the report, which is necessary for compliance.
  • Recommended Follow-Up: Ensure staff receive proper training on reporting requirements and review prior reports for accuracy to prevent future discrepancies.

Finding Text

Condition and criteria: The City is required to file and annual report for the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program. As part of the reporting process, the City designates the portion allocable to revenue replacement to allow for the amount of expenditures that can be claimed as the broad general government services category. In addition, the City reports the amount of funds that were obligated and the amount that was actually expended. All the funds were obligated, but a significant amount had not been expended at the time of the report and the City reported the funds as fully expended. The reporting discussed tranche 2 funds received in some of the narratives but not in the obligations or revenue loss sections, which should be included in the reports. Cause: There were several changes in staff during the year and the staff that filed the March 2023 report was new to the process. Staff relied on the prior year reporting, which was also did not meet regulatory requirements. The grant has a wide latitude on allowable costs and management changed their decision on costs charged to the grant causing further difficulties in reporting.

Categories

Allowable Costs / Cost Principles Reporting

Other Findings in this Audit

  • 525867 2023-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $476,445
66.458 Clean Water State Revolving Fund $416,221
20.106 Airport Improvement Program, Covid-19 Airports Programs, and Infrastructure Investment and Jobs Act Programs $225,382
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $129,924
20.616 National Priority Safety Programs $748