Finding 1106716 (2024-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-03-26
Audit: 348357
Organization: City of Carthage, Missouri (MO)
Auditor: Kpm CPAS PC

AI Summary

  • Core Issue: The City submitted its annual Project and Expenditure Report on time, but it inaccurately reported no expenditures despite having incurred costs.
  • Impacted Requirements: The report must include accurate details on projects, obligations, and expenditures as mandated by the grant agreement and federal guidelines.
  • Recommended Follow-Up: Management should establish better controls and procedures to ensure accurate reporting in future submissions, particularly for the upcoming report due April 30, 2025.

Finding Text

Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Compliance Requirement: Reporting Type of Finding: Compliance and Significant Deficiency Federal Agency: U.S. Department of the Treasury 2024-001 Reporting Criteria: Program requirements state that recipients must submit a Project and Expenditure Report on an annual basis which should include projects, obligations and expenditures for the reporting period. Condition: The City's 2024 annual Project and Expenditure Report was submitted timely, however the report did not provide accurate information as the City reported no expenditures when there were expenditures incurred during the reporting period. Context: The City did not report any expenditures on the annual report, however there were expenditures that occurred during the reporting period. Effect: The City did not report accurate information in the Project and Expenditure Report. Cause: The City did not have adequate controls or procedures in place to identify the applicable reporting requirement and ensure the information was filed accurately. Questioned Costs: N/A Identification as a Repeat Finding: N/A Recommendation: We recommend management implement policies and procedures to ensure required reports are completed accurately as required by the grant agreement and Uniform Guidance. View of Responsible Officials: We agree with the finding. Upon discovering the issue, we attempted to report accurate information on expenditures and obligations; however, the reporting window was not open for us to make corrections. We recognize the importance of maintaining accurate and timely reporting and are committed to strengthening our internal controls to prevent similar issues in the future. We will report all expenditures and obligations through the Treasury's Reporting Portal for the report due April 30, 2025, to ensure compliance with reporting requirements.

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 530273 2024-001
    Significant Deficiency
  • 530274 2024-001
    Significant Deficiency
  • 1106715 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.50M
20.939 Safe Streets and Roads for All $162,232
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $63,932
97.042 Emergency Management Performance Grants $32,288
20.205 Highway Planning and Construction $13,418