Finding 1125063 (2024-001)

Late Reporting and Noncompliance with Reporting Requirements Federal Agency: U.S. Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds ALN: 21.027 Award Numbers: 22-LGLR-26/SLRFP4346 Award Year: 2022 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: In accordance with 2 CFR part 200, subpart D, section 200.328 / 31 CFR section 35.4(c), the recipients are to report annually and quarterly on a timely basis to the U.S. Department of Treasury. Condition and context: The annual report was submitted late, after the deadline. The quarterly report submission dates could not be substantiated. Cause: Due to high amounts of turnover, the Borough was not able to complete the reports within the time requirement. Effect: Late submission of grant progress reports may result in delaying the issuance of funds, or continuation of the award. Questioned Costs: None noted. Repeat finding: This is not a repeat finding and due to the turnover it is considered an isolated instance. Recommendation: We recommend that the client implements a stronger set of internal controls that would ensure proper and timely reporting. Management’s Response: Management concurs with the finding. See Corrective Action Plan.