Finding 1136459 (2023-005)

Federal Program: 21.027 – Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Award Number: PON211221000000422 Questioned Costs: $0 Criteria: Single audit reporting packages must have a report date no later than nine months after the fiscal year‐end (2 CFR Part 200 Subpart F). Condition: The audit was not completed by the deadline. Cause: The City continued to experience delays in its financial reporting and completion of audits since 2020 when the City faced staffing difficulties. Effect: The City was not in compliance with federal regulations and guidelines for the single audit submission. Recommendation: The City should implement controls for filing federal financial reports in a timely manner. Management’s Response and Planned Corrective Action: In the past few years, the City has experienced turnover in management from the City Clerk, Finance Director, and the HR Director along with being significantly understaffed. With the stabilization of appropriate staffing levels along with appropriate procedures, and clear job duties this should no longer be an issue. The Mayor and City Clerk have sent out instructions to all department heads that the documentation for all grants must be sent to the Admin Department.