Finding 1143350 (2024-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-06-25
Audit: 359778
Organization: City of Norton (OH)
Auditor: Rea

AI Summary

  • Core Issue: The City missed the deadline for submitting the Quarterly Program Report for the period ending December 31, 2024, submitting it over two months late.
  • Impacted Requirements: This finding highlights noncompliance with federal reporting requirements, specifically the timely submission of quarterly reports as mandated by the grant agreement.
  • Recommended Follow-Up: The City should establish internal procedures and deadlines to ensure all federal award reports are submitted on time.

Finding Text

Finding Number: 2024-001 Federal Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year: 2024 Assistance Listing Number (ALN): 21.027 Federal Awarding Agency: U.S. Department of Treasury Compliance Requirement: Reporting – Quarterly Program Reports Pass-through Entity: Ohio Department of Development Repeat Finding: No Significant Deficiency and Noncompliance – Timely Submission of Quarterly Program Reports Criteria: 2 C.F.R. § 200.328 Financial Reporting states, in part, the Federal agency or pass-through entity must collect financial reports no less than annually. The Federal agency or pass-through entity may not collect financial reports more frequently than quarterly unless a specific condition has been implemented in accordance with § 200.208. To the extent practicable, the Federal agency or pass-through entity should collect financial reports in coordination with performance reports. The recipient must submit quarterly program reports as required by the Federal award. In the Ohio Department of Development Water and Wastewater Infrastructure Program Grant Agreement, Statement of Agreement, Section 6 Reporting Requirements, Exhibit II Reporting, Section 2, Program Reports, all grant award recipients are required to submit program reports on a quarterly basis. Quarterly program reports must be submitted by close of business, on the second Friday, at the end of each quarter. Condition: The City did not submit the quarter ending December 31, 2024 Quarterly Program Report until March 7, 2025, after the deadline of January 10, 2025. Questioned Costs: None. Identification of How Questioned Costs Were Computed: N/A Context: Auditor reviewed the Quarterly Program Report for period ending December 31, 2024 via email submission to Ohio Department of Development, and noted the City did not submit the report until March 7, 2025, which was after the deadline of January 10, 2025. These requirements are outlined in the federal award agreement and applicable UG provisions. Cause and Effect: The issue results of lack of monitoring control related to grant reporting requirements. Failure to submit reports as required, could result in non-compliance with grant requirements. Recommendation: We recommend that the City implement procedures and internal deadlines for reviewing and timely submitting all reports under federal awards. Views of Responsible Officials and Corrective Action Plan: See Corrective Action Plan.

Categories

Subrecipient Monitoring Special Tests & Provisions Reporting Significant Deficiency

Other Findings in this Audit

  • 566908 2024-001
    Significant Deficiency
  • 566909 2024-001
    Significant Deficiency
  • 1143351 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.66M
20.205 Highway Planning and Construction $19,363