Finding 1148609 (2023-001)

2023-001 Improve Internal Controls over Reporting Federal Program Information Federal Agency: U.S. Department of the Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number(s): 21.027 Award Year: 2023 Compliance Requirement: Reporting Type of Finding Compliance Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement According to the Uniform Guidance 2 CFR Part 200, recipients of federal awards are required to adhere to all reporting requirements outlined in the terms and conditions of the award. Timely submission of performance and evaluation reports is essential to demonstrate compliance with program objectives and to provide transparency and accountability for the use of federal funds. Metropolitan cities and counties with a population below 250,000 residents that are allocated less than $10 million in SLFRF funding and NEUs that are allocated less than $10 million in SLFRF funding must submit annual Project and Expenditure Reports. The report covers April 1 through March 31 of the following year, and must be submitted to the Treasury by April 30th, one month after the end of the period being reported on. Condition and Context During the audit of the Town's compliance with the requirements of the Coronavirus State and Local Fiscal Recovery Funds program, it was noted that the Town did not submit its required annual performance and evaluation report by the designated deadline. The report was due by April 30th, 2023 but was not submitted until May 11th, 2023. Cause The delay in report submission was due to the Town engaging in a Town-wide system conversion coupled with personnel turnover within the Finance Department. As a result, the report was not submitted by the designated deadline.   Effect or Potential Effect Failure to submit the annual performance and evaluation report timely results in non-compliance with federal award requirements specific to the program. No questioned costs are reported as a result of this finding as it is administrative in nature. Recommendation To address this deficiency, we recommend the Town implement procedures to track and monitor compliance deadlines for all federal reporting requirements. Views of Responsible Official Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.