Finding Text
Finding 2024-002 AL No.: 21.027 Program Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of Treasury Award Number/Year: 1505-0271 / 2021 Criteria: The Uniform Guidance requires that local entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations, and program compliance requirements. The Uniform Guidance further requires auditors to obtain an understanding of the local entity's internal control over federal programs. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission of financial reports, which should be reviewed and approved by a responsible party other than the original preparer before they are submitted to the granting agency. Condition and Context: A sample of one annual P&E report was selected for testing. There was no documentation available to support that the report was reviewed and approved by an individual separate from the preparer prior to submission. This sample was not statistically valid. Cause: The City does not have procedures in place requiring an independent person to review the reports before submission. Effect: Reports could be submitted that contain errors, or reports may not be submitted within the allowed reporting periods. Questioned Costs: None noted. Recommendation: We recommend that an employee other than the preparer review all reports before they are submitted to the Department of Treasury and documentation of the review be retained. Management's Response: The Finance Department will have a staff member initial and review the final report before it is submitted on the Department of Treasury website. This will be corrected right away in September 2025 for future reports being filed.