Finding 1160193 (2024-019)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-10-08
Audit: 370560
Organization: Town of Jonesboro (LA)

AI Summary

  • Core Issue: The Town failed to provide required performance reports for the SLFRF program for the year ending June 30, 2024.
  • Impacted Requirements: Annual reporting is mandatory for SLFRF funds, following OMB-approved formats.
  • Recommended Follow-Up: Request an extension, communicate with the oversight agency, and submit the report promptly to mitigate consequences.

Finding Text

2024-019 Non-Compliance with Reporting Requirements for SLFRF Program Grantor Department of Treasury - Assistance Listing 21.027 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Grant Period – Year ended June 30, 2024 First reported 2024 Type Material Weakness, Noncompliance Condition The Town did not provide the auditor with any reports for the State and Local Fiscal Recovery Funds (SLFRF) program for the year ended June 30, 2024. Criteria Entities receiving funds under the State and Local Fiscal Recovery Funds (SLFRF) program are required to submit performance reports at least annually. These reports must be prepared in a format authorized by the Office of Management and Budget (OMB). Cause The failure may be due to a lack of understanding of the reporting requirements or inadequate internal controls over financial reporting. Effect The absence of the required reports impedes the auditor's ability to verify the proper use of SLFRF funds and assess compliance with federal requirements. This non-compliance could result in questioned costs and potential repercussions from federal oversight bodies. Questioned Costs None Recommendation In the immediate future, we recommend the following: 1. Seek an Extension: Contact the cognizant or oversight agency for audit to request an extension. Extensions may be granted if the original deadline imposes an undue burden on the Town. 2. Communicate with the Agency: Explain the reasons for the delay to the relevant agency and seek guidance on corrective actions. This communication can help in obtaining an extension or understanding any penalties. 3. Submit the Report Promptly: Even if the deadline has been missed, submit the report as soon as possible to minimize negative consequences and demonstrate a commitment to compliance. In the future, the Town should establish and implement procedures to ensure compliance with grant reporting requirements. Management's Response See management’s corrective action plan.

Corrective Action Plan

The Town of Jonesboro acknowledges this audit finding and concurs that, for the reporting period ending June 30, 2024, performance and financial reports required under the State and Local Fiscal Recovery Funds (SLFRF) program were not submitted to the appropriate oversight authorities nor made available to the audit team. This lapse was due in part to a lack of understanding of the federal reporting requirements and the absence of internal procedures to track and manage SLFRF reporting obligations. The Town acknowledges that this noncompliance impeded the auditor’s ability to verify program expenditures and compliance with the applicable provisions of 2 CFR Part 200 and guidance issued by the U.S. Department of the Treasury and the Office of Management and Budget (OMB). To correct and prevent future occurrences of this issue, the Town will implement the following corrective action plan: 1. Immediate Remedial Action: The Town will submit any required SLFRF reports for the 2024 program year as soon as possible, even if past the original deadline. We will also reach out to the U.S. Department of the Treasury or its designated agency to formally communicate the reason for the delay and request guidance on next steps, including potential extensions or waivers. 2. Establishment of Formal Reporting Procedures: The Town is developing internal procedures and deadlines to ensure timely submission of all future federal grant reports. These procedures will include: o A reporting calendar with submission deadlines aligned to OMB and Treasury guidance; o Assigned personnel responsibilities for data collection, performance metrics, and narrative preparation; and o Review protocols by finance and grants administration officials prior to submission. 3. Staff Training and Capacity Building: The Town will seek appropriate training from federal or state agencies or through official SLFRF guidance webinars and 116 documentation to ensure staff are fully informed of compliance and reporting responsibilities under the program.

Categories

Internal Control / Segregation of Duties Material Weakness Reporting

Other Findings in this Audit

  • 1160188 2024-014
    Material Weakness Repeat
  • 1160189 2024-015
    Material Weakness Repeat
  • 1160190 2024-016
    Material Weakness Repeat
  • 1160191 2024-017
    Material Weakness Repeat
  • 1160192 2024-018
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.458 Clean Water State Revolving Fund $304,399
21.027 Coronavirus State and Local Fiscal Recovery Funds $105,671
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $47,047
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $25,761
90.200 Delta Regional Authority $23,060