Finding 1161912 (2024-006)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-11-05
Audit: 371801
Organization: City of Jackson, Tennessee (TN)

AI Summary

  • Core Issue: The City failed to report some expenditures for the Coronavirus State and Local Fiscal Recovery Funds due to missing purchase orders.
  • Impacted Requirements: Quarterly project and expenditure reports must be accurate and include all obligations and expenditures.
  • Recommended Follow-Up: Implement quarterly reconciliations of reports to the ARPA Fund to ensure all expenditures are captured and reported correctly.

Finding Text

Reporting Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing No. 21.027) Criteria: Internal controls should be in place to ensure the reporting requirements of the grant are timely and accurately completed. Condition: The City is required to complete quarterly project & expenditure reporting for the Coronavirus State and Local Fiscal Recovery Funds (CLSFRF). These reports are to include the current period’s obligations and expenditures. Context/Cause: During the testing of the current year reports, it was noted the City’s process for identifying the current period’s obligations and expenditures did not include procedures to identify any expenditures which were made without purchase orders. As such, there payments made to local beneficiary non-profits which did not include a purchase order, and therefore were not included in the reports. Effects: In accordance with the guidance from US Treasury on report corrections, any errors in the reporting period that is closed are to be made in a future reporting quarter. As such, the error on the reporting in the year ended June 30, 2024, will be corrected in subsequent reporting periods. Recommendation: We recommend the City ensure the project & expenditure reports are reconciled each quarter to the expenditures reported in the City’s ARPA Fund to ensure the accuracy and completeness of the reporting required by the grant. Auditee’s Response: We will ensure future reports include all previously omitted expenditures and work to implement controls sufficient to reconcile the programmatic reporting to the general ledger on a quarterly basis.

Corrective Action Plan

We will ensure future reports include all previously omitted expenditures and work to implement controls sufficient to reconcile the programmatic reporting to the general ledger on a quarterly basis.

Categories

Procurement, Suspension & Debarment Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1161913 2024-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $3.81M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $582,668
20.205 HIGHWAY PLANNING AND CONSTRUCTION $86,723
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $73,898
97.044 ASSISTANCE TO FIREFIGHTERS GRANT $56,910
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $52,002
16.575 CRIME VICTIM ASSISTANCE $38,496
16.609 PROJECT SAFE NEIGHBORHOODS $30,000
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $13,101