Finding Text
NONCOMPLIANCE WITH REPORTING REQUIREMENTS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, ASSISTANCE LISTING No. 21.027, DIRECT ALLOCATION, YEAR ENDED JUNE 30, 2024 Criteria: Per 2 CFR 200.302 and the CSLFRF Compliance Supplement, recipients are required to accurately report all expenditures on the Annual Project and Expenditure Report. Adequate internal controls must be in place to ensure the completeness and accuracy of federal reporting. Condition: During our audit, we noted that the government did not correctly report expenditures on its Annual Project and Expenditure Report for the CSLFRF program. Reported expenditures did not agree to the underlying accounting records. Cause: The city does not have internal control procedures in place that allow it to comply with reporting standards outlined in the Uniform Guidance and the OMB Compliance Supplement. Further, there was no independent review or approval of the report prior to submission. Effect: Non-compliance with program terms and conditions. Questioned Costs: None Recommendation: We recommend that the government establish and implement formal internal controls over the preparation and review of the Annual Project and Expenditure Report. This should include an independent review and approval process to ensure that all reported expenditures are accurate and agree to the underlying accounting records. Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.