Finding 1164255 (2024-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-12-09
Audit: 373539
Organization: City of Britton (SD)
Auditor: EIDE BAILLY LLP

AI Summary

  • Core Issue: There was a lack of documented controls for reviewing CSLFRF reports before submission, leading to incorrect expenditure reporting.
  • Impacted Requirements: Compliance with 31 CFR section 35.4(c) for annual reporting to the Department of Treasury was not met.
  • Recommended Follow-Up: Implement a documented review process to ensure accurate reporting and compliance before future submissions.

Finding Text

U.S. Department of Treasury Assistance Listing #21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Reporting Material Weakness in Internal Control over Compliance and instance of Material Non-Compliance Grant Award Number: Affects the direct award from U.S. Department of Treasury under assistance listing 21.027 in the Schedule of Expenditures of Federal Awards. Criteria: As required under 31 CFR section 35.4(c), annual reports are required by Department of Treasury for CSLFRF. Condition: There was no documented control in place to review reports prior to submission for CSLFRF; and, for the annual report submitted in April 2025, the incorrect amount was reported for expenditures in the current year. Cause: Review controls have not been implemented and expenditures of $114,170 for 2024 were previously reported as expenditures when obligated in 2022. Effect: Inaccurate information could have been reported or lines with required information could have been missed. Questioned Costs: None. Context/Sampling: No sampling was used. Only one annual report was filed. Repeat Finding from Prior Year(s): No Recommendation: We recommend a documented review process be implemented prior to report submission to ensure all lines are properly entered and agree to the applicable backup. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Finding 2024-004 Federal Agency Name: U.S. Department of Treasury Assistance Listing Number: #21.027 Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Finding Summary: There was no documented control in place to review reports prior to submission for CSLFRF; and, for the annual report submitted in April 2025, the incorrect amount was reported for expenditures in the current year. Corrective Action Plan: The City will implement a review process for reporting for future federal grants if a process is not already in place. No further correction of the reporting for CSLFRF is needed as reporting is complete and cumulative totals were reported correctly for the 2025 report submission. Responsible Individuals: Jennifer Athey, Finance Officer Anticipated Completion Date: October 2025

Categories

Reporting Material Weakness

Programs in Audit

ALN Program Name Expenditures
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $602,580
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $504,968
97.039 HAZARD MITIGATION GRANT $79,093