Finding 1165780 (2023-002)

Reporting – Coronavirus State and Local Fiscal Recovery Funds ALN 21.027 U.S. Department of the Treasury Criteria: The U.S. Department of the Treasury established reporting requirements for local government recipients of Coronavirus State and Local Fiscal Recovery Fund (SLFRF). Recipients are required to submit quarterly Project and Expenditure Reports through the Treasury’s reporting portal by the last day of the month following the end of each quarter. Condition: The City submitted all required quarterly reports for 2023; however, each report was filed after the required deadline. Reports were submitted within 60 days after quarter end, rather than by the last day of the subsequent month as required. Context: Our review confirmed that all reports were eventually filed, but none met the prescribed timeline. Cause: Lack of knowledge and insufficient internal controls over SLFRF reporting requirements. Effect: The City was not in compliance with federal reporting requirements, which may increase the risk of questioned costs or impact future funding. Repeat Finding: Yes. Prior Year Finding 2022-001. Recommendation: We recommend the City strengthen internal controls over SLFRF reporting requirements, including assigning responsibility for monitoring and reporting program activity to appropriate individuals and ensuring those individuals understand Treasury deadlines and portal requirements. Management’s Response: See management’s response in City’s Corrective Action Plan.