Finding 1166257 (2024-002)

Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires auditees to prepare an accurate Schedule of Expenditures of Federal Awards containing awards expended, assistance listing title and number, award number, name of the Federal agency, name of pass-through entity, and awards paid to subrecipients. Condition: During our audit, we noted that the Schedule of Expenditures of Federal Awards contained errors. The City's current internal controls over Schedule of Expenditures of Federal Awards reporting are not sufficient enough to ensure correct reporting. Cause: Management failed to follow reporting requirements related to the Schedule of Expenditures of Federal Awards. Effect: Federal expenditures reported in the Schedule of Expenditures of Federal Awards were incorrect. Recommendation: We recommend management develop internal controls over reporting and consult with external consultants, if necessary, to ensure an accurate Schedule of Expenditures of Federal Awards is prepared. Management's Response: We will develop internal controls over reporting and will consult with external consultants, if necessary, to ensure preparation of an accurate Schedule of Expenditures of Federal Awards.