Finding Text
2 CFR 1000.10 provides that, except for the deviations set forth elsewhere in this Part, the Department of Treasury adopts the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards set forth at 2 CFR Part 200. 2 CFR 200.329(c)(1) states that non-Federal entities must submit performance reports at the interval required by the Federal awarding agency or pass-through entity to best inform improvements in program outcomes and productivity. Reports submitted annually by the non-Federal entity and/or pass-through entity must be due no later than 90 calendar days after the reporting period. 31 CFR 35.4(c) requires recipients, in part, during the period of performance, to provide the Secretary of the U.S. Department of Treasury periodic reports providing detailed accounting of the uses of funds, modifications to a State or Territory's tax revenue sources, and such other information as the Secretary may require for the administration of this section. The U.S. Department of Treasury provided supplementary information in its interim final rule on reporting requirements for State and Local Fiscal Recovery Funds for 31 CFR Part 35 and provided further guidance in its Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance. The Compliance and Reporting Guidance, part 2 states that counties with a population below 250,000 residents must submit a Project and Expenditure Report by April 30, 2022 and then annually thereafter through the end of the award period on December 31, 2026. The City was required to submit a Project and Expenditure Report by April 30, 2023, to the U.S. Department of the Treasury through the Treasury’s Portal. However, the lack of adequate control procedures in place for reporting resulted in the City failing to submit the required report. Also, the lack of adequate control procedures in place for reporting resulted in the City incorrectly reporting obligated and expense amounts in the report due April 30, 2024, for the activity of April 1, 2023 - March 31, 2024, the City over-reported current period expenditures and current period obligations in the amount of $230,388. Failure to have the proper controls in place to ensure the accurate submission of the Project and Expenditure Reports could result in Treasury taking action against the City for failure to comply with programmatic requirements. The City should implement and have controls in place to ensure the annual Project and Expenditure Reports are accurate.