Finding 1170935 (2024-007)

Federal Program American Rescue Plan Act, Assistance Listing No. 21.027 Criteria Per U.S. Treasury American Rescue Plan Act reporting requirements and 2 CFR §200.328, recipients are required to submit complete and accurate Project and Expenditure reports in a timely manner as prescribed by the grantor. Condition The entity did not submit the required Project and Expenditure report for the American Rescue Plan Act program by the applicable federal due date. Cause The entity did not have a formal process or monitoring control in place to ensure American Rescue Plan Act Project and Expenditure reporting deadlines were identified, tracked, and met. Effect Failure to submit Project and Expenditure reports timely may result in delayed reimbursements, increased risk of noncompliance with federal requirements, potential questioned costs, and could negatively impact future ARPA funding or other federal grant awards. Questioned Costs None. Recommendation We recommend the City implement internal controls to perform a timely closing of the audit, which would include the preparation of the schedule of expenditures of federal awards. This would allow for the timely submission of required report to the federal government. Repeat Finding Not repeating. Managements Response See Corrective Action Plan.