Finding Text
Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing No.: 21.027 Federal Agency: U.S. Department of the Treasury Passed-through: N/A – direct award Award Number and Year: ARPA Compliance Requirement: Other Type of Finding: Material Weakness in Internal Control over Compliance Criteria: Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that management prepare schedule of expenditures of federal awards (schedule) showing the correct assistance listing (AL) numbers and program names. Condition: During the current year single audit, it was discovered that $7,890,063 in federal expenditures were misreported as AL #21.019. The Compliance and Reporting Guidance, published by the United States Department of the Treasury stipulated that grant awards that had issued under section 9901 of the American Rescue Plan Act should be reported under AL #21.027. Cause: The United States Department of the Treasury initially issued the grant award with AL #21.019 and the City did not review the additional guidance provided by the Department of Treasury that stipulated the AL change. Effect: A significant portion of the Coronavirus State & Local Fiscal Recovery Fund (CSLFRF) expenditures were properly identified as part of the program resulting in an understatement of the program. Questioned Costs: None Reported. Context/Sampling: Misstatement identified while testing SEFA. Repeat Finding from Prior Year: Yes. Recommendation: We recommend that the City review up-to-date guidance on all grant programs that is received to ensure correct reporting. Views of Responsible Officials and Planned Corrective Action: See separate corrective action plan.