Finding Text
Cause: The condition was primarily due to inadequate internal controls over federal grant reporting, including insufficient monitoring of reporting deadlines, compounded by turnover in City personnel responsible for CSLFRF compliance. Effect or Potential Effect: Failure to submit required federal reports in accordance with program requirements constitutes noncompliance with CSLFRF reporting requirements and may result in increased federal oversight, required corrective actions, withholding of future funding, repayment of funds, or other enforcement actions by the granting agency. Questioned Cost: None. The reporting deficiencies did not directly result in questioned costs. Context: According to the Assistant City Manager, the City was unable to provide the required CSLFRF reporting documentation or evidence of submission for FY 2024 during the audit period. Management further indicated that CSLFRF reports for FY 2025 were subsequently submitted; however, such submissions were outside the scope of the audit period and did not provide evidence of compliance with FY 2024 reporting requirements. Statistical Sampling Validity: Not applicable. No statistical sampling was performed. Repeat of a Prior-Year Finding: 2022-004. Recommendation: The City should design and implement effective internal controls over federal grant reporting to ensure compliance with CSLFRF reporting requirements. Such controls should include clearly assigned reporting responsibilities, documented reporting timelines, procedures for timely submission through the Treasury reporting portal, and retention of supporting documentation evidencing report submission. Management Response and Corrective Action Plan City's Response: The City concurs with the recommendation. Corrective Action Plan: The new Grants policy will be reviewed and approved by the City Manager and implemented by June 2026. Community Development staff will ensure a succession plan is in place for any staff turnover and for report preparation compliance. Planned Implementation Date: June 2026 Responsible Person(s): City Manager