Finding Text
Assistance Listing, Federal Agency, and Program Name ALN 21.027, Department of the Treasury, COVID 19 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year SLFRP 0127 2024 Pass through Entity EHDMMWJY1735 Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding No Criteria Per 2 CFR 200.510(2), for Federal awards received as a subrecipient, the name of the pass through entity and identifying number assigned by the pass through entity must be included. Condition The City did not report federal expenditures as pass through on the orginial issuance of the June 30, 2024 single audit report. Questioned Costs None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported Not applicable Identification of How Questioned Costs Were Computed Not applicable Context $723,526 of federal expenditures orginally reported as direct should have been classified as pass through expenditures. Cause and Effect The City did not have a control to ensure the pass through awards were properly identified on the Schedule of Expenditures of Federal Awards. As a result, the original report was incorrect and $723,526 were reclassified from direct awards to pass through awards in the reissued report. Recommendation We recommend that an internal process be put in place to track awards that are pass through. Views of Responsible Officials and Planned Corrective Actions The City will ensure that all future awards under this program are in compliance and separately reported on the Schedule of Expenditures of Federal Awards. All pass-through expenditures will be reconciled to ensure accuracy going forward.