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, the determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Per 2 CFR 200.502(a)(1), expenditure/expense transactions associated with grants, cooperative agreements, cost reimbursement contracts under the FAR, compacts with Indian Tribes, and direct appropriations are included. Condition The City did not report certain federal expenditures on the Schedule of Expenditures of Federal Awards (SEFA). 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 The City is utilizing several sources of funding to improve their utility systems. The amount expended was not orginally classified as a federal expenditure for the year ended June 30, 2024, and therefore was not included on the SEFA. However, it should have been reported as an expenditure of ARPA funds. Cause and Effect The City did not have a control to place to properly identifiy expenditures of federal awards on the SEFA. As a result, the orginal expenditures for APRA were understated by $1,180,649. Recommendation We recommend that the City review award agreements and track expenditures associated with awards for proper inclusion on SEFA. Views of Responsible Officials and Planned Corrective Actions The City will ensure that all future expenditures are tracked and reported to the proper periods and recorded appropriately.