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 - CW 5912A 2026 2021 Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - 2 CFR 200.403(f) Not be included as a cost or used to meet cost sharing requirements of any other federally financed program in either the current or a prior period. Condition - The City applied the same expenses to pass through and direct funded awards, which resulted in reported quarterly reports and SEFA expenditures including approximately $2.7 million of expenditures that were being double counted. Questioned Costs - N/A If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - The City applied approximately $2.7 million to the direct funded ARPA funds that were already reimbursed under CSLFRF pass through agreements. Cause and Effect - Direct CSLFRF funds were utilized for various water projects that were already reimbursed under CSLFRF pass through agreements, which resulted in an overstated expenditure amount reported on the City's initial SEFA shared with the auditors and reporting for direct CSLRFR being incorrect for the year. Recommendation - We recommend that the City implement stronger internal controls to ensure the reports are reviewed for completenss and accuracy. Views of Responsible Officials and Corrective Action Plan - The City will ensure that all future expenses under this program are in compliance and under CSLFRF guidelines.