Finding Text
Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number: SLFRP1134 Pass-Through Agency: New Hampshire Governor’s Office for Emergency Relief and Recovery Pass-Through Number(s): Unknown Award Period: July 1, 2024 – June 30, 2025 Compliance Requirement: Period of Performance Type of Finding: • Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: A nonfederal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity (2 CFR sections 200.308 200.309 and 200.403(h)). Specifically regarding SLFRF, recipients must obligate program funds by December 31, 2024. Condition and Context: A portion of the City’s SLFRF expenditures related to revenue loss were spent on the provision of government services. As part of the audit of the SLFRF grant, the City provided us with an initial list of expenditures related to revenue loss. We identified that some of the expenditures were not obligated by December 31, 2024. Subsequently, in accordance with question 17.19 of the U.S. Department of Treasury’s Frequently Asked Questions dated April 29, 2025, the City re-allocated some of the expenditures related to revenue loss. The re-allocated expenditures met period of performance requirements (i.e., they were all obligated by December 31, 2024). Questioned costs: None Cause: Procedures were not in place to ensure that all expenditures initially charged to the grant program were obligated by December 31, 2024 (subsequently corrected as identified above). Effect: Noncompliance with federal requirements initially occurred (subsequently corrected as identified above). Repeat Finding: No. Recommendation: We recommend procedures be strengthened to ensure that charges to the grant program are obligated and/or incurred within the period of performance. Views of responsible officials: Management agrees with the finding.