Finding Text
Finding #SA2025-002: Timeliness of Invoice Payments Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Name of Federal Agency: Department of the Treasury Pass Through Entity: N/A Federal Award Identification Number: N/A Criteria: 5 CFR (Code of Federal Regulations) Section 1315.4 states that grantees must make payments as close to the due date of an invoice as possible, to ensure timeliness of payments to vendors. Condition: During our testing of expenditures, we noted four invoices that were not paid timely as follows: • One invoice was due for payment on July 24, 2024, but not paid until September 12, 2024. • Three invoices were due for payment on September 15, 2024, but were not paid until November 7, 2024 and November 14, 2024, respectively. Effect: Failure to process vendor payments in a timely manner results in noncompliance with federal prompt payment requirements and may increase the risk of late payment penalties or additional administrative costs. Cause: Based on discussions with City personnel, the delays were primarily attributable to increased workload during fiscal year-end, staffing changes, and the time required to complete the internal review and approval process. Recommendation: We recommend that the City strengthen its procedures for processing vendor payments to ensure invoices are reviewed, approved, and paid within the required timeframe. This may include implementing improved tracking of invoice due dates and establishing reminders or monitoring controls to ensure timely payment. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.