Finding Text
Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Federal Catalog Number: 21.027 Federal Agency: U.S. Department of Treasury Category of Finding: Reporting Criteria: Pursuant to the Office of Management and Budget (OMB) 2 CFR Part 200, Appendix XI, Compliance Supplement May 2024 Part 4 21.027 Coronavirus State and Local Fiscal Recovery Funds (page 4-21.027-7), the annual reporting requirement for Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) is through the submission of the initial Interim Report, quarterly Project and Expenditure Report, and the Recovery Plan Performance Report. The interim report is a one-time report that provides an initial overview of status and use of funding. The Project and Expenditure Report details the financial data, projects funded, expenditures and contracts over $50,000. The Recovery Plan Performance report is not a required report for the City due to their population size falling under the 250,000 requirement. Condition: One of the four quarterly performance reports was submitted beyond the 30 day deadline after quarter end for the Coronavirus State and Local Fiscal Recovers Funds (CSLFRF). Cause: Lack of appropriate control over reporting, mainly due to turn-over in City personnel. Effect or Potential Effect: Noncompliance may result in termination of the grants, reduction in future payments or funding amounts, repayment of federal funds already received and spent, imposed fines and penalties, reputational damage, special status for oversight and reviews, need for corrective action plan, and/or suspension or debarment. Questioned Cost: None. Context: The responsible party at the City did not timely submit the report due to turnover with the City and consultants. Statistical Sampling Validity: Not applicable. No sampling was performed. Repeat of a Prior-Year Finding: No Recommendation: The City should design and establish internal controls over reporting, which should include a process to ensure timely submission and review of reports. Management Response and Corrective Action Plan City’s Response: The City concurs with the recommendation. Corrective Action Plan: The City’s finance department has taken over reporting duties and has ensured all reporting related to CSLFRF is done on a timely basis. Planned Implementation Date: Resolved, implemented in December of 2024.