Finding 1205932 (2025-005)

2025-005 Lack of Report Review 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds US Department of Treasury 2021 Funding Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Reports should be subject to independent review to verify completeness, validity and timeliness of submission. Condition: There was no documented review by the City Manager of the annual report submitted to the Us Treasury department prior to submittal. Cause of condition: The annual report to the US Treasury was not reviewed prior to submittal. Perspective (context): The one annual report was not reviewed. Potential effect of condition: Review could contain errors, could be submitted incomplete or late. Questioned Costs: None noted. Reported finding is a deficiency in internal control. Recommendation: The City should have controls in place to ensure all reports are reviewed prior to submittal. Management’s response on planned corrective action: Management agrees that reports should be reviewed prior to submission and notes that the City does have controls in place to ensure appropriate review procedures are performed. In this instance, the report was prepared and submitted by the City Manager, and due to limitations within the Federal Government’s online reporting system, there was not a built-in approval workflow available to document the review process.