Finding Text
2025-004 Reporting ALN 21.027 Coronavirus State and Local Fiscal Funds US Department of the Treasury Fiscal Year 2025 Funding Grant Y5314 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: The City’s controls over reports issued to U.S. Treasury failed to operate correctly as the underlying data contained errors which were noted on the report issued to the US Treasury. Cause of the condition: The City did not have a proper review of the underlying data for the reports sent to the US Treasury as the underlying data caused the reports to be incorrect. Potential effect of condition: Reports submitted could contain errors or could be incomplete. Questioned costs: None noted. Reported finding is a deficiency in internal control. Recommendation: The City should review the underlying data along with the report to ensure the report agrees with the support and the underlying data is correct. Management Response: Management recognizes the importance of accurate and complete reporting to the U.S. Treasury. While procedures were in place, the review of underlying data was not sufficient to ensure accuracy and completeness prior to submission. The issue was limited to a single report and was corrected in the subsequent U.S. Treasury reporting cycle in accordance with program requirements. To prevent recurrence, management has enhanced its review procedures over grant reporting to include reconciliation of underlying data and validation checks for inconsistencies prior to report submission. Additionally, a secondary level of review will be performed to ensure reports are complete and accurate before submission to the U.S. Treasury.