Finding 1216364 (2024-003)

Federal Program COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Criteria The City utilizes a separate governmental fund to account for all State and Local Fiscal Recovery Fund transactions. This fund is then used to complete the quarterly reports required under the grant. Condition During the 2024 fiscal year, grant expenditures related to a Commonwealth of Pennsylvania grant (see finding 2024-001) for the public safety building were reported in the American Rescue Plan fund. Since they were reported in the American Rescue Plan fund they were then included in the report submitted for that time period. Cause The decentralized grant administration at the City lead to missing communication between the departments and the improper accounting for the public safety building grant. Effect The City accounted for this Commonwealth of Pennsylvania grant within the American Rescue Plan Fund which lead to the understatement of grant activity in the grant fund and overstated activity within the American Rescue Plan Fund as well as the American Rescue Plan reporting. Questioned Costs None. Context Management detected this public safety building grant of $500,000 reported in the American Rescue Plan Fund during the budget review of activity for the 2026 budget. This discovery also noted that the grant proceeds were never requested for reimbursement from the Commonwealth of Pennsylvania. Repeat Finding No. Recommendation The City should continue to refine its grant administration and accounting functions to allow for a seamless accounting for grant awards. The current decentralized structure for grant administration can allow for grants awarded to not be properly accounted for and grant reimbursement or expenditures not performed timely. Management Response See corrective action plan included in this reporting package.