Finding 1222601 (2025-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-06-30
Audit: 406187
Organization: City of Chillicothe (OH)

AI Summary

  • Core Issue: The City failed to submit required semi-annual progress reports and an annual financial report on time, violating federal reporting requirements.
  • Impacted Requirements: Reports were due within 30 days for semi-annual and 90 days for annual submissions, as per 2 CFR 200.328.
  • Recommended Follow-Up: The City should establish better procedures to ensure timely compliance with federal reporting deadlines.

Finding Text

The EPA assistance agreement, in accordance with 2 CFR 200.328, required the recipient to submit semi-annual progress reports and an annual financial report by the dates specified in the award. Recipients must use the standard financial reporting forms or such other forms as may be authorized by OMB (approval is indicated by an OMB paperwork control number on the form) when reporting to the Federal awarding agency. Each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the Federal awarding agency. If the Federal awarding agency requires reporting of accrual information and the recipient’s accounting records are not normally maintained on the accrual basis, the recipient is not required to convert its accounting system to an accrual basis but may develop such accrual information through analysis of available documentation. The Federal awarding agency may accept identical information from the recipient in machine-readable format, computer printouts, or electronic outputs in lieu of closed formats or on paper. The standard financial reporting forms for grants and cooperative agreements are as follows: - Federal Financial Report (FFR) (SF-425/SF-425A) (OMB No. 0348-0061)). Recipients use the FFR as a standardized format to report expenditures under Federal awards, as well as, when applicable, cash status (lines 10.a, 10.b, and 10c). References to this report include its applicability as both an expenditure and a cash status report unless otherwise indicated. The recipient or subrecipient must submit financial reports as required by the Federal award. Reports submitted annually by the recipient or subrecipient must be due no later than 90 calendar days after the reporting period. Reports submitted quarterly or semiannually must be due no later than 30 calendar days after the reporting period (2 CFR 200.328(c). Performance and Special Reporting Non-Federal entities may be required to submit performance reports at least annually but not more frequently than quarterly, except in unusual circumstances, using a form or format authorized by OMB (2 CFR 200.329(c)(1)). They also may be required to submit special reports as required by the terms and conditions of the Federal award. Per the conditions of the award, the City was required to submit semi-annual progress reports and an annual financial report. During the audit period, the City did not submit the first progress report on time and the second report was not submitted. We also found that the financial report was submitted outside of the 90 day time period in which it should have been submitted. The City should implement additional procedures to ensure compliance with federal reporting requirements.

Corrective Action Plan

The City will review due dates to ensure proper reporting requirements are met.

Categories

Reporting

Other Findings in this Audit

  • 1222600 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.202 CONGRESSIONALLY MANDATED PROJECTS $2.85M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.58M
20.509 FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM $201,419
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $140,214
16.575 CRIME VICTIM ASSISTANCE $25,366
10.727 INFLATION REDUCTION ACT URBAN & COMMUNITY FORESTRY PROGRAM $6,436
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $2,881