Finding Text
2025-002 – Late and Unsubmitted Reporting of Federal Expenditures Assistance Listing: 21.027 Federal Program: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: Department of the Treasury Award Year: 2025 Criteria: According to federal grant reporting requirements, Metropolitan cities and counties with a population below 250,000 residents, which received more than $10 million in funding are required to submit Project & Expenditure Reports within 30 days of the end of each fiscal quarter. Condition: During the fiscal year, the City had Project & Expenditure Reports which were either not submitted or were submitted more than 30 days after the end of the fiscal quarter. Cause: The City did not have adequate controls in place to ensure that Project & Expenditure Reports were being filed in a timely manner. Effect: Late and unsubmitted Project & Expenditure Reports could lead to noncompliance with federal award requirements, potential funding adjustments, and increased risk of audit findings. Questioned Costs: Not applicable. Context: The Project & Expenditure Report for the first quarter of the fiscal year was required to be submitted by October 31, 2024, however no report was submitted. Additionally, the report for the second quarter of the fiscal year was required to be submitted by January 31, 2025, but was submitted on April 7, 2025. Recommendation: The City should evaluate the controls in place over the CSLFRF program to ensure that Project & Expenditure Reports are being filed in a timely manner. Management’s Response: The City of Martinsville has experienced a large turnover in staff the last two years and this has resulted in a drain of institutional knowledge. We have engaged a CPA firm coming in the months of May and June to help with our internal controls, processes and procedures to hopefully correctly the issues now and moving forward.