Finding Text
Finding No. SA 2025-002 – Noncompliance with CSLFRF Period of Performance Requirements Federal Assistance Listing Number: 21.027 Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of Treasury Award Period: Fiscal year 2025 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: Per OMB Compliance Supplement and Compliance and Reporting Guidelines issued by the U.S. Department of Treasury for Coronavirus State and Local Fiscal Recovery Funds, no new obligations or costs may be incurred during the period beginning January 1, 2025 and ending on December 31, 2026. During this two-year period from January 1, 2025, through December 31, 2026, recipients are only permitted to expend funds to satisfy obligations incurred or CSLFRF funds obligated by December 31, 2024. Condition: The City incurred and reported expenditures totaling $10,764 during the period from January 1, 2025 through June 30, 2025, which were not related to CSLFRF funds obligated on or before December 31, 2024. Cause: The City did not have adequate internal controls, policies, and procedures in place to monitor compliance with the CSLFRF period of performance requirements. Effect: Expenditures incurred after the allowable obligation period constitute noncompliance with CSLFRF program requirements and may result in questioned costs, repayment of funds, or other sanctions, including fines, penalties, or the suspension or termination of federal awards. Questioned Costs: $10,764 Repeat finding: No. Recommendation: We recommend that the City strengthen controls over monitoring the period of performance for CSLFRF funds to ensure that expenditures are incurred only in accordance with U.S. Department of the Treasury requirements. Views of responsible officials and planned corrective actions: The Finance Department staff will review all items prior to completing the report. Personnel responsible for implementation: Carmen Tsui, Grant Accountant Completion Date: June 30, 2026