Finding Text
Finding No. SA 2025-003 – Untimely Submission of Project and Expenditure Report 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: Significant Deficiency in Internal Control over Compliance Criteria: Per OMB Compliance Supplement and Compliance and Reporting Guidelines issued by the U.S. Department of Treasury for the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program, the Project and Expenditure Reports should be submitted on the last day of the month after the end of each quarter. Condition: The City did not submit the Project and Expenditure Report within the required reporting timeframe for the following quarter: Quarter Months Deadline Date Submitted Lag in Days 2024-3 July 1 - September 30, 2025 10/31/2024 11/1/2024 1 Cause: Due to the transition of the City’s Finance Director, the Accounting Manager did not have timely access to the CSLFRF reporting portal and was working with program administrators to obtain the required access, resulting in a delay in report submission. Effect: Late submission of the Project and Expenditure Report constitutes noncompliance with CSLFRF reporting requirements and may result in sanctions imposed by the U.S. Department of the Treasury, including fines, penalties, or the suspension or termination of federal award funding. Questioned Costs: None. Repeat finding: Yes. See Summary Schedule of Prior Year Audit Findings (SA 2024-003). Recommendation: We recommend that the City strengthen procedures to ensure continuity of reporting access and strictly adhere to reporting deadlines established by the U.S. Department of the Treasury. Views of responsible officials and planned corrective actions: The Accounting Manager assumed responsibility for the quarterly Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) reporting process following the unexpected departure of the former Finance Director. Due to the abrupt transition and issues associated with obtaining access to the portal, the entity experienced a delay in submitting the Q1 2025 Project and Expenditure Report by the required deadline. Views of responsible officials and planned corrective actions (Continued): Management acknowledges the importance of timely compliance with federal reporting requirements. Since access to the Treasury reporting portal was established, all subsequent Project and Expenditure Reports have been submitted timely. Personnel responsible for implementation: Veronica Alvarez, Deputy Finance Director Completion Date: June 30, 2026