Finding Text
Criteria The grant terms and 2 CFR § 200.329 require recipients to submit performance reports in the form, frequency, and timeframe established by the federal awarding agency. Reports should accurately describe program accomplishments, progress toward established objectives, reasons for delays, and relevant financial or project information. Condition Performance reports submitted to the U.S. Environmental Protection Agency (“EPA”) for the period under audit were not accurate and required multiple revisions. The EPA notified the Town that it was not in compliance with the grant terms until a correct report was submitted. In addition, the Town did not have written procedures to identify, track, prepare, review, and submit required performance reports. Instead, the Town relied on reminders from EPA regarding reporting deadlines and requirements. Cause The Town had not established formal grant-reporting procedures for this program or assigned sufficient oversight to ensure that responsible personnel understood the reporting requirements and verified reports against the grant agreement, approved workplan, and supporting records before submission. Effect The Town was not in compliance with the grant’s reporting requirements until corrected reports were submitted. The absence of procedures also increases the risk that future reports will be inaccurate, incomplete, or submitted late, which could delay grant actions or result in other federal remedies. Questioned Costs Unknown Recommendation We recommend that the Town establish written procedures for federal performance reporting that include a reporting calendar, assigned responsibilities, supervisory review, verification against grant and financial records, timely submission, and retention of documentation demonstrating federal acceptance. Views of Responsible Officials Management agrees with this finding. Community Development will establish written procedures for federal performance reporting that includes a reporting calendar, assigned responsibilities, supervisory review, verification against grant and financial records, timely submission and retention of documentation demonstrating federal acceptance.