Finding Text
Finding 2025-005 Late Reporting and Noncompliance with Reporting Requirements Federal Agency: U.S. Department of Commerce Federal Program: Economic Development Cluster ALN: 11.307 Award Numbers: ED23SEA0G0012 Award Year: 2025 Type of Finding: Significant deficiency and noncompliance. Criteria: All recipients of federal funds must complete financial, performance, and compliance reporting as required and outlined in Part 2 of this guidance. Expenditures may be reported on a cash or accrual basis, as long as the methodology is disclosed and consistently applied. Reporting must be consistent with the definition of expenditures pursuant to 2 CFR 200.1. The nonfederal entity must submit performance reports at the interval required by the federal awarding agency or pass-through entity to best inform improvements in program outcomes and productivity as outlined in 2 CFR 200.329. Condition and context: The City did not adhere to the program requirement of submitting the financial and performance report by the deadlines set forth in the grant award. Cause: The City was not able to provide the necessary reporting documents in the required time frames set forth in the grant award. Effect: The City is not in compliance with reporting requirements. Questioned Costs: None noted. Repeat finding: This is not a repeat finding. Recommendation: The City needs to improve processes for preparing and submitting financial information timely. Management’s Response: Management concurs with the finding. See Corrective Action Plan.