Finding 1228550 (2024-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-09-01
Audit: 410173
Organization: CITY OF CLYDE (OH)

AI Summary

  • Core Issue: The City failed to submit required quarterly program reports for 2024 due to weak internal controls over reporting.
  • Impacted Requirements: This non-compliance violates 2 CFR § 200.329(c)(1) and the Ohio Department of Development grant agreement, risking reimbursement and future grant eligibility.
  • Recommended Follow-Up: The City should strengthen internal controls to ensure timely submission of reports in line with federal and state requirements.

Finding Text

2 CFR § 1000.10 provides that, except for the deviations set forth elsewhere in this Part, the Department of Treasury adopts the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards set forth at 2 CFR Part 200. CFR § 200.302(a) states, in part, the non-Federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by the terms and conditions ; and tracking expenditures to establish that funds have been used in accordance with Federal statutes, regulations, and the terms and conditions of the Federal award.. 2 CFR § 200.302(b)(2) states, in part, the financial management system of each non-Federal entity must provide for accurate, current, and complete disclosures of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 and 200.329. 2 CFR § 200.329(c)(1) further states, in part, the recipient or subrecipient must submit performance reports as required by the Federal award. Intervals must be no less frequent than annually nor more frequent than quarterly except if specific conditions are applied set forth in § 200.208. Additionally, the Ohio Department of Development (ODOD) Water and Wastewater Infrastructure Program Grant Agreement provides in Exhibit II that "Program reports must be submitted on a quarterly basis. Program reports must be submitted by close of business, on the second Friday at the end of each quarter.” Due to deficiencies in the City’s internal controls over reporting, the City did not submit quarterly program reports for any quarter in 2024. Failure to submit required quarterly program reports could result in the City not receiving the reimbursements that it is entitled to as well as adversely impact future grant awards. The City should implement internal controls to help ensure that reports are submitted by the required deadlines per reporting requirements.

Corrective Action Plan

The reporting for these has been updated and submitted. In 2024, I was not a part of the e-mail directing these to me - corrected and now processed timely.

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $2.53M