Finding Text
Disaster Grants – Public Assistance (Presidentially Declared Disasters) Assistance Listing No. 97.036 U.S. Department of Homeland Security Criteria: Reporting (44 CFR 206.204), Entities are required to maintain adequate records that support amounts reported in financial and performance reports to ensure accuracy; allow for proper oversight; and comply with applicable laws, regulations, and grant agreements. Condition: The quarterly performance reports did not agree to underlying data. Specifically, source records and supporting schedules used to compile reported information did not agree to the submitted report. Cause: The City does not have formalized procedures requiring staff to prepare and reconcile calculation worksheets that link performance report data to the underlying records. Staff indicated that calculations were performed manually. Effect or Potential Effect: Without adequate documentation supporting quarterly performance reports, reported performance data may be inaccurate, incomplete, or not fully supported. This increases the risk of noncompliance with Uniform Guidance reporting requirements, misreporting to federal agencies, and potential impacts on continued eligibility for federal funding. Questioned Costs: No unknown or questioned costs. Context: We selected a sample of three of five reports submitted during the year for detailed testing. For two of the three reports tested (66%), the amounts and performance measures reported were not supported by the underlying schedules; specifically, the reported amounts did not agree to the underlying schedules, and we noted inaccuracies in the underlying documentation used to support calculations (including aggregated output measures and derived performance indicators). The sampling methodology used is not, and is not intended to be, statistically valid. Repeat Finding: Yes Recommendation: We recommend management implement procedures ensuring that all performance report data requiring calculations are supported by reconciled worksheets that clearly document how reported amounts were derived from source records. Views of Responsible Officials: We agree with the finding. See separate report for planned corrective actions.