Finding Text
Federal Agency: U.S. Department of the Treasury Federal Program: American Rescue Plan Act/Coronavirus State and Local Fiscal Recovery Funds (ARPA) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: FAIN – SLFRP2608 and 2021 Pass-Through Agency: Pennsylvania Department of Community and Economic Development Pass-Through Number(s): Not Applicable Award Period: March 3, 2021 to December 31, 2024 Finding Type: Significant Deficiency in Internal Control Over Compliance and Noncompliance - Reporting Criteria The U.S. Department of the Treasury's Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance requires certain recipients to prepare and submit an annual Recovery Plan Performance Report and make the report publicly available. Recipients are responsible for maintaining internal controls that provide reasonable assurance reports are prepared, reviewed, approved, and submitted in accordance with applicable federal requirements and deadlines. Condition : The Township did not submit the required annual Recovery Plan Performance Report for the SLFRF program during the reporting period. Additionally, the Township did not maintain adequate internal controls to ensure federal reporting requirements were identified, monitored, reviewed, and completed on a timely basis. Context : During our testing of reporting requirements for Assistance Listing 21.027, we reviewed the Township's compliance with Treasury reporting requirements and determined the required annual Recovery Plan Performance Report had not been submitted. Cause : The Township lacked formal procedures and monitoring controls to identify reporting obligations, track reporting deadlines, assign responsibility for report preparation, and perform supervisory review prior to submission. Effect or Potential Effect Failure to submit required reports results in noncompliance with federal award requirements and may reduce transparency regarding program performance. In addition, continued reporting deficiencies may increase oversight by the federal awarding agency and could result in additional administrative actions or restrictions on future federal funding. Questioned Costs : None identified. Repeat Finding : No. Recommendation : We recommend the Township strengthen its internal controls over federal grant reporting by assigning responsibility for monitoring grant requirements, maintaining a centralized calendar of reporting deadlines, implementing supervisory review procedures prior to report due dates, and retaining documentation evidencing the preparation, review, and submission of required reports. Views of Responsible Officials and Corrective Action Plan There is no disagreement with the audit finding. The Township will adopt written policies and procedures governing federal funds. These policies include review of the reporting requirements of the grant upon the grant award to ensure reporting compliance and maintaining a centralized calendar of reporting deadlines.