Finding 20172 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2022-11-28
Audit: 27263
Organization: City of Adrian (MI)

AI Summary

  • Core Issue: The City inaccurately reported $2,164,828 in expenditures, while actual support showed only $235,296.
  • Impacted Requirements: The City failed to comply with U.S. Treasury reporting requirements due to errors in financial reporting.
  • Recommended Follow-Up: Implement procedures to ensure accurate reconciliation between reported amounts, general ledger, and underlying support.

Finding Text

Criteria: U.S Department of the Treasury established reporting requirements for local governments. These requirements established methods and timelines for reporting Coronavirus State and Local Fiscal Recovery Fund expenditures. Condition: The City had errors in the accuracy of the amounts included in the submitted reports that did not reconcile with the general ledger amounts or the Schedule of Expenditures of Federal Awards. Context: We reviewed the interim report submitted that reported total cumulative expenditures of $2,164,828 while the underlying support totaled $235,296 in cumulative expenditures for the reporting period. The City over reported total cumulative expenditures on the interim report. Cause: The City misinterpreted guidance presented in a webinar. Effect: The City was not in compliance with reporting requirements in 2022. Recommendation: We recommend the City implement procedures to ensure the City reconciles between the underlying support, general ledger, and what is being reported.

Corrective Action Plan

CORRECTIVE ACTION PLAN 2 CFR ? 200.511(c) June 30, 2022 2022-001 -As an action plan for this item, the Finance Director will correct the report that has been filed and reconcile between the underlying support and what is being reported. 4-30-2023 Nathan Owen, Finance Director.

Categories

Reporting

Other Findings in this Audit

  • 596614 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $623,512
97.044 Assistance to Firefighters Grant $559,265
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $124,805
20.509 Formula Grants for Rural Areas and Tribal Transit Program $14,154
16.607 Bulletproof Vest Partnership Program $2,200