Finding 20470 (2022-002)

Criteria or specific requirement: The interim report was due by August 31, 2021, or sixty days after receiving funding, if funding was received by October 15, 2021, and should include all expenditures by category incurred. Condition: The City did not include any of the $10,918,762 of expenditures by category required with the submission of the interim report. Questioned costs: None Context: The City was required to submit an interim report by August 31, 2021, that included expenditures incurred by category. The report did not include any of the $10,918,762 of expenditures that had been incurred as of the report date. Cause: The City interpreted guidance related to the reporting that if utilizing the lost revenue category to cover the entire $10,918,762 the requirement to include the applicable expenditures by category was not applicable. Effect: The City was not in compliance with reporting requirements. Repeat Finding: Yes. Recommendation: We recommend the City implement procedures to ensure compliance with all reporting requirements. Views of responsible officials: The City agrees with the recommendation. SLRF reporting was a new requirement for the City in 2021. Despite review, preparers missed the expenditure line item on the report. The City has since implemented more robust review processes to assure each line item is properly addressed before submittal.