Finding Text
Finding 2022-001 Significant Deficiency in Internal Control Over Compliance ? U.S. Department of Treasury ? Coronavirus State and Local Fiscal Recovery Funds ? (Federal Assistance Listing Number 21.027) ? Reporting Criteria: Recipients of Coronavirus State and Local Fiscal Recovery Funds are required to file Project and Expenditure Reports on a regular, recurring basis. For local governments that are in the tier which the City of Pittsfield is in, the reporting is required quarterly. The Project and Expenditure Reports require information to be reported on financial data, projects funded, expenditures, and contracts and subawards over $50,000, and other information. The financial data and expenditures reported should reflect the financial activity and expenditures on the municipal general ledger. Condition: The City of Pittsfield did submit quarterly Project and Expenditure Reports. However, we noted that the June 2022 report did not accurately reflect the expenditures on the City?s general ledger. Cumulative Expenditures reported were $2,098,712.98, but the City?s general ledger had only $1,843,659.90 total expenditures, with the reported expenditures $255,053.08 higher than the general ledger expenditures. We noted there was one invoice for the Ashley Water Treatment Facility for $235,017.58 that was paid on April 21, 2022 that appears to have been reported twice. The amount was included on the January-March 2022 report and also on the April-June 2022 report. The personnel in charge of administering the program have identified six other expenditures that were reported twice for a total of $18,607.30, leaving an unidentified variance of $1,428.20, which may be a difference in reporting salaries charged to the program. Cause: It appears that when the Project and Expenditure (P&E) reports were filed, there was no reconciliation back to the City?s accounting records of cumulative expenditures. The project administration had relied on reports provided to them that had the expenditures in question on both quarters? reports. Effect: The amount of total expenditures on the Project and Expenditure Reports is misstated and does not reflect the true total costs charged to the program. Questioned Costs: None reported. Recommendation: The City should establish procedures to reconcile the amounts reported as expended on the Project and Expenditure Reports to the City?s MUNIS general ledger. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan following on page 17.