Finding 34896 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-02-13
Audit: 30240
Organization: City of Solvang (CA)

AI Summary

  • Core Issue: The City failed to report any expenditures in the required performance and expenditure report for the Coronavirus State and Local Fiscal Recovery Funds.
  • Impacted Requirements: Compliance with the program's reporting guidance, which mandates accurate and timely submission of cumulative obligations and expenditures.
  • Recommended Follow-Up: Update reporting policies and procedures, including independent reviews, to ensure accurate completion of future reports.

Finding Text

2022-002?Reporting. Program: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027, U.S. Department of Treasury, Direct Program. Criteria: Per the State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, Performance and Expenditure Reports required by the program includes providing cumulative obligations and expenditures. Internal controls over reporting compliance should ensure accurate, complete, and timely submission of all required reports. Condition: During the audit of the program, we noted the City did not report any expenditures in the annual performance and expenditure report submitted during the year. Cause: The City did not know expenditure reporting was required when submitting the performance and expenditure report under revenue replacement. Effect: The City did not accurately report expenditures for the program in the performance and expenditure report. Questioned Costs: None. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the City update policies and procedures over reporting, such as including additional independent reviews to ensure accurate completion. Management Response: The City will make the needed corrections in the next annual performance and expenditure report.

Corrective Action Plan

The City will make the needed corrections in the next annual performance and expenditure report.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 611338 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $698,287
20.509 Formula Grants for Rural Areas and Tribal Transit Program $221,202