Finding 36674 (2022-015)

Condition: The City appears to have failed to comply with the Tier 5 reporting requirement associated with the American Recovery Plan (ARP) State and Local Fiscal Recovery Funds (SLFRF). Criteria: As a Tier 5 reporter, the City is required to submit an annual project expenditures report by April 30 each year reporting fiscal year expenditures occurring from April 1 through March 31 of the preceding fiscal year. Cause: The City Clerk thought that she had appropriately submitted the report in a timely fashion, however could not produce documentation to verify the submission. The auditor downloaded the April 2022 quarterly and annual reporting data and could not locate the City?s expenditure of $38,668 which occurred prior to March 31, 2022. Effect: Failure to comply with reporting requirements to which the federal award is subject. Recommendation: Future report submissions should be made on a timely basis with documentation retained of compliance with those reporting requirements. Future submissions should include the amounts which failed to be reported with the prior reporting period in order to appropriately reflect cumulative project costs on which the funds were expended. Management?s Response: Management concurs with the finding and has agreed to establish and fund the required reserve funds.