Finding 384394 (2022-008)

Department of the Treasury, Passed through North Dakota Office of Management and Budget Federal Financial Assistance Listing 21.027 COVID‐19 – Coronavirus State and Local Fiscal Recovery Funds Reporting Material Weakness in Internal Control over Compliance Criteria –Recipients of federal financial assistance through the Coronavirus State and Local Fiscal Recovery Funds program were required to submit an annual Project and Expenditure Report showing amounts expended in the current period and the cumulative expenditures for the award. Condition – The amounts reported as expended in the current period and cumulative expenditures for the award did not agree with the amounts supported by the City’s accounting records. Cause – The City does not have an internal control system designed to provide for the accurate completion and review of the Project and Expenditure Report. Effect – The Project and Expenditure Report that was submitted does not accurately report the amounts expended during the current period and cumulative expenditures under the award. Questioned Costs – None reported. Context/Sampling – The entire population of 1 report was selected for testing. Repeat Finding from Prior Year(s) – No. Recommendation – The City should review its internal control over compliance processes surrounding the reporting function to ensure that reports are accurately prepared and reviewed for agreement with the accounting records before they are submitted. Views of Responsible Officials – There is no disagreement with the audit finding.