Finding Text
2021-003 – Reporting (NC/SD)
Federal Program Title: Equitable Sharing Program
Federal Catalog Number: 16.922
Federal Agency: U.S. Department of Justice
Category of Finding: Reporting
Criteria: Pursuant to the Office of Management and Budget (OMB) 2 CFR Part 200, Appendix XI,
Compliance Supplement July 2021 Part 4 16.922 Equitable Sharing Program (page 16.922-3), the annual
reporting requirement for equitable sharing funds is through the submission of the annual Equitable
Sharing Agreement and Certification (ESAC) form. Agencies report on the ESAC the amount of funds
received and how they were expended in general categories such as equipment and training.
Condition: During our audit, the City was unable to provide evidence of reporting for fiscal year 2021.
Cause: Lack of appropriate control over reporting, mainly due to turn-over in City personnel.
Effect or Potential Effect: Noncompliance may result in termination of the grant, reduction in future
payments or funding amounts, repayment of federal funds already received and spent, imposed fines
and penalties, reputational damage, special status for oversight and reviews, need for corrective action
plan, and/or suspension or debarment.
Questioned Cost: None.
Context: The City was unable to provide evidence that the appropriate reports were submitted for fiscal
year 2021.
Statistical Sampling Validity: Not applicable. No sampling was performed.
Repeat of a Prior-Year Finding: No.
Recommendation: The City should design and establish internal controls over reporting, which should
include maintaining copies of reports submitted for audit
Management Response and Corrective Action Plan
City’s Response: The City Concurs with the finding. Staff responsible for this control during FY
2021 are no longer employed by the City.
Corrective Action Plan: Current City Finance staff in conjunction with Police Department staff are
monitoring ESAC reporting processes.
Planned Implementation Date: started in Q4 FY 2023 and has continued into FY 2024
Responsible Person: Finance Department staff