Finding 38829 (2022-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-25
Audit: 34705
Organization: City of Springfield (OH)

AI Summary

  • Core Issue: The City failed to update SLFRF project reports for quarters two and three of 2022, and did not complete fourth quarter reporting.
  • Impacted Requirements: Non-compliance with U.S. Department of Treasury's reporting requirements for SLFRF expenditures.
  • Recommended Follow-Up: Enhance internal controls and ensure staff responsible for reporting understand the Treasury's requirements better.

Finding Text

2022-001 ? Reporting ? Coronavirus State and Local Fiscal Recovery Funds ALN 21.027 U.S. Department of Treasury Criteria: The U.S. Department of Treasury established reporting requirements for local governments. These requirements established methods and timelines for reporting Coronavirus State and Local Fiscal Recovery Fund (SLFRF) expenditures to the U.S. Department of Treasury. Condition: The City completed the required reporting on the Treasury?s Portal for the SLFRF projects and expenditures for the first three quarters of 2022, however quarter two and three were not updated for new projects initiated during the respective periods and only included those projects reported in quarter one. Furthermore, the City did not complete the required program reporting for fourth quarter of 2022. Context: During our review of the quarterly project and expenditure reports, we were only able to agree quarter one of 2022 to the City?s accounting records. Quarter two and three reports contained only projects listed in quarter one report but did not include the additional projects allocated during the second and third quarter of 2022. The City did not complete the fourth quarter reporting as required. Effect: The City was not in compliance with reporting requirements in 2022. Cause: Lack of knowledge and sufficient internal controls over the reporting requirements of the SLFRF program. Recommendation: We recommend the City improve controls over reporting requirements associated with this program, including having individuals responsible for monitoring and reporting program activity obtain a better understanding of the reporting requirements of the Treasury reporting portal.

Corrective Action Plan

In reference to audit finding 2022-001, I will ensure accuracy of the reporting of sub recipients, subawards, accuracy in amounts reported and timely submission of all quarterly project and expenditure reports for Coronavirus State and Local Fiscal Recovery Funds effective immediately. The City is grateful for the monies provided by the SLFRF and the once in a generation impact that projects that we would have otherwise been unable to fund will have; these projects will have a long lasting impact in the community. The extensive reporting requirements established by the U.S. Department of Treasury have placed an additional burden on the City at a time when recruiting and retaining government employees, especially in finance, has been difficult. However, the City understands the importance of complying with these requirements and will work to allocate and adequately train staff on reporting requirements. The due date for the third quarter report is October 31, 2023. I will ensure the draft of this report is completed in early October and will ask our audit firm, Clark, Schaefer, Hackett & Co. to review it for compliance prior to submission.

Categories

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 615271 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.73M
12.600 Community Investment $1.32M
20.507 Federal Transit_formula Grants $886,924
11.307 Economic Adjustment Assistance $801,222
14.218 Community Development Block Grants/entitlement Grants $383,990
20.205 Highway Planning and Construction $317,841
14.231 Emergency Solutions Grant Program $198,365
20.106 Airport Improvement Program $187,185
14.238 Shelter Plus Care $113,811
16.922 Equitable Sharing Program $64,882
16.738 Edward Byrne Memorial Justice Assistance Grant Program $27,208
10.664 Cooperative Forestry Assistance $20,000
20.600 State and Community Highway Safety $14,301
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $9,556
16.607 Bulletproof Vest Partnership Program $8,115
14.256 Neighborhood Stabilization Program $3,822