Finding Text
2022-001 - Reporting (SD, NC)
Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds
Federal Catalog Number: 21.027
Federal Agency: U.S. Department of Treasury
Category of Finding: Reporting
Criteria: Pursuant to the Office of Management and Budget (OMB) 2 CFR Part 200, Appendix XI,
Compliance Supplement July 2022 Part 4 21.027 Coronavirus State and Local Fiscal Recovery Funds
(page 4-21.027-7), the annual reporting requirement for Coronavirus State and Local Fiscal Recovery
Funds is through the submission of the initial Interim Report, quarterly Project and Expenditure Report,
and the Recovery Plan Performance Report. The interim report is a one time report that provides an initial
overview of status and use of funding. The Project and Expenditure Report details the financial data,
projects funded, expenditures and contracts over $50,000. The Recovery Plan Performance report is not
a required report for the City due to their population size falling under the 250,000 requirement.
Condition: During our audit, the City was unable to provide evidence of reporting for fiscal year 2022.
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 2022.
Statistical Sampling Validity: Not applicable. No sampling was performed.
Repeat of a Prior-Year Finding: Yes, 2021-003
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. The staff responsible for this control during FY 2022 are no longer employed by the City.
Corrective Action Plan: Current City Finance staff in conjunction with a third-party organization,
Michael Baker, to ensure timely filing.
Planned Implementation Date: started in Q4 FY 2023 and has continued into FY 2024