Finding 396206 (2023-002)

2023-002 Reporting Federal Agency: U.S Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year: SLFRP1761 2021 Assistance Listing Number: 21.027 Award Period: March 3, 2021, through December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of monitoring and reporting program performance. Metropolitan cities and counties with a population below 250,000 residents that are allocated more than $10 million in SLFRF funding are required to submit quarterly Project and Expenditure Reports that cover one calendar quarter and must be submitted to Treasury by the last day of the month following the end of the period covered. Condition: Quarterly Project and Expenditure Reports were not submitted timely, within 30 days of period end to the U.S. Department of Treasury, as required. Questioned Costs: None Context: During our testing, we reviewed all four Quarterly Project and Expenditure for the period. We noted that two of four Quarterly Project and Expenditure Reports reviewed were not submitted within 30 days of period end, as required. Cause: Policies and procedures were not established to ensure the timely filing of reports. Repeat Finding: No Effect: The City was not in compliance with the reporting requirements as specified in the grant agreement. Recommendation: We recommend that the City design processes and procedures to ensure that all reports are submitted timely as required by grant agreements. We recommend the City develop an internal compliance checklist that includes required reports and due dates to be maintained for tracking and record keeping purposes to assist in monitoring compliance. Views of responsible officials: Management agrees with the above finding and recommendation. However, as a checklist is already in place, the City will evaluate and work with the Department of Treasury for ways to overcome the technical issues encountered, and acknowledged by the Department, that restricts the filing of reports in a timely manner and will continue to closely monitor the quarterly filings with the Department.