Finding 396673 (2023-001)

U.S. DEPARTMENT OF TREASURY COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number 21.027 2023-001: Reporting to the Federal Government Compliance Requirement: Reporting Type of Finding: Compliance and Internal Control over Compliance – Other Matter Criteria or Specific Requirement: Grantees must comply with reporting requirements established by the U.S. Treasury that includes reporting the total grant expenditures incurred for the reporting period. Since the City is a Metropolitan City with a population below 250,000 residents that was allocated more than $10.0 million in funding, the City is required to submit, to the U.S. Department of Treasury, a project and expenditure report 30 days after the end of each quarter. The City is also required to submit quarterly reports to Bristol County no later than 15 days following the end of each fiscal quarter. Condition: The City submitted the quarterly project and expenditure report timely, however the expenditures reported as of June 30, 2023, did not reconcile with the City’s accounting ledger. Similarly, while the City submitted quarterly reports to the County timely, expenditures reported as of June 30, 2023, did not reconcile with the City’s accounting ledger. Questioned Costs: None Reported. Context: The City filed the required project and expenditure report in a timely manner, however the report submitted to the U.S. Treasury’s Portal did not reconcile with City’s accounting ledger. Similarly, the City filed the required quarterly reports to Bristol County in a timely manner, however the report submitted did not reconcile with the City’s ledger. Effect: The expenditures reported on the City’s project and expenditure report and County report were not accurate. Cause: The City did not have adequate controls in place to reconcile expenditures submitted on the project and expenditure and County reports with the City’s ledger. Recommendation: Management should implement procedures to ensure that all expenditures that are incurred in a particular reporting period are included on the applicable project and expenditure report. Additionally, the City should ensure that the omitted expenditures are reported in the next reporting submission. Views of Responsible Officials and Planned Corrective Actions: Management made a good faith effort to correctly report its expenditures to the U.S. Treasury Department and Bristol County on an accurate and timely basis. Reconciliation between the reporting and accounting ledger must be completed to ensure expenditures reported are accurate. Management expects to correct this on the subsequent period’s reporting in fiscal 2024.