Finding Text
U.S. Treasury Department Federal Financial Assistance Listing 21.027
COVID-19 Coronavirus State and Local Fiscal Recovery Funds
Compliance Requirement – Reporting
Material Weakness in Internal Control over Compliance
Criteria:
Non-federal entities may be required to submit performance reports at least annually but not more frequently than quarterly, except in unusual circumstances, using a form or format authorized by OMB (2 CFR section 200.329). They also may be required to submit special reports as required by the terms and conditions of the federal award. For the Coronavirus State and Local Fiscal Recovery Funds, the City is required to submit the Project and Expenditure Report quarterly.
Condition: We noted that while the City submitted the reports as required, the reports contained errors including incorrect amounts and reporting information on the incorrect line items.
Cause:
The City did not have processes in place to ensure that amounts and information being reported to the Treasury contained accurate and complete information, and that the information being reported was on the correct line.
Effect:
The City submitted inaccurate reports to Treasury. While the City ultimately corrected the reports with their final annual report submission, the timing of the corrected report was outside the Treasury allowed timeframe of 60 days after the report.
Questioned Costs:
None reported.
Context/Sampling:
Sampling was not used as 100% of the reports that were required to be submitted were tested.
Repeat Finding from Prior Year(s):
No
Recommendation:
The City should review their current practices and procedures for federal compliance reporting to ensure that the information being reported is complete and accurate.
Views of Responsible Officials:
The City concurs with the auditor’s findings.