Finding Text
2023-001 L Reporting Compliance Requirement (Significant Deficiency in Internal Controls over Compliance and Noncompliance)
Reference Number: 2023-001
L. Reporting Compliance Requirement
ALN 21.027 Coronavirus State and Local Fiscal Recovery Fund
Federal Award Agreement Number: 17460025442
Award Year: 2022-2023
Federal Agency: U.S. Department of Treasury
Criteria: Non‐federal entities are required to establish and maintain
effective internal controls over compliance in accordance with 2
CFR 200.328 and 31 CFR section 35.4 (c), states 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.
Condition Found: During our review of the quarterly reporting process, CRI identified
one quarterly report was not submitted and no documentation
was maintained to support evidence that the report was reviewed
and submitted.
Cause: Documentation regarding Q1 2023 project and expenditure report
was not maintained.
Effect: The Department of Treasury uses the reports internally for
oversight purposes and to fulfill Treasury’s transparency and legal
obligations. The results of the City not submitting a report timely
could lead to a finding of non‐compliance, which could result in
development of corrective action plan or other consequences.
Questioned Cost: $0
Recommendation: We recommend the City to document and maintain all quarterly
reports that are submitted through the portal and include a printout
of all reports submitted.
Views of Responsible Officials: Management agrees with the findings. See corrective action plan
beginning on page 228.