Finding 400843 (2023-033)

Finding 2023-001 Assistance Listing 21.027, Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Reporting Significant Deficiency in Internal Controls over Compliance Criteria or Specific Requirement Uniform Guidance require entities receiving federal financial assistance to establish and maintain internal control over federal programs in order to provide reasonable assurance that the entity is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards that could have a material effect on its federal programs. Condition and Context During testing for reporting, the City was unable to provide documentation to support approvals over the preparation and submission of the first three quarterly reports (P&E Report) of fiscal year 2023. Cause The City did not maintain evidence of the approvals support approvals over the preparation and submission of the first three quarterly reports. Effect or Potential Effect Failure to implement effective internal controls over reporting before submission could result in the submission of a report that contains errors. Without documented evidence of the approval the review cannot be corroborated. Questioned Costs None. Recommendation We recommend the City maintain evidence of the approvals in a centralized and secure location on a go forward basis. Views of Responsible Officials and Planned Corrective Action See corrective action plan.