Finding Text
Finding Reference Number: SA2022-001 Compliance with Grant Deadlines Assistance Listing Number: 21.027 Assistance Listing Title: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: Department of Treasury Federal Award Identification Number: SLFRP0002 68-0283471 68-0281986 Name of Pass-Through Entity: State of California Department of Community Services California State Water Resources Control Board Criteria: The City?s three California Arrearage Payment Program (CAPP) grants included a number of deadlines for transaction processing, reporting and return of unused funds as follows: ? Electric Utility Arrearage CAPP Program Notice No. 2022-01 requires the filing of the Close-Out Report within six months of receipt of the grant funds, or August 7, 2022. ? California Water and Wastewater Arrearage Payment Program Guidelines Section B requires that the City allocate Water Arrearage Program payments as bill credits to customer accounts within 60 days of receiving payment or March 26, 2022. ? California Water and Wastewater Arrearage Payment Program Guidelines Appendix A, Section 6.3, requires the return of unspent Wastewater Arrearage Program funds within six months of receiving payment or November 30, 2022 Condition: The City did not comply with the required reporting and other program deadlines above as follows: ? Electric Utility Arrearage Close-Out Report was not filed until August 30, 2022. ? Water Utility Arrearage Program bill credits were not applied to customer accounts until April 4, 2022. ? Wastewater unused funds were not returned to the State Water Resources Control Board until January 6, 2023. Cause: We understand that staff shortages as well as the complexities of calculating the customer credits led to the reporting, deposit, credit and payment delays. Effect: The City is not in compliance with the terms and conditions of payment related to the required reporting and other program deadlines of the California Arrearage Payment Programs. As a result, the City could have been required to return moneys to the grantors. Recommendation: Although it does not appear that the grantors disallowed any of the program costs, the City must develop procedures to ensure compliance with grant award terms and conditions of payment, including timely filing of reports, timely use of grant funds and timely return of unspent grant funds. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.