Finding 46423 (2022-002)

Criteria: The U.S. Department of Treasury established reporting requirements for local governments. These requirements established methods for reporting Emergency Rental Assistance (ERA) expenditures to the U.S. Department of Treasury. Condition: We performed tests to determine if the City was in compliance with reporting requirements for the federal program. The City is required to make both quarterly and monthly reporting related to the program. Context: The following instances of noncompliance were noted during our testing of the ERA program reporting: - 1 out of 4 quarterly reports tested reported cumulative expenditures reported that did not agree to City records. - 3 out of 4 quarterly reports tested reported current quarter obligations that did not agree to City records. - 1 out of 4 quarterly reports tested reported current quarter expenditures that did not agree to City records. - 3 out of 4 monthly reports tested were not filed timely. - 3 out of 4 monthly reports tested reported number of unique households that did not agree to City records. - 3 out of 4 monthly reports tested reported total expenditure amounts that did not agree to City records. Cause: Lack of sufficient internal controls over the reporting requirements of the ERA program. Effect: The City was not in compliance with reporting requirements in 2022. Recommendation: We recommend the City enhance its internal controls over the reporting requirements of the ERA program by reviewing the U.S. Department of Treasury?s federal guidance for reporting.