Finding Text
Criteria: The US Department of Treasury requires metropolitan cities with fewer than 250,000 residents and allocation of less than $10 million in Coronavirus State and Local Recovery Funds (SLFRF) to annually submit Form 4850 Project and Expenditure Report. The Project and Expenditure Report reports on financial data, projects funded, expenditures, and contracts and subawards over $50,000, and other information. For each project reported on the Project and Expenditure, a project expenditure category is selected. Condition: Of the two Project and Expenditure Report tested, we noted that for every project, the project expenditure category of Revenue Replacement was selected. Projects included on the reports included subawards to subrecipients. Per Final Rule FAQ 13.14, ?Treasury is not collecting subaward data for projects categorized under Expenditure Category Group 6 ?Revenue Replacement.? Treasury has determined that there are no subawards under this eligible use category. The definition of subrecipient in the Uniform Guidance provides that a subaward is provided for the purpose of ?carrying out? a portion of a federal award. Recipients? use of revenue loss funds does not give rise to subrecipient relationships given that there is no federal program or purpose to carry out in the case of the revenue loss portion of the award.? Cause: No policies and procedures are in place for the preparation and review of interim, quarterly, and annual reports. Effect: The City?s annual Project and Expenditure Reports did not report accurate information regarding the program expenditure categories for the periods March 3, 2021 through March 31, 2022 and April 1, 2022 through March 31, 2023.