Finding 479403 (2023-003)

Finding 2023-003: Significant Deficiency - Reporting Assistance Listing Number 21.027 Program Title COVID-19 - Coronavirus State and Local Fiscal Recovery Fund Federal Agency U.S. Department of Treasury Pass-Through Agency Not applicable Award Numbers / Years 2021 Criteria: The award agreement with U.S. Treasury states that the recipient agrees to comply with any reporting obligations established by Treasury as they relate to this award. Condition/Context: The Quarter 2 and 4 Project and Expenditure Reports were tested. The Quarter 4 (Q4) report had a typo that resulted in the Q4 expenditures to be understated by $1,007,000 for project 2-6-001, but the cumulative expenditures were input correctly. Additionally, project 12-6-201 was understated by $18,515 for the Q4 and cumulative expenditures due to excluding a transaction. Cause: The general ledger for the Q4 Project and Expenditure Report was not queried appropriately and a transfer was erroneously excluded. Effect: The Q4 Project and Expenditure Report was understated by $18,515 in the cumulative expenditures reported. Questioned Costs: None noted. Recommendation: When running the query for the Project and Expenditure Reports, we recommend the City ensure to include all the pertinent accounts and ensure the report is reviewed carefully for typos. Views of Responsible Officials: Compliance reports will be reviewed and approved by the Grant Administrator, Assistant Finance Director and Finance Director. Query reports are now in place to capture all accounts and ensure accuracy.