Finding Text
Assistance Listing, Federal Agency, and Program Name - 21.027, U.S. Department of the Treasury, COVID-19 Coronavirus State and Local Fiscal Recovery Funds
Federal Award Identification Number and Year - 2023; 20-HA4-XC-03002, SLFRP0126
Pass-through Entity - Colorado Department of Transportation; Colorado Department of Local Affairs
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 2 CFR 200.303(a), a non-federal entity mus Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - There was no evidence that reports were reviewed for completeness and accuracy prior to submission.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - N/A
Context - During reporting testing, of the 3 reports selected for testing, we noted that none of them showed evidence of review for completeness and accuracy prior to submission.
Cause and Effect - The City did not have controls in place around reviews of reporting. As a result, reports were not reviewed prior to submission.
Recommendation - We recommend the City implement controls to ensure a review of all reports are performed by someone other than the preparer, prior to submission.
Views of Responsible Officials and Planned Corrective Actions - The City hired a full-time Grants Manager in February 2024 to establish procedures to track grants that are awarded and expended by the City. New procedures will be developed to ensure that financial and performance reports for grants will be reviewed and approved by the Grants Manager prior to submission of the reports to the awarding entities. Documentation of this review will be retained with the grant documents.