Finding Text
Condition
During the fiscal year the Municipality used Coronavirus State and Local Fiscal Recovery
Funds in unallowable activities. The funds were used to finance certain activities of the
General Fund and other federal programs. The General Fund and the other programs due
$473,186 to the Coronavirus State and Local Fiscal Recovery Funds as of June 30, 2023.
Criteria
42 USC 802, Coronavirus State fiscal recovery fund, (c) (4), establish the use of funds
provided shall only use under a payment made to cover costs incurred to respond to the
public health emergency with respect to the Coronavirus Disease 2019 (COVID-19) or its
negative economic impacts.
Effect
The program does not have available the federal funds to use in the allowable activities.
Cause
The internal control procedures relative to identification of allowable costs incurred as
June 30, 2023 for this award did not operate effectively.
Questioned Costs
$473,186.
Recommendation
The federal funds used should be reimbursed as soon as possible in order to correct the
situation and to have available the federal funds to use on specific activities allowed.