Finding 517103 (2024-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2024-12-30

AI Summary

  • Core Issue: The City submitted the Annual Project and Expenditure Report late, in September 2024, instead of by the April 30 deadline.
  • Impacted Requirements: The report lacked accurate current period expenditures, reporting only total revenue replacement funds instead of required line items.
  • Recommended Follow-Up: The City should update its policies to ensure timely and accurate report submissions moving forward.

Finding Text

2024-001. Reporting AL#: 21.027 COVID-19 State and Local Fiscal Recovery Program Award Year: 2022 Criteria: Under the requirements of the Compliance and Reporting Guidance for State and Local Fiscal Recovery Funds outlined by the Department of the Treasury, recipients of grants are required to submit a project and expenditure report either on a quarterly or annual basis during the period of performance of the award, depending on what tier the recipient qualifies under. In this instance, the City falls under Tier Five which requires an annual report. The Annual Project and Expenditure Report must be submitted by April 30th for the annual period ending in March. The report must contain all critical information line items, including current period obligations, cumulative obligations, current period expenditures, and cumulative expenditures. Condition: The Annual Project and Expenditure Report was due no later than April 30, 2024, for the annual period ending March 2024. This report was ultimately submitted by the City in September of 2024. Furthermore, the City failed to report actual current period expenditures and instead reported total revenue replacement funds the City plans to expend through the period of performance of the award in all key line items. Context: We addressed the matter with City management who are aware of the reporting requirements. Effect: Failure to properly review and adhere to policies and procedures related to reporting can lead to noncompliance as well as the withholding of future awards and funds drawdowns by the awarding agency. Cause: Management oversight. Recommendation: We recommend the City review and update its policies and procedures to ensure all required reports are prepared, reviewed, and submitted within the program’s required timeframes, and with the correct amounts. Views of Responsible Officials: We concur. The City is in the process of reviewing their respective systems to evaluate and determine the most efficient and effective solution to ensure all required reports are prepared, reviewed, and submitted within the COVID-19 State and Local Fiscal Recovery program’s required timeframes, and with the correct amounts.

Corrective Action Plan

We will review the respective requirements to evaluate and determine the most efficient and effective solution to ensure all required reports are prepared, reviewed, and submitted within the COVID-19 State and Local Fiscal Recovery program’s required timeframes, and with the correct amounts.

Categories

Cash Management Period of Performance Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1093545 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $4.31M
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.76M
20.507 Federal Transit Formula Grants $1.78M
14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $242,264
45.309 Museum Grants for African American History and Culture $38,140
16.607 Bulletproof Vest Partnership Program $11,138
20.600 State and Community Highway Safety $2,801