Finding 519509 (2024-002)

Project and Expenditure Report Criteria – The Uniform Guidance, Part 200.303, requires the auditee establish and maintain effective internal control over the federal award which provides reasonable assurance the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms of the federal award. The City is required to submit an annual project and expenditures report. The Compliance and Reporting Guidance, State and Local Fiscal Recovery Funds, requires the annual report be submitted to the U.S. Treasury by April 30, each year. Condition – The required report was submitted timely however there was no evidence of independent review of the report. Cause – City procedures have not been established to ensure the report is independently reviewed. Effect – The lack of established policies and procedures for independent review could result in inaccurate information in the required report. Recommendation – The City should establish policies and procedures to ensure reports are independently reviewed in accordance with the Compliance and Reporting Guidance. Independent review of the annual report should be documented by the signature or initials of the reviewer and the date of the review. Response and Corrective Action Planned – A policy and procedure will be established to ensure the City documents independent review on future reports. Conclusion – Response accepted.