Finding 521105 (2024-004)

Program: Coronavirus State and Local Fiscal Recovery Funds Federal Financial Assistance Listing No.: 21.027 Federal Agency: U.S. Department of Treasury Passed-through: California Department of Finance Award Number and Year: CSLFRF Compliance Requirement: Reporting Type of Finding: Material Weakness in Internal Control over Compliance, Instance of Noncompliance Criteria: 2 CFR 200.303(a) requires that the non-federal entity must 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. Condition: We noted that the supporting documentation provided did not tie to the annual report submitted by the City or evidence of review. Cause: The City’s internal control environment was impacted by a shortage of staff necessary to fully conduct the program. Effect: The City’s reports on the awards were not reviewed for accuracy. Questioned Costs: None reported. Context/Sampling: We selected 100% of the City’s reports for the program. Repeat Finding from Prior Year(s): No. Recommendation: We recommend that the City continue to strengthen its policies and procedures over reporting to ensure that that the supporting documentation and evidence of review is maintained. Views of Responsible Officials: Management agrees with the finding. See separate corrective action plan.