Finding Text
2022-003: Reporting - Financial and Performance Reporting Criteria - The City is required to establish and maintain an effective control environment and complete timely financial and performance reports per Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart D; Section 200.303 Internal Controls to ensure compliance with reporting requirements of the federal award. The City is required to submit a Consolidated Annual Performance and Evaluation Report (CAPER). This report is required to be submitted 90 days after the end of a grantee?s program year. Condition - The City?s Department of Community Development did not establish a control environment over the preparation and submission of the CAPER. The City did not submit the CAPER within the established timeframe required by the federal agency, resulting in noncompliance with the reporting requirements. Cause - The City did not have an established control process in place to appropriately monitor and ensure compliance with these requirements. Effect - The City is not in compliance with the federal program?s financial and performance reporting requirements. Noncompliance could have funding implications in the future. Repeat Finding - This is a repeat finding of 2021-003. Recommendation - We recommend the City?s Department of Community Development establish a control environment over the preparation of their reporting requirements, and a monitoring process to ensure reporting deadlines are met. Management Response - The City is in agreement with this audit finding. While this may be a repeat finding from 202l, the delays in filing the 2022 CAPER were a result of turnover within the department resulting in delays in filing the annual CAPER. The City has procedures in place to complete the report within the guidelines of the program and anticipates completing this report within the required time frame going forward. Estimated Completion Date - Completed