Finding Text
Information on the federal program:
Federal Agency: Department of the Treasury
Pass-Through Entity: N/A – Direct Grant
Federal Program: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF)
Assistance Listing Number: 21.027
Compliance Requirement: Reporting
Audit Findings: Significant Deficiency
Criteria: The US Department of Treasury’s Compliance and Reporting Guidance for State and Local Fiscal
Recovery Funds requires quarterly project expenditure reports to be completed with the key line items: 1)
Obligations and Expenditures 2) Subawards 3) Detailed information of any loans issued; contracts and
grants awarded; transfers made to other government entities; and direct payments made by the recipient
that are greater than $50,000. For amounts less than $50,000, the recipient must report in the aggregate
for these same categories of loans issued; contracts and grants awarded; transfers made to other
government entities; and direct payments made by the recipient.
Condition: City of Bloomington completed quarterly reporting in a timely manner substantiated by the City’s
expenditure detail. However, management could not differentiate between subrecipients and standard
vendor expenditures.
Cause: The City does not have an effective system of internal controls in place to effectively review
CSLFRF reporting data prior to submission to the US Department of Treasury.
Effect: Subrecipient expenditures and subawards on the quarterly data submissions were overstated.
Questioned costs: There are no questioned costs.
Context: During our testing procedures over CSLFRF reporting, we noted that segregation of duties is not
present in the Federal reporting process. The City was not able to accurately identify and report subrecipient
activity within CSLFRF quarterly reports.
Identification as a repeat finding, if applicable: This is not a repeat finding.
Recommendation: We recommend that the City implement a consistent multi-stage review process for
federal data reports, which involves identifying and tracking subrecipient activity as well as expenditures by
type. Views of responsible officials and planned corrective actions: Management acknowledges the
finding. See management’s corrective action plan attached to this audit report.