Major Federal Award Programs Audit
Material Weakness #2023-006
Condition and criteria: The City is required to file an annual report for the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program. As part of the reporting process, the City designates the portion allocable to revenue replacement to allow for the amount of expenditures that can be claimed as the broad general government services category. In addition, the City reports the amount of funds that were obligated and the amount that was actually expended. All the funds were obligated, but a significant amount had not been expended at the time of the report and the City reported the funds as fully expended. The reporting discussed tranche two funds received in some of the narratives but not in the obligations or revenue loss sections, which should be included in the reports.
Cause: There were several changes in staff during the year and the staff that filed the March 2023 report was new to the process. Staff relied on the prior year’s reporting, which also did not meet regulatory requirements. The grant has a wide latitude on allowable costs and management changed their decision on costs charged to the grant causing further difficulties in reporting.
Auditor’s recommendation: We recommend that the City only report funds actually incurred as expenditures in future reports, and we recommend additional training for staff reporting under this grant. We also recommend that the City review the intended spending of the remaining funds and to have an updated spending plan approved by Council.
Management’s Plan of Action
Management concurs with the auditor’s recommendations and future CSLFRF reports will be based on the amounts actually expended. The City has committed all the remaining funds as required by the ARPA deadlines.
Anticipated Completion Date: December 31, 2024
Name and Title of Responsible Person: Jeanie Dexter, Finance Director
Prepared by: Jeanie Dexter, Finance Director
Dated 2/20/25