Finding Text
Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds
Federal Catalog Number: 21.027
Federal Agency: U.S. Department of Treasury
Category of Finding: Reporting
Criteria: Pursuant to the Office of Management and Budget (OMB) 2 CFR Part 200, Appendix XI,
Compliance Supplement May 2024 Part 4 21.027 Coronavirus State and Local Fiscal Recovery Funds
(page 4-21.027-7), the annual reporting requirement for Coronavirus State and Local Fiscal Recovery
Funds (CSLFRF) is through the submission of the initial Interim Report, quarterly Project and Expenditure
Report, and the Recovery Plan Performance Report. The interim report is a one-time report that provides
an initial overview of status and use of funding. The Project and Expenditure Report details the financial
data, projects funded, expenditures and contracts over $50,000. The Recovery Plan Performance report
is not a required report for the City due to their population size falling under the 250,000 requirement.
Condition: During our audit, the City was unable to provide evidence that the project and expenditure
report for quarter April through June 2024 was submitted.
Cause: Lack of appropriate control over reporting, mainly due to turn-over in City personnel.
Effect or Potential Effect: Noncompliance may result in termination of the grants, reduction in future
payments or funding amounts, repayment of federal funds already received and spent, imposed fines
and penalties, reputational damage, special status for oversight and reviews, need for corrective action
plan, and/or suspension or debarment.
Questioned Cost: None.
Context: According to City's consultant, the report was drafted but not submitted.
Statistical Sampling Validity: Not applicable. No sampling was performed.
Repeat of a Prior-Year Finding: Yes, 2023-002, 2022-001, and 2021-003
Recommendation: The City should design and establish internal controls over reporting, which should
include maintaining copies of reports submitted for audit.
Management Response and Corrective Action Plan
The City concurs with the recommendation.
Corrective Action Plan: City is onboarding qualified individuals to ensure reports are submitted
in a timely manner and retained by the City.
Planned Implementation Date: Implemented during Quarter 1 of Fiscal Year 2025