Finding Text
2021-006 Reporting Noncompliance
Federal Program: 21.019 – COVID-19 - Coronavirus Relief Fund
Federal Agency: U.S. Department of the Treasury
Award Number: PON211221000000422 and PON21122100001304
Questioned Costs: $0
Criteria: Single audit reporting packages must have a report date nine months after the fiscal year-end.
Due to COVID-19 this was extended by an additional six months (2 CFR Part 200 Subpart F).
Condition: The audit was not completed by the extended deadline.
Cause: Staffing difficulties, the COVID-19 pandemic, and the lack of controls in place to ensure complete
and accurate information could be provided timely delayed the single audit reporting package. Effect: The City was not in compliance with federal regulations and guidelines for the single audit
submission.
Recommendation: The City should implement controls for filing federal financial reports in a timely
manner.
Management’s Response and Planned Corrective Action: In the past few years, the city has experienced
turnover in management from the City Clerk, Finance Director, and the HR Director along with being
significantly understaffed. With the stabilization of appropriate staffing levels along with appropriate
procedures, and clear job duties this should no longer be an issue. The Mayor and City clerk have sent
out instructions to all department heads that the documentation for all grants must be sent to the Admin
Department.