Finding Text
Assistance Listing, Federal Agency, and Program Name - ALN 21.027, U.S. Department of the Treasury, COVID 19 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF)
Federal Award Identification Number and Year - FAIN not available, 2022
Pass through Entity - N/A Direct funded
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 2 CFR 200.303(a), nonfederal entities must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the comptroller general of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - The City did not have controls in place surrounding the review of annual performance reporting.
Questioned Costs - None
If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - Not applicable
Identification of How Questioned Costs Were Computed - Not applicable
Context - As the City received less than $10 million of CSLFRF funding, the City is required to submit an annual report for the program and have controls in place to ensure the report is filed on time and no errors in reporting occur. During the review of internal controls over the annual performance report required by the program, the City was unable to produce evidence of a secondary review of the annual report before or after submission; however, the report was filed on time and no errors in reporting were noted as a result of our audit procedures.
Cause and Effect - Due to significant staff turnover at the City, the City did not have controls in place over reporting for this grant. The lack of countrols could have resulted in material misstatements to the reports filed with the funding agency.
Recommendation - In order to ensure reporting requirements are met and that reports are accurate and filed timely, we recommend the City incorporate a formal review process of the reports.
Views of Responsible Officials and Corrective Action Plan - The City agrees with this finding. The City is in the process of strengthening our formal grant review process for all reports to ensure accuracy and timeliness. See the corrective action plan.