Finding 573196 (2024-002)

Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Federal Agency: U.S. Department of the Treasury Federal Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF), ALN No. 21.027 Compliance Requirement: Reporting Repeat Finding: No Condition: During our testing of two quarterly reports, we noted that management was not able to provide supporting documentation that review procedures were performed before the submission of the performance reports. Questioned Costs: None Context: For both of the reports tested, management was not able to provide the required support showing that the reports were reviewed before submission. Criteria: 2 CFR part 200 section 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Cause: There was significant turnover within the finance department of the City and grants administration was missing supervision by key personnel. Effect: The finding indicates that there could be some process improvements in how grant reports are reviewed, documented and maintained to provide evidence the compliance requirements are being met. Recommendation: We understand the grants administration has been assigned to a specific department. We recommend the agency implement procedures to ensure reports are properly reviewed as well as increase training efforts on reporting requirements if there is future staffing turnover.