Finding Text
2023-008 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds
Criteria: The Coronavirus State and Local Fiscal Recovery Fund (SLFRF) Grant requires an annual Project and Expenditure Report be submitted within 30 days of the year ending March 31, 2023 to the Department of the Treasury. The Project and Expenditure Report should be supported by the City’s financial records and should contain an accurate record of grant funds obligated and expended by budgeted project.
Condition: We were unable to reconcile the City’s expenditures, as reported in their accounting system, with the March 31, 2023 Project and Expenditure Report. Actual expenditures for the year ending March 31, 2023 were $1,644,557 more than were reported to the Treasury Department. Cumulative expenditures were $276,606 less than were reported to the Treasury Department.
Cause: We were unable to obtain the supporting documentation used by the City in their preparation of the Project and Expenditure Report to determine why there was such a large, undetected discrepancy. Inadequate grant management resources, staff turnover in the Finance Department, and inadequate review procedures have resulted in inaccurate reporting.
Effect: Failure to complete reports accurately and maintain proper supporting documentation for amounts reported could skew the financial position of the program and related projects. As such, measurement of results and management decisions for future projects could be based on inaccurate information.
Recommendation: We recommend the City review their grant management controls to ensure that supporting documentation for grant reporting is maintained in a shared network file, available to all relevant users, and that reports and supporting documentation are reviewed and approved by a knowledgeable grant manager prior to submission to the Department of Treasury. Subsequent reallocation of expenditures that require report corrections should be made in a timely manner in the Treasury’s reporting portal.
Known Questioned Costs: None
Likely Questioned Costs: None