Finding 574140 (2024-002)

2024-002 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing #21.027 – Reporting Condition The auditee submitted one or more required quarterly Project and Expenditure Reports to the U.S. Department of the Treasury after the established submission deadlines. For example, the report for the quarter ending December 31, 2024, was submitted on February 11, 2025, which was 11 days past the deadline of January 31, 2025. Criteria According to the U.S. Department of the Treasury’s Compliance and Reporting Guidance for State and Local Fiscal Recovery Funds (most recently updated April 29, 2025), recipients are required to submit quarterly Project and Expenditure Reports no later than 30 days after the end of each calendar quarter. Timely submission is required to maintain compliance with federal grant reporting requirements under 2 CFR §200.328(b)(1), which states that recipients must submit performance reports by the required due dates. Cause The delay in submitting the reports was primarily due to confusion on how to report obligated amounts in the Project and Expenditure Report. Specifically uncertain about how to report obligations in accordance with Treasury guidance, which delayed the completion and submission of the report. Effect Late submission of required federal reports may result in noncompliance with grant terms and conditions, increased scrutiny from the granting agency, and potential impacts on future funding. Furthermore, untimely reporting can hinder transparency and federal oversight of how SLFRF funds are being used. Questioned Costs None Recommendation We recommend that management implement stronger internal controls to ensure timely preparation and submission of all required federal reports. This may include designating a responsible official for compliance tracking, developing a calendar of reporting deadlines with automated reminders, and performing periodic reviews to ensure submission timelines are met. Management should also ensure that staff responsible for federal reporting are adequately trained on applicable requirements and deadlines. View of Responsible Official The Town will establish policies and procedures to comply with SLFRF reporting and guidelines to ensure timely and accurate reporting.