Finding Text
Federal Program, Assistance Listing # and Year, Federal Agency, Pass-Through Entity:
COVID-19 - Coronavirus State & Local Fiscal Recovery Fund, Assistance Listing #21.027, 2021, U.S.
Department of Treasury.
Criteria or Specific Requirement: In accordance with 2 CFR 200.1, all recipients of federal funds must
complete and submit annual project and expenditure reports on all SLFRF funded projects. Also, 2 CFR
200.303 requires the entity to establish and maintain effective internal controls over compliance with respect
to federal awards and Section 1111(b)(2)(A) of the ESEA for compliance accountability. Proper internal
controls require supporting documentation to be retained as evidence for effectiveness of the controls in
place. In accordance with 2 CFR.307, program income earned during the period of performance must be
used in accordance with the terms and conditions of the federal award.
Condition: During our testing, CRI identified a lack of internal controls related to reviewing and approving
report submissions. During our testing, CRI identified 2024 report submissions did not agree to cumulativeto-
date expenditures of the fiscal years 2021-2024. During our testing, CRI identified revenue
recognized/earned during the period was improperly reported as program income and expenditures were
improperly included as program income expenditures, causing inaccurate reporting. Program income was
materially overstated.
Effect: The City of Shreveport risks reports required to be submitted to the U.S. Department of the Treasury
to be materially misstated.
Cause: A lack of adequate controls over reporting requirements.
Questioned Costs: Not applicable
Context: The issue was identified while testing the population of reports.
Recommendation: We recommend the City implements proper controls to review reports submitted, so as
to identify and address any discrepancies.
Views of responsible officials and corrective action plan: Accounting has reviewed all projects and
Ordinances related to ARPA and has updated reports and records to fully account for ARPA funding. From
the Chief Administrative Officer (CAO) and the department responsible for a specific project that has multiple
funding sources, confirmation was obtained on what amounts were obligated ARPA funds. This strengthens
the controls over the report submission process to ensure the reported amounts are accurate and reconciled
properly.