Finding 580656 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2023-12-13
Audit: 6534
Organization: City of Norco (CA)

AI Summary

  • Core Issue: The annual report for March 31, 2023, incorrectly included current period obligations and expenditures for the wrong time frame.
  • Impacted Requirements: This affects the compliance requirement for accurate reporting as per the federal guidance for the Coronavirus State and Local Fiscal Recovery Funds.
  • Recommended Follow-Up: Implement a rollforward check during the annual reporting review to ensure totals align correctly with prior periods and current obligations.

Finding Text

2023 – 001 Federal agency: U.S. Department of Treasury Federal program title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listings Number: 21.027 Award Period: March 3, 2021 through December 31, 2024 Compliance Requirement Affected: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or specific requirement: In accordance with the Compliance and Reporting Guidance - State and Local Fiscal Recover Funds, current period amounts included on the annual reporting as of March 31, 2023 should cover the period from April 1, 2022 through March 31, 2023. Condition: Current period obligations and current period expenditures on the March 31, 2023, reporting covered the period from July 1, 2022, through June 30, 2023. Questioned costs: None. Context: Error was noted on 1 of 1 annual reports. Cause: Reporting period parameters between the City's fiscal year and the time period required under the grant award were confused. Effect: Incorrect current period obligations and current period expenditures were included on the March 31, 2023, annual reporting. Repeat Finding: No. Recommendation: We recommend that the City's review of the annual reporting include a rollforward check to determine that the prior period's cumulative obligation and expenditure totals, plus the current period obligations and current period expenditures agree to cumulative totals.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 4214 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.218 Community Development Block Grants/entitlement Grants $12,000
21.027 Coronavirus State and Local Fiscal Recovery Funds $10,264