Finding Text
2023‐003: U.S. Department of the Treasury
COVID‐19: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027
Reporting
Significant Deficiency in Internal Control over Compliance
Grant Award Number: Affects all grant awards included under Assistance Listing 21.027 on the
Schedule of Expenditures of Federal Awards.
Criteria: The OMB Compliance Supplement requires that reports submitted to the federal awarding
agency include all activity of the reporting period, are supported by applicable accounting
or performance records, and are fairly presented in accordance with governing
requirements.
The City of Sparks (the City) must submit quarterly Project and Expenditure Reports
that contain costs incurred during the covered period. Critical information includes, in
part:
o Obligations and Expenditures
§ Current period obligation
§ Cumulative obligation
§ Current period expenditure
§ Cumulative expenditure
Condition: Current obligation information was not reported in accordance with governing
requirements.
Cause: The City of Sparks did not have adequate internal controls to ensure Project and
Expenditure Reports were prepared in accordance with governing requirements.
Effect: Inaccurate information was reported to the federal awarding agency.
Questioned Costs: None
Context/Sampling: A nonstatistical sample of two out of a population of four Project and
Expenditure Reports submitted during the year was selected for testing. The City reported
current obligations for the amount the City recognized as a payable, rather than the
obligations (i.e., contracts) that were entered into during the reporting period.
The impact is as follows:
Period Ended December 31, 2022
ShotSpotter:
Current Period Obligation -Originally Reported- $290,000; Actual-$850,000
Wastewater Surveillance:
Current Period Obligation -Originally Reported-$102,098; Actual- $‐
Period Ended March 31, 2023
ShotSpotter:
Current Period Obligation-Originally Reported- $290,000; Actual- $‐
Wastewater Surveillance:
Current Period Obligation-Originally Reported- $223,149; Actual- $‐
Prior Year: Yes – repeat finding 2022‐003.
Recommendation: We recommend the City enhance internal controls to ensure Project and
Expenditure Reports are prepared in accordance with governing requirements.
Views of Responsible
Officials: The City of Sparks agrees with this finding.