Finding Text
Federal Program COVID-19 State and Local Fiscal Recovery Funds, Assistance Listing No. 21.027 Criteria Per the Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance (as approved and documented under OMB PRA number ? OMB # 1505-0271), quarterly Project and Expenditure Reports are due to Treasury by the last day of the month following the end of the period covered, and the funds may be used to cover eligible costs incurred between March 3, 2021 and December 31, 2024. Condition During the audit, we noted one Project and Expenditure report was submitted after the required deadline and the reports were including expenditures outside the required period of performance. Cause The City did not have effective controls in place to file the reports timely and determine period of performance requirements. Effect The City could jeopardize future grant funding due to program noncompliance. Questioned Costs No questioned costs. Context/Sampling The entire population of 3 Project and Expenditure reports was selected for testing. Upon review of the expenditure details for the program, we noted 407 transactions out of a population of 588 were for costs incurred prior to the period of performance. The total value of these expenditures was $222,367 out of $912,715 originally allocated. Identification as a Repeat Finding This is not a repeat finding. Recommendation We recommend the City establish a system to track required reports and their deadlines and evaluate its agreements to effectively determine period of performance requirements. Views of Responsible Officials See attached Corrective Action Plan.