Finding Text
Federal Agency: U.S. Department of Commerce Federal Program/Cluster Title: Economic Development Cluster Assistance Listing Number: 11.307 Award Period: January 1, 2022 through December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Condition: Reports submitted by the City to the granting agency were not submitted timely. Criteria or Specific Requirement: Reports submitted to granting agencies must be complete, accurate, and submitted in a timely manner. Context: We noted that 3 of the 11 reports tested were not submitted by the City to the granting agency by the required due date. Effect: The City did not comply with the compliance requirements for reporting set forth in the Uniform Guidance, resulting in required reports not being submitted timely. Cause: Management informed us staff turnover lead to required reports not being submitted timely. Recommendation: To ensure timely reporting, we recommend strengthening of internal control by training multiple staff how to complete reporting required by the Uniform Guidance. Views of Responsible Officials: The City's economic development staff, who are responsible for managing this federal grant program, experienced complete turnover during 2021 and 2022. The employees who had been completing the grant reporting are no longer with the City, and the newly-hired employees were new to the process. Staff has worked with the U.S. Department of Commerce on correcting the grant reporting deficiencies, which will be corrected in the 2023 fiscal year.