Finding Text
Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Financial Assistance Listing Number: 21.027 Federal Agency: U.S. Department of Treasury Award Year: 2021/22 Grant Number: N/A Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control Criteria: 2 CFR Section 200.303(a), Internal Controls, states that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The City must submit an annual Project and Expenditure Report for this program. Condition: While the City prepared and had adequate supporting documentation for the Project and Expenditure Report, there was no documented evidence of review or approval prior to submission. Cause: The City prepared the Project and Expenditure Report and submitted without retaining evidence that the report was reviewed and approved by a separate individual prior to submission. Effect: Documentation was not available to support the review of the report prior to submission. Questioned Costs: None Context/Sampling: The entire population of one Project and Expenditure Report submitted during the year was selected for testing. Repeat Finding from Prior Year: No Recommendation: We recommend the City enhance internal controls to ensure supporting documentation, including evidence of review, is retained for the Project and Expenditure Report. Views of Responsible Official: Management agrees. See separately issued Corrective Action Plan.