Finding Text
U.S. Department of Treasury Federal Program Name: Emergency Rental Assistance Assistance Listing Number 21.023 Reporting Non-Material Non-Compliance Finding 2022-002 Criteria: Per Section 200.303 of the Uniform Grant Guidance, a 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. Condition: While the City had a review process in place there were multiple issues noted that were not discovered in their review process timely. The City did not retain one of the their quarterly reports submitted and while a confirmation showed the report was filed timely and reviewed by management, the report showing the details submitted were not accessible from the Treasury website or retained by the City and, therefore, not able to be reviewed. The City did not report one of their subrecipients under the program as a subrecipient in their reporting to the Treasury. The City also did not retain evidence to support and reconcile the amount of obligations for each quarter reported to the Treasury to their underlying records. Effect: We could not determine if the City was in compliance with certain elements of their reporting. Cause: The City did not save all reports submitted through the Treasury website, along with all supporting documentation for the obligations reported within the report. The City was further unaware of the requirement to report subrecipients to the Treasury. Recommendation: We recommend the City save a copy of all reports, along with evidence of all supporting documentation to the City's records. Additionally, we recommend the City review all grant agreements to ensure all applicable reporting requirements are being followed on a timely basis. Views of responsible officials: Management agrees with the finding and is implementing procedures to correct this, which is further discussed in the corrective action plan.