Finding 620896 (2022-006)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-10-01
Audit: 47633
Organization: City of Sheboygan (WI)

AI Summary

  • Core Issue: The City overstated expenditures in quarterly reports by reporting $9,550,000 instead of the actual $7,689,637 spent on a Water Utility project.
  • Impacted Requirements: This violates the U.S. Department of the Treasury's requirement for accurate reporting of expenditures for SLFRF funding.
  • Recommended Follow-Up: The City should collaborate with the Water Utility to accurately determine and report actual expenditures for future quarterly submissions.

Finding Text

Criteria: The U.S. Department of the Treasury requires quarterly submission of Project and Expenditure Reports for Metropolitan cities with a population below 250,000 residents that are allocated more than $10 million in SLFRF funding. These quarterly reports should report expenditures for costs incurred during that reporting period. Condition: The City reported $9,550,000 as expenditures for an infrastructure project in the Water Utility when only $7,689,637 was actually spent on the project during 2022. Cause: The City used the amount that was disbursed to the Water Utility as the expenditure, not the amount the Water Utility spent in 2022. Effect: The City overstated project expenditures in the quarterly submission of Project and Expenditure Reports during for 2022. Questioned Costs: Unknown Recommendation: We recommend that the City work with the Water Utility to determine and report actual expenditures incurred for the project for each quarterly submission.

Categories

Reporting

Other Findings in this Audit

  • 44454 2022-006
    Significant Deficiency
  • 44455 2022-007
    Significant Deficiency
  • 620897 2022-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $7.69M
66.468 Capitalization Grants for Drinking Water State Revolving Funds $4.06M
14.248 Community Development Block Grants_section 108 Loan Guarantees $3.20M
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $2.21M
20.507 Federal Transit_formula Grants $727,233
14.218 Community Development Block Grants/entitlement Grants $522,265
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $22,948
16.710 Public Safety Partnership and Community Policing Grants $20,034
20.600 State and Community Highway Safety $14,918