Finding Text
Federal Agency: U.S. Department of the Treasury Federal Financial Assistance Listing: 21.027 Program Name: COVID-19: Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance, Instance of Non-compliance Criteria: 2 CFR 200.329(b) requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with program requirements. The City of Rancho Mirage (the City) must submit an annual Project and Expenditure Report that contains costs incurred during the covered period. Critical information includes: ? Obligations and Expenditures o Current period obligation o Cumulative obligation o Current period expenditure o Cumulative expenditure ? Subawards ? Detailed information on any loans issued; contracts and grants awarded; transfers made to other government entities; and direct payments made by the recipient that are greater than $50,000. For amounts less than $50,000, the recipient must report in the aggregate for these same categories of loans issued; contracts and grants awarded; transfers made to other government entities and direct payments made by the recipient. Condition: Expenditure information was reported inaccurately. Cause: The City?s control did not ensure the annual Project and Expenditure Report was prepared in accordance with governing requirements. Effect: Inaccurate information was reported to the federal awarding agency. Questioned Costs: None reported. Context/Sampling: The entire population of one annual 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 Project and Expenditure Reports are prepared in accordance with program requirements. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.