Finding Text
Finding 2022-004
Reporting - Timely Submission of Financial Reports – Material Weakness in Internal
control over Financial Reporting and Material Noncompliance
Agency U.S. Department of Treasury
Program ALN: No. 21.027 Coronavirus State and Local Fiscal Recovery Funds - COVID-19
Award No. AK0137
Award Year 2022
Criteria or
Specific
Requirement
2 CFR subtitle A Chapter II part 200 subpart F section 200.512 states that “(1)
The audit must be completed and the data collection form described in
paragraph (b) of this section and reporting package described in paragraph (c)
of this section must be submitted within the earlier of 30 calendar days after
receipt of the auditor’s report(s), or nine months after the end of the audit
period. If the due date falls on a Saturday, Sunday, or Federal holiday, the
reporting package is due the next business day.”
Condition The Federal data collection form and reporting package were not filed on time.
Cause There were limited personnel resources at the City to assist in the timely
completion of the City’s audit.
Effect or potential
effect
Federal funds could potentially be expended on unallowable activities and for
unallowed costs, and outside the period of performance.
Questioned Costs None.
Context
The Form SF-SAC is due nine months after the fiscal year-end. The form for
the fiscal year ended June 30, 2022 was filed late.
Recommendation The City should prepare for its fiscal year audit before year end to ensure that
it is able to assist in the execution of the audit. Views of responsible
officials and
planned corrective
actions
Management agrees with the finding. The City recently hired a Finance Director
and is working to fill the Controller position. Being fully staffed will assist in
the timely completion of the City’s audit.