Finding Text
Finding 2023-003; Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing no. 21.027
Reporting
Criteria: The U.S. Department of Treasury requires the City to submit quarterly reports, which include, among other items, cumulative amounts expended and obligated.
Condition: The amounts reported to Treasury through June 30, 2023, did not agree to the City’s Schedule of Expenditures of Federal Awards (SEFA) or to the underlying amounts supporting the City’s SEFA.
Cause: Procedures had not been fully established to ensure accurate quarterly reporting occurred.
Effect: Inaccurate reporting may be occurring on the City’s required quarterly reports.
Questioned Costs: None
Context: The City’s total federal expenditures on the SEFA for the year ended June 30, 2023 were approximately $3.2 million. Amounts reported by the City to Treasury through June 30, 2023 totaled approximately $2.5 million.
Recommendation: We recommend that the City review its procedures to ensure that accurate quarterly reporting occurs.
Views of Responsible Officials and Planned Corrective Actions: Reporting of the quarterly ARPA submissions is based on recorded transactions as of the due date of the quarterly report. The finance software posts invoices based on the invoice date rather than posting when the invoice is paid. Upon reconciliation of the difference noted above, it was discovered that invoices that were dated as of a particular quarter were paid and recorded well after the due date of the quarterly ARPA submission so could not be included in the quarterly report.
Moving forward, we will reconcile to reflect only what is actually paid in time to be included in the ARPA submission so our internal records agree to the submission. We will not report to ARPA any funds that have not been expended because circumstances such as pricing, abandonment of a project, etc. can change before payment and if these items are reported before paid, it would cause erroneous reporting of ARPA funds.