Finding Text
Federal Program Information:
Funding Agency: Department of the Treasury
Title: Coronavirus State and Local Fiscal Recovery Fund Program
Assistance Listing Number: 21.027
Compliance Requirement: Allowable Activities/Allowable Costs
Award Year: July 1, 2021 to June 30, 2022
Condition: During our audit, we noted that the following circumstances in our testwork over disbursements
for the Coronavirus State and Local Fiscal Recovery Fund program:
During our examination of disbursements, there were three transactions totaling $18,287 that the
City had no supporting documentation to substantiate that the transactions had gone through the
proper internal controls of the City and were allowable activities and were for allowable costs.
During our examination of disbursements, there were three transactions for $12,958 where the City
did not go through the City’s internal control process for disbursements of having purchase
requisitions created and approved prior to the creation of approved purchase orders. These
transactions went through a direct pay voucher without having the proper approvals, which is not in
compliance with the City’s approved policies and procedures over disbursements.
Criteria: The City must establish internal controls over compliance with allowable activities, allowable costs
(2 CFR 200.303).
Effect: The City did not follow its properly designed internal control system to ensure expenditures complied
with the allowable activities/allowable costs requirements for the Coronavirus State and Local Fiscal
Recovery Fund program.
Questioned Costs: $18,287
Cause: The City did not follow its system of internal control for some of its purchases and there were some
transactions that the City could not locate because they were not properly filed.
Auditors’ Recommendation: We recommend that the City ensure that it follows its internal controls for all
transactions to ensure proper review of all costs associated with the Coronavirus State and Local Fiscal
Recovery Fund expenditures.
Agency’s Response: The Finance Department will immediately implement processes and procedures for grant
requirements to ensure:
Staff follow processes and procedures
Implement controls for expending the funds
Retain proper documentation for processing reimbursements
Maintain those documents for future audit
The responsible party for this finding is the finance director.