Finding Text
Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds
Financial Assistance Listing Number: 21.027
Federal Agency: U.S. Department of Treasury
Award Year: 2021
Grant Award Number: N/A
Compliance Requirement: Reporting
Type of Finding: Significant Deficiency in Internal Control Over Compliance
Criteria:
In accordance with the Coronavirus State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, the City is required to submit an annual Project and Expenditure Report annually. The City is required to appropriately maintain accounting records for compiling and reporting accurate, compliance financial data, in accordance with appropriate accounting standards and principles.
Condition:
The City’s reporting requirements include submitting an annual Project and Expenditure Report. We noted no evidence of review prior to the submission of the report to the U.S. Treasury’s reporting portal.
Cause:
Management did not have established policies and procedures in place for the preparation and review of the Project and Expenditure.
Questioned Costs:
None
Effect:
The City’s internal control environment is not operating effectively.
Context/Sampling:
We noted that due to the City’s specific reporting requirements, only one (1) annual report is required to be submitted to the U.S. Treasury. As such, the entire population was tested.
Repeat Finding from the Prior Year(s):
No.
Recommendation:
We recommend the City implement formal policies and procedures for the reporting of Coronavirus State and Local Fiscal Recovery Funds. Internal controls should be established to create appropriate segregation of duties over the preparation and approval of reports to ensure the timely and accurate submission of all mandatory program reporting.
Views of Responsible Official and Planned Corrective Actions:
See separate corrective action plan.