Finding Text
Federal Agency: U.S. Department of Treasury
Federal Program: Coronavirus State & Local Fiscal Recovery Fund
Assistance Listing Number: 21.027
Federal Award Identification Number and Year: 1505-0271; 12/31/22
Award Period: March 3, 2021 through December 31, 2024
Type of Finding
• Significant Deficiency in Internal Control over Compliance
• Other Matter
Criteria or specific requirement: Uniform Grant Guidance (UGG) (2 CFR 200.303) requires non-federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include ensuring reports are completed accurately.
Condition: The program reporting includes classification of vendors into types, including contractors, beneficiaries, or subrecipients. A total of 12 out of 13 vendors were reported as subrecipients in the reports submitted that did not qualify as subrecipients under UGG.
Questioned costs: None
Context: In 4 of 4 reports tested, various vendors shown as subrecipients in the vendor classification section were not subrecipients, but rather beneficiaries or contractors. The sample was a statistically valid sample.
Cause: Policies in place were not followed or monitored.
Effect: Noncompliance with reporting requirements.
Repeat finding: No
Recommendation: We recommend the City strengthen its review procedures over reports to ensure all applicable data elements are accurate.
Views of responsible officials: There is no disagreement with the audit finding.