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 (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 that expenditures are properly reviewed and the review is documented.
Condition: While the expenditures where properly approved during the accounts payable process, our testing noted several instances in which the grant program manager did not document his approval on the expenditures.
Questioned costs: None
Context: 17 out 26 disbursements tested did not have documented approval of the grant program manager. The sample was a statistically valid sample.
Cause: Policies in place were not followed or monitored.
Effect: Lack of an adequate review process may result in unallowable costs being charged to the program.
Repeat finding: No
Recommendation: We recommend the City strengthen its review procedures over expenditures and ensure all reviews are properly documented.
Views of responsible officials: There is no disagreement with the audit finding.