Finding Text
Program: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number
21.027, U.S. Department of Treasury, Direct Program
Criteria: Per the State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, metropolitan cities with a population below 250,000 that are allocated more than $10 million in State and Local Fiscal Recovery Funds are required to submit Performance and Expenditure Reports (P&E Reports) quarterly. Internal controls over reporting compliance should ensure accurate, complete, and timely submission of all required reports. Condition: Management that tracked and submitted the P&E Reports left the City in August 2022, and new management was not aware of the requirement nor received correspondence from the U.S. Department of Treasury (Treasury). Effect: The City did not submit any of the required quarterly P&E Reports to the Treasury for the period that covered July 1, 2022 through June 30, 2023. Questioned Costs: None. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City update policies and procedures for grant reporting and administration such as keeping a listing of grant reporting requirements in their records.
Management’s Response: The City agrees that the absence of a structured data collection and analysis process sufficient to fulfill reporting requirements creates a risk of noncompliance with federal statutes, regulations, and terms and conditions of the grant awards. The City will develop, document, and implement a formal year-end closing process and audit preparedness policy and procedures. The responsibilities, deliverables, and deadlines will be clearly outlined
and communicated to all staff members. The City remedied the delinquent ARPA SLFRF quarterly P&E Report to the Treasury in January 2024, covering July 1, 2022, through December 31, 2023. Management intends to fully expend the remaining ARPA SLFRF award in FY24 and file the required quarterly P&E Reports in April 2024 and the final report in July 2024.