Finding 960794 (2023-003)

Criteria or specific requirement: Per the Department of the Treasury Office (the Department), state, territorial, metropolitan city, county, Tribal governments, and Non-Entitlement Units that receive funding from the State and Local Fiscal Recovery Funds Programs are required to meet compliance and reporting responsibilities. This supports transparency, responsibility, and equity in use of these vital resources. More specifically, the Department’s Corona virus State and Local fiscal Recovery Funds Compliance and Reporting Guidance, Part I, Section C.3 states that generally, recipients must submit one initial Interim Report, quarterly or annual Project and Expenditure reports which include subaward reporting, and in some cases annual Recovery Plan reports. Given the University received its SLFRF passed through the State of Colorado, the University was to follow reporting requirements passed to it by the State. Per the Grant Agreement with the State of Colorado, Section 6.A, the grantee shall submit, on a quarterly basis, a written report specifying progress made for each specified performance measure and standard in the agreement. Progress reports shall be submitted to the State no later than ten Business Days following the end of each calendar quarter or at such time as otherwise specified by the State. Condition: During testing to determine if the required quarterly were both timely and accurate/supported by the University’s books and records, we noted that quarterly reports were not being filed timely. Of the report ultimately submitted, confirmation of the submission was not maintained, and we could not test the accuracy of the submission. Context: Based upon the timing of the disbursements of the award, we estimate one report should have been submitted ten business days after June 30, 2023. This report was not submitted until the State of Colorado contacted the University for the report in October 2023. The University then submitted the information; but the report was not retained for audit/testing. Questioned costs: None. Cause: The University did not have a process in place to implement a reporting process for these new monies. Effect: The University was not in compliance with regulatory provisions as it pertains to the quarterly reporting requirement. Repeat Finding: No Recommendation: When new grants and awards are received, the University should designate ownership of compliance, including reporting requirements. Processes and controls should be implemented to ensure accurate and timely reporting occurs as required by grant requirements. In addition, reports and supporting documentation should be retained for audit and review purposes. Views of responsible officials and management’s response: The University agrees with the finding.