Finding 964972 (2023-005)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-29
Audit: 300234
Organization: City of Jackson, Tennessee (TN)

AI Summary

  • Core Issue: The City failed to include expenditures made without purchase orders in quarterly reports for the Coronavirus State and Local Fiscal Recovery Funds.
  • Impacted Requirements: Internal controls for timely and accurate reporting were inadequate, leading to incomplete financial disclosures.
  • Recommended Follow-Up: Implement quarterly reconciliations of project & expenditure reports with the ARPA Fund to ensure all expenditures are accurately reported.

Finding Text

Reporting Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing No. 21.027) Criteria: Internal controls should be in place to ensure the reporting requirements of the grant are timely and accurately completed. Condition: The City is required to complete quarterly project & expenditure reporting for the Coronavirus State and Local Fiscal Recovery Funds (“CLSFRF”). These reports are to include the current period’s obligations and expenditures. Context/Cause: During the tesing of the current year reports, it was noted the City’s process for identyfing the current period’s obligations and expenditures did not include procedures to identify any expenditures which were made without purchase orders. As such, there payments made to local beneficiary non-profits which did not include a purchase order, and therefore we not included in the reports. Effects: In accordance with the guidance from US Treasury on report corrections, any errors in the reporting period that is closed are to be made in a future reporting quarter. As such, the error on the reporting in the year ended June 30, 2023, will be corrected in subusequent reporting periods. Recommendation: We recommend the City ensure the project & expenditure reports are reconciled each quarter to the expenditures reported in the City’s ARPA Fund to ensure the accuracy and completeness of the reporting required by the grant. Auditee’s Response: We will ensure future reports include all previously omitted expenditures and work to implement controls sufficient to reconcile the programatic reporting to the general ledger on a quarterly basis.

Categories

Procurement, Suspension & Debarment Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 388530 2023-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.17M
14.218 Community Development Block Grants/entitlement Grants $549,259
14.239 Home Investment Partnerships Program $299,684
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $141,273
16.588 Violence Against Women Formula Grants $94,420
16.575 Crime Victim Assistance $56,426
20.205 Highway Planning and Construction $55,737
16.738 Edward Byrne Memorial Justice Assistance Grant Program $42,973
21.016 Equitable Sharing $11,640