Finding Text
Federal Program: American Rescue Plan Act. Federal Emergency Management Agency. Assistance Listing Numbers 21.027 and 97.036. Criteria: Per the Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200.507(c)(1) states the audit must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition: The City was subject to a single audit as more than $750,000 of federal funds were expended during the fiscal year. As of the date of the issuance of the financial statements, the single audit has not been completed and therefore not submitted to the federal clearinghouse or other relevant granting agencies. Cause: Due to delay of financial reporting and issuance of the June 30, 2022, financial statements, the City fell out of compliance with the requirements noted above. Effect: The City has put their federal funding status at risk for the delays in reporting. Questioned Cost: None. Recommendation: We recommend the City implemented internal controls to perform a timely closing of the audit, which would include the preparation of the schedule of expenditures of federal awards. This would allow for the timely submission of required report to the federal government. Management’s Response: See corrective action plan.