Finding 968040 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-04-01
Audit: 302059
Organization: City of La Verne (CA)

AI Summary

  • Core Issue: The City failed to submit the annual project and expenditure report on time due to technical issues accessing the Department of Treasury system.
  • Impacted Requirements: This delay puts the City out of compliance with the reporting requirements of the State and Local Fiscal Recovery Funds program.
  • Recommended Follow-Up: The City should resolve technical issues promptly and maintain updated contacts to ensure timely submissions in the future.

Finding Text

Criteria: Per the State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, Project and Expenditure Reports (P&E Reports) required by the program include providing cumulative obligations and expenditures. Internal controls over reporting compliance should ensure accurate, complete, and timely submission of all required reports. Condition: The City did not submit the annual project and expenditure report timely. Cause: The City experienced technical issues in accessing the Department of Treasury system to submit the required report. The City contacted the Department of Treasury regarding the issue but it was not resolved prior to the due date of the report. Effect: The City is not in compliance with the reporting requirement of the grant Recommendation: The City should address those technical issues early to ensure the report is submitted timely. Management’s Response: Regarding the failure to file the required report timely for the Coronavirus State And Local Fiscal Recovery Funds, the City acknowledges the compliance issue and its potential impact on our obligations under the federal award program. The City has rectified the issue by ensuring that current employees are listed as contacts. When the lack of access was discovered, the City made efforts to seek assistance, including sending emails to three separate contact addresses before receiving a response roughly 6 weeks later. No phone numbers were available, and email was the only form of contact. To prevent similar occurrences, the City will take proactive measures to address technical issues that may impede timely submissions. Additionally, we will update contacts within the necessary agency promptly when staffing changes occur and work closely with relevant federal agencies to resolve technical issues and ensure compliance with reporting requirements.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 391598 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
95.001 High Intensity Drug Trafficking Areas Program $5.93M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.46M
16.922 Equitable Sharing Program $1.30M
21.016 Equitable Sharing $149,545
97.067 Homeland Security Grant Program $86,634
14.218 Community Development Block Grants/entitlement Grants $21,653