Finding 971406 (2022-007)

Federal Program COVID-19 - American Rescue Plan - State and Local Fiscal Recovery Funds - 21.027 Criteria The City is required to submit project and expenditure reports quarterly to the Department of Treasury. Condition The reports filed by the City were unable to be tested as the backup was not available to verify the key line items noted in the Compliance Supplement. Cause The Director of Finance filed the reports as required with the assistance of a third-party consultant. When the reports were filed, no backup was maintained to support the reports. Effect Without the backup for the reports filed, the City was unable to support and verify key line items as required by the Compliance Supplement. Questioned Costs None. Context The City is required to submit project and expenditure reports to the Department of Treasury through their portal quarterly. Our testing noted that the reports were submitted in a timely fashion. The Director of Finance indicated that the reports are filed based on a general ledger report run at the time the report is completed. There was no backup or evidence maintained to support the reports that were run for the report filings. The lack of audit evidence did not allow us to complete the required testing. Repeat Finding No. Recommendation We recommend the City update its report filing procedures to include the saving or printing of backup documentation to support the amount reported. The report should also be reviewed by a separate individual than the one compiling the information. Management Response See corrective action plan included in this.