Finding Text
Finding Reference Number: SA2022-002 Compliance with Grant Deadlines
Assistance Listing Numbers: 21.027
Assistance Listing Title: COVID-19 – Coronavirus State and Local Fiscal Recovery
Funds
Name of Federal Agency: Department of Treasury
Pass Through Entity: California State Water Resources Control Board
Federal Award Identification Number: SLFRP4371
266737
Criteria: California Water and Wastewater Arrearage Payment Program Guidelines Appendix A, Section 6.2.1, Notification of Customer Bill Credits, requires that the City allocate Wastewater Arrearage Program payments as bill credits to customer accounts within 60 days of receiving payment or August 5, 2022.
Condition: The City calculated the customer arrearages and credits to be applied as of June 15, 2021, but did not apply the wastewater credits to the customer accounts until November 8, 2022.
Cause: We understand that the delay was caused by problems with applying the credits in the City’s new utility billing system and technical assistance was needed from the utility billing system vendor to complete the process. However, City staff could not provide documentation that the delay was communicated to the grantor.
Effect: The City is not in compliance with the terms and conditions of payment related to the required program deadlines of the California Arrearage Payment Programs. As a result, the City could have been required to return moneys to the grantor.
Recommendation: Although it does not appear that the grantor disallowed any of the program costs, the City must develop procedures to ensure compliance with grant award terms and conditions of payment, including timely use of grant funds. In the event the City encounters delays that affect timely compliance, the City should communicate with the grantor and retain documentation of any such communications to show that they occurred timely and the grantor was aware of the delay.
View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.