Finding Text
Performance Reporting
Federal Program: American Relief Plan Act (ARPA) ALN 21.027
Federal Agency: U.S. Department of Treasury
Federal Award Year: 2021
Type of Finding: Significant Deficiency in Internal Control over Compliance
and Noncompliance
Criteria: The American Rescue Plan Act (ARPA) was signed into law and established the
Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery
Fund, which together make up the Coronavirus State and Local Fiscal Recovery
Funds (“SLFRF”) program. Per review of the Compliance and Reporting Guidance
for the SLFRF program, metropolitan cities with a population below 250,000
residents that are allocated less than $10 million in SLRFR funding are required to
submit an annual Project and Expenditure Report by April 30th.
Condition: During our review of the federal program, we noted that the City did not submit the
required report by April 30th. The report was submitted on October 23rd.
Cause: The City lacks internal controls over the reporting deadlines for the program.
Effect: Without proper internal controls, the City cannot prevent or detect reporting
deadlines. Failure to submit the Project and Expenditure Report timely may lead to
noncompliance with federal requirements.
Questioned Costs: $0
Recommendation: We recommend the City adhere to the Compliance and Reporting Guidance for the
SLFRF program and establish internal controls to ensure the City submits required
reports when they are due.
Management’s views: Management agrees with the finding. See corrective action plan on page 136.