Finding Text
Criteria: In accordance with 31 CFR Section 35.4(c), the City should provide an annual report detailing the accounting for the use of the federal award program funds. In addition, the report should be completed and submitted by April 30th of the following year.
Condition: The City did not file the annual report by the required deadline. The report also included inaccurate information regarding the amount spent.
Cause: The City does not have adequate controls and procedures over reporting.
Effect: The City did not file the annual report with the correct amount of expenditures or within the proper time frame.
Context: The City’s annual report was not filed until August. Additionally, the City’s annual report did not reconcile to the amount expended in the amount of $646,575.
Recommendation: The City should review their established policies and procedures and make any necessary changes to ensure an effective control environment.
Management’s Corrective Action Plan: The City had significant difficulties accessing the reporting website, and filed the report on the day access was granted. However, the City will review their established policies and procedures and make any necessary changes to ensure an effective control environment.