Finding Text
Item 2023‐003 Performance Reporting – Annual Project and Expenditure Report
Coronavirus State and Local Fiscal Recovery Fund ALN# 21.027
U.S. Department of Treasury
Grant period – Year ended September 30, 2023
Criteria – 2 CFR 200.303 requires the non‐Federal entity to “(a) establish and maintain effective
internal controls over the Federal award that provides reasonable assurance that the non‐Federal
entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal
award.” Grantees should have controls in place to ensure that required reporting requirements
under the compliance supplement are satisfied. 2 CFR 200.328 requires the City to file the Annual
Project and Expenditure Report under the Performance Reporting requirement of the grant.
Condition – Adequate controls were not in place to ensure that annual reporting was filed in
accordance with performance reporting requirements.
Cause – Changes in leadership roles at the grantee led to a lack of sufficient controls over the
communication of the reporting requirement to ensure the accuracy and completeness of
performance reporting under the grant.
Effect – Lack of notification of the reporting requirement could lead to disallowed costs. We noted
that the annual report was subsequently submitted to the grantor. However, our audit disclosed no
instances of unallowable costs.
Questioned Costs – Not determinable.
Recommendation – We recommend the strengthening of controls to ensure annual reporting
required under the compliance supplement is performed in a timely manner.
Management’s Response – The City will strengthen the controls in place to provide assurance that
annual reporting is performed timely in accordance with program guidelines.