City of Brighton

Finding 2023-001 Reporting Significant Deficiency, Internal Control Over Compliance ALN 21.027: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department Of Treasury Pass-Through Entity: N/A Criteria Or Specific Requirement: The Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) provided direct payments to states, U.S. territories, tribal governments, metropolitan cities, counties and nonentitlement units of local government that was to be utilized for specific projects or general government services according to the CSLFRF Final Rule. 2 CFR Section 200.301 requires clear performance goals, indicators, targets, and baseline data disclosure. The Compliance Supplement states that the key line items were obligations and expenditures and capital expenditures - quantifiable objective criteria to be reported on the Performance and Expenditure reports. Condition/Context: In our audit, we noted the City had a review process for the overall project and related expenditures; however, based on review of the process, the review process did not specifically address keys aspects of the Performance and Expenditure reports. Cause: The City did not have sufficient internal controls in place to ensure the appropriate review of the Performance and Expenditure reports prior to submission. Effect: Without adequate controls over federal expenditures reporting, the City may not detect an error in reporting requirements. Questioned Costs: N/A Identification As A Repeat Finding: N/A Recommendation: We recommend the City improve its internal controls by ensuring review of the Performance and Expenditure reports is done prior to submission by a person that did not prepared the information related to the key aspects of the report. Views Of Responsible Officials And Planned Corrective Action: The City agrees with the finding and has put together a correction action plan for the finding. See corrective action plan included in this report.