Controls over cares act and fema funding in response to covid-19 —february 2021
Controls over CARES Act and FEMA Funding in Response to COVID-19
Released February 2021
Download the audit report here
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We undertook this audit to review the controls in place related to CARES Act funding and FEMA Public Assistance reimbursement. The CARES Act was signed into law on March 27, 2020, creating the Coronavirus Relief Fund. The city received $88 million from the Department of Treasury in Coronavirus Relief Funds and has the ability to apply for FEMA Public Assistance reimbursement for eligible expenditures.
- The city has generally designed controls to ensure CARES Act funds and FEMA reimbursements are spent in accordance with federal law; however, we noted some gaps in the framework that could lead to errors.
- The city hired Landmark Consulting, LLC to provide assistance and support to the city for federal grants and compliance management; however, the city is ultimately responsible for ensuring compliance with federal guidelines.
- The city has established a process to monitor and report the spending.
- Our analysis flagged 25 employees who appear to have received more than $1,500 between July and September 2020.
- Uncorrected issues that we raised in our 2019 audit of citywide overtime could pose problems if the city seeks FEMA reimbursement of overtime costs related to the COVID-19 emergency.