Assessment of Federal Recovery Act Grant Controls - April 2011
Assessment of Federal Recovery Act Grant Controls
Released April 2011 Download the Full Report here Download highlights here We undertook this audit because use of federal recovery act (American Recovery and Reinvestment Act) funds is subject to special procurement, tracking, reporting, and transparency requirements. We previously reviewed the Department of Aviation’s controls over its two recovery act grants. This report focuses on controls to comply with the act requirements for the remainder of the city’s recovery act grants. |
Controls to Ensure Accurate and Timely Reporting
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We found:
- City departments require stronger controls to mitigate the risks of fraud, ensure timely drawdown of grant funds, monitor subrecipient performance, meet project completion dates, and ensure compliance with construction, service, and subrecipient contracts
- While vendor selections were consistent with recovery act requirements, most contracts lack specific
required provisions - Central oversight would strengthen citywide grant management
- The city’s compliance with federal guidelines for allocating administrative costs is unclear
- Using the grant funds to hire 73 additional police officers will increase general fund operating costs once the grant funding
periods are over