FAC Explorer

Audit 17569

FY End
2022-12-31
Total Expended
$5.22M
Findings
2
Programs
14
Organization: City of Newark (DE)
Year: 2022 Accepted: 2023-09-18
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
12876 2022-001 Significant Deficiency - I
589318 2022-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.23M Yes 1
93.575 Child Care and Development Block Grant $246,869 - 0
14.218 Community Development Block Grants/entitlement Grants $215,960 - 0
66.468 Capitalization Grants for Drinking Water State Revolving Funds $94,907 - 0
66.458 Capitalization Grants for Clean Water State Revolving Funds $74,129 - 0
16.922 Equitable Sharing Program $44,809 - 0
20.616 National Priority Safety Programs $24,431 - 0
20.600 State and Community Highway Safety $18,078 - 0
97.047 Building Resilient Infrastructure and Communities $16,627 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $14,398 - 0
16.999 Fy21 Dea Task Force $11,016 - 0
20.607 Alcohol Open Container Requirements $8,943 - 0
95.001 High Intensity Drug Trafficking Areas Program $1,083 - 0
16.833 National Sexual Assault Kit Initiative $404 - 0

Contacts

Name Title Type
L3EMLJ4LBD95 Jill Hollander Auditee
3023667000 Bill Early Auditor
No contacts on file

Notes to SEFA

Title: Revolving Loan Fund Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Newark (the City) under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Clean Water and Drinking Water State Revolving Funds are revolving loan funds. Federally funded new loan proceeds provided under these programs are included as expenditures on the Schedule in the year incurred. The City had the following loan balance outstanding at December 31, 2022: Clean Water State Revolving Fund (66.458) $10,101,312; Drinking Water State Revolving Fund (66.468) $7,073,331.

Finding Details

Finding 2022-001
Finding Reference: 2022-001 Federal Agency: Department of Treasury Federal Program Title and ALN: Coronavirus State and Local Fiscal Recovery Funds (21.027) Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance Award Period: March 3, 2021 ? December 31, 2024, liquidated by December 31, 2026 Criteria or Specific Requirement: When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition/Context: Two vendors tested did not have proper documentation maintained to support suspension and debarment verification was performed prior to them being paid with federal funds. Per sam.gov, there was no history of the vendor being suspended or debarred. Questioned Costs: Undetermined Cause: The City?s policies and procedures did not require documentation be maintained to verify vendors are not suspended or debarred prior to paying with Federal grant funds. Effect: The City could make a disbursement to a vendor that is suspended or debarred. Recommendation: We recommend the City review its policies and procedures to require documentation be maintained to verify vendors are not suspended or debarred prior to being paid with federal funds. Views of Responsible Officials: The City concurs with the finding.
Finding 2022-001
Finding Reference: 2022-001 Federal Agency: Department of Treasury Federal Program Title and ALN: Coronavirus State and Local Fiscal Recovery Funds (21.027) Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance Award Period: March 3, 2021 ? December 31, 2024, liquidated by December 31, 2026 Criteria or Specific Requirement: When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition/Context: Two vendors tested did not have proper documentation maintained to support suspension and debarment verification was performed prior to them being paid with federal funds. Per sam.gov, there was no history of the vendor being suspended or debarred. Questioned Costs: Undetermined Cause: The City?s policies and procedures did not require documentation be maintained to verify vendors are not suspended or debarred prior to paying with Federal grant funds. Effect: The City could make a disbursement to a vendor that is suspended or debarred. Recommendation: We recommend the City review its policies and procedures to require documentation be maintained to verify vendors are not suspended or debarred prior to being paid with federal funds. Views of Responsible Officials: The City concurs with the finding.