FAC Explorer

Audit 2659

FY End
2022-06-30
Total Expended
$7.82M
Findings
6
Programs
7
Organization: City of Perris (CA)
Year: 2022 Accepted: 2023-11-08
Auditor: Rogers Anderson Malody & Scott LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1452 2022-002 Significant Deficiency - L
1453 2022-003 Significant Deficiency - L
1454 2022-003 Significant Deficiency - L
577894 2022-002 Significant Deficiency - L
577895 2022-003 Significant Deficiency - L
577896 2022-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $6.45M - 1
14.218 Community Development Block Grants/entitlement Grants $986,748 Yes 2
21.019 Coronavirus Relief Fund $258,389 - 0
10.551 Supplemental Nutrition Assistance Program $91,714 - 0
11.300 Investments for Public Works and Economic Development Facilities $14,038 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $13,433 - 0
97.062 Scientific Leadership Awards $6,045 - 0

Contacts

Name Title Type
N3XWMNUZY541 Stephen Ajobiewe Auditee
9519434610 Terry Shea Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on th emodified accrual basis of accounting. Under the modified accrual basis of accounting expenditures are incurred when the City becomes obligated fo rpayment as a result of the receipt of the related goods and services. Expenditures reported include any property or equipment acquisitions incurred under the federal program. De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of the City of Perris (the City) under federal programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations 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 City, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City.

Finding Details

Finding 2022-002
Federal Program: CDBG-Entitlement Grants Cluster, AL 14.218. Criteria: The requirements of 2 CFR Part 170 Appendix A states that direct recipients of grants or cooperative agreements are required to report first-tier subawards of $50,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Report System (FSRS) by the end of the following month in which the direct recipient awards such subawards. Part 3 of the compliance supplement requires this reporting at the $30,000. Condition: During the audit, we noted reporting of subaward information to FSRS was not performed. Cause: The City did not have controls in place to ensure FSRS reporting was completed in the required timeframe. Identification as a Repeat Finding: This is not a repeat finding. Effect: The City could jeopardize future grant funding due to program noncompliance. Questioned Costs: None. Recommendation: We recommend the City implement a tracking system to remind staff of the various reports due and respective deadlines. Management’s Response: See Corrective Action Plan.
Finding 2022-003
Federal Program: CDBG-Entitlement Grants Cluster, AL 14.218 American Rescue Plan (ARPA) Act, AL 21.027. Criteria: As required by CFR 200.512, the single audit must be submitted to the federal audit clearinghouse within 30 days after the City receives the audit report or nine months from fiscal year-end. Condition: Delay of the financial statement audit, therefore the single audit was delayed and not able to meet the required submission date. Cause: The City did not have controls in place to ensure financial statement audit was completed within a timely manner. Identification as a Repeat Finding: This is not a repeat finding. Effect: The City could jeopardize future grant funding due to program noncompliance and experience delays in the finalization of the single audit. Questioned Costs: None. Recommendation: We recommend the City implement a tracking system to remind staff of the various reports due and respective deadlines. Management’s Response: See Corrective Action Plan.
Finding 2022-003
Federal Program: CDBG-Entitlement Grants Cluster, AL 14.218 American Rescue Plan (ARPA) Act, AL 21.027. Criteria: As required by CFR 200.512, the single audit must be submitted to the federal audit clearinghouse within 30 days after the City receives the audit report or nine months from fiscal year-end. Condition: Delay of the financial statement audit, therefore the single audit was delayed and not able to meet the required submission date. Cause: The City did not have controls in place to ensure financial statement audit was completed within a timely manner. Identification as a Repeat Finding: This is not a repeat finding. Effect: The City could jeopardize future grant funding due to program noncompliance and experience delays in the finalization of the single audit. Questioned Costs: None. Recommendation: We recommend the City implement a tracking system to remind staff of the various reports due and respective deadlines. Management’s Response: See Corrective Action Plan.
Finding 2022-002
Federal Program: CDBG-Entitlement Grants Cluster, AL 14.218. Criteria: The requirements of 2 CFR Part 170 Appendix A states that direct recipients of grants or cooperative agreements are required to report first-tier subawards of $50,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Report System (FSRS) by the end of the following month in which the direct recipient awards such subawards. Part 3 of the compliance supplement requires this reporting at the $30,000. Condition: During the audit, we noted reporting of subaward information to FSRS was not performed. Cause: The City did not have controls in place to ensure FSRS reporting was completed in the required timeframe. Identification as a Repeat Finding: This is not a repeat finding. Effect: The City could jeopardize future grant funding due to program noncompliance. Questioned Costs: None. Recommendation: We recommend the City implement a tracking system to remind staff of the various reports due and respective deadlines. Management’s Response: See Corrective Action Plan.
Finding 2022-003
Federal Program: CDBG-Entitlement Grants Cluster, AL 14.218 American Rescue Plan (ARPA) Act, AL 21.027. Criteria: As required by CFR 200.512, the single audit must be submitted to the federal audit clearinghouse within 30 days after the City receives the audit report or nine months from fiscal year-end. Condition: Delay of the financial statement audit, therefore the single audit was delayed and not able to meet the required submission date. Cause: The City did not have controls in place to ensure financial statement audit was completed within a timely manner. Identification as a Repeat Finding: This is not a repeat finding. Effect: The City could jeopardize future grant funding due to program noncompliance and experience delays in the finalization of the single audit. Questioned Costs: None. Recommendation: We recommend the City implement a tracking system to remind staff of the various reports due and respective deadlines. Management’s Response: See Corrective Action Plan.
Finding 2022-003
Federal Program: CDBG-Entitlement Grants Cluster, AL 14.218 American Rescue Plan (ARPA) Act, AL 21.027. Criteria: As required by CFR 200.512, the single audit must be submitted to the federal audit clearinghouse within 30 days after the City receives the audit report or nine months from fiscal year-end. Condition: Delay of the financial statement audit, therefore the single audit was delayed and not able to meet the required submission date. Cause: The City did not have controls in place to ensure financial statement audit was completed within a timely manner. Identification as a Repeat Finding: This is not a repeat finding. Effect: The City could jeopardize future grant funding due to program noncompliance and experience delays in the finalization of the single audit. Questioned Costs: None. Recommendation: We recommend the City implement a tracking system to remind staff of the various reports due and respective deadlines. Management’s Response: See Corrective Action Plan.