FAC Explorer

Audit 26739

FY End
2022-06-30
Total Expended
$26.31M
Findings
4
Programs
22
Organization: City of Des Moines, Iowa (IA)
Year: 2022 Accepted: 2023-03-30
Auditor: Rsm US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20779 2022-003 - - N
20780 2022-002 Material Weakness - L
597221 2022-003 - - N
597222 2022-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
21.023 Covid-19 - Emergency Rental Assistance Program $5.07M Yes 0
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $3.60M Yes 1
14.218 Community Development Block Grants/entitlement Grants $1.19M - 0
14.231 Covid-19 Emergency Solutions Grant Program $762,874 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $439,470 - 0
14.218 Covid-19 - Community Development Block Grants/entitlement Grants $420,236 - 0
14.239 Home Investment Partnerships Program $266,290 Yes 0
14.267 Continuum of Care Program $220,937 Yes 0
14.276 Youth Homelessness Demonstration Program $207,278 - 0
16.922 Equitable Sharing Program $182,301 - 0
10.923 Emergency Watershed Protection Program $177,723 - 0
20.600 State and Community Highway Safety $108,662 - 0
21.019 Covid-19 - Coronavirus Relief Fund $104,612 - 0
14.401 Fair Housing Assistance Program_state and Local $59,000 - 0
16.034 Covid-19 - Coronavirus Emergency Supplemental Funding Program $50,175 - 0
14.231 Emergency Solutions Grant Program $23,792 - 0
14.239 Covid-19 - Home Investment Partnerships Program $23,562 Yes 0
16.609 Project Safe Neighborhoods $23,368 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $20,000 - 0
16.710 Public Safety Partnership and Community Policing Grants $14,700 - 0
97.067 Homeland Security Grant Program $6,598 - 0
16.588 Violence Against Women Formula Grants $5,628 - 0

Contacts

Name Title Type
P37WYX16LC16 Tim McCarthy Auditee
5152834540 Kevin Smith Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expendituresare recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenses arenot allowable or are limited as to reimbursement. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Des Moines, Iowa under programs of the federal government for the year ended June 30, 2022. The accompanying schedule of expenditures of federal awards does not include any awards pertaining to the Municipal Housing Agency, an enterprise fund of the City or the Des Moines Airport Authority and the Des Moines Public Library Foundation, which are discretely presented component units, which are reported under separate covers. All other federal financial assistance received directly from federal agencies as well as federal financial assistance passed through other government agencies expended during the year is included in the Schedule. The information in this Schedule is presented in accordance with the requirements of the 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 operations of the City, it is not intended to and does not present the financial position, change in net positions or cash flows of the City. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-003
Finding 2022-003, Requirement N (Special Tests -Housing Quality Standards) U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnership Program ? ALN 14.239 Federal Award Year 2022 Finding: The City did not have sufficient controls to properly track and perform timely inspections on housing as inspections came due as required under the program. Criteria: During the period of affordability (i.e., the period for which the nonfederal entity must maintain subsidized housing) for HOME assisted rental housing, the participating jurisdiction must perform on-site inspections to determine compliance with property standards and verify the information submitted by the owners no less than (a) every three years for projects containing one to four units. Condition: The City had not performed an inspection on 2 of the 6 houses tested in the last three years. Cause: The City?s controls were not operating effectively to ensure that the inspections were done on schedule. Effect: Potential for improper reporting can result in actions taken by oversight agencies which could impact future funding. Questioned costs: None Context: 2 of the 6 rental properties tested did not have an inspection performed in the last 3 years per the compliance requirements. Recommendation: We recommend the City implement controls to ensure that the inspections are properly identified, tracked and performed. City management?s response: Management agrees with this finding.
Finding 2022-002
Finding 2022-002, Requirement L (Reporting) U.S. Department of Treasury COVID-19? Coronavirus State and Local Fiscal Recovery Funds (ARPA) ? ALN 21.027 Federal Award Year 2022 Finding: The City did not have sufficient controls to properly identity, track and report expenditures for the required quarterly reports for ALN 21.027 and proper reporting of Schedule of expenditures of federal awards (SEFA). Criteria: The City should be reporting in a timely manner (30 days after quarter end) all ARPA expenditures and reporting them on the SEFA based on when expended. Condition: The City recorded all dollars transferred out of the special revenue fund created for the program as expenditures on the SEFA and the required reports even if the dollars were not truly expended. The SEFA was subsequently adjusted to accurately report the expenditures. The City reported expenditures based on Council approval of dollars and not when the funds were expended. Cause: The City?s controls were not operating effectively to ensure that the ARPA expenditures were being identified, tracked, and reported. Effect: Potential for improper reporting can result in actions taken by oversight agencies which could impact future funding. Questioned costs: None Context: Two quarterly reports were tested and one included expenditures that had not been properly identified. Recommendation: We recommend that the City implement controls to ensure that the ARPA expenditures are properly identified, tracked and reported. City management?s response: Management agrees with this finding.
Finding 2022-003
Finding 2022-003, Requirement N (Special Tests -Housing Quality Standards) U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnership Program ? ALN 14.239 Federal Award Year 2022 Finding: The City did not have sufficient controls to properly track and perform timely inspections on housing as inspections came due as required under the program. Criteria: During the period of affordability (i.e., the period for which the nonfederal entity must maintain subsidized housing) for HOME assisted rental housing, the participating jurisdiction must perform on-site inspections to determine compliance with property standards and verify the information submitted by the owners no less than (a) every three years for projects containing one to four units. Condition: The City had not performed an inspection on 2 of the 6 houses tested in the last three years. Cause: The City?s controls were not operating effectively to ensure that the inspections were done on schedule. Effect: Potential for improper reporting can result in actions taken by oversight agencies which could impact future funding. Questioned costs: None Context: 2 of the 6 rental properties tested did not have an inspection performed in the last 3 years per the compliance requirements. Recommendation: We recommend the City implement controls to ensure that the inspections are properly identified, tracked and performed. City management?s response: Management agrees with this finding.
Finding 2022-002
Finding 2022-002, Requirement L (Reporting) U.S. Department of Treasury COVID-19? Coronavirus State and Local Fiscal Recovery Funds (ARPA) ? ALN 21.027 Federal Award Year 2022 Finding: The City did not have sufficient controls to properly identity, track and report expenditures for the required quarterly reports for ALN 21.027 and proper reporting of Schedule of expenditures of federal awards (SEFA). Criteria: The City should be reporting in a timely manner (30 days after quarter end) all ARPA expenditures and reporting them on the SEFA based on when expended. Condition: The City recorded all dollars transferred out of the special revenue fund created for the program as expenditures on the SEFA and the required reports even if the dollars were not truly expended. The SEFA was subsequently adjusted to accurately report the expenditures. The City reported expenditures based on Council approval of dollars and not when the funds were expended. Cause: The City?s controls were not operating effectively to ensure that the ARPA expenditures were being identified, tracked, and reported. Effect: Potential for improper reporting can result in actions taken by oversight agencies which could impact future funding. Questioned costs: None Context: Two quarterly reports were tested and one included expenditures that had not been properly identified. Recommendation: We recommend that the City implement controls to ensure that the ARPA expenditures are properly identified, tracked and reported. City management?s response: Management agrees with this finding.