Audit 27432

FY End
2022-06-30
Total Expended
$6.46M
Findings
8
Programs
10
Organization: City of El Cajon (CA)
Year: 2022 Accepted: 2023-03-29

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
32614 2022-001 Significant Deficiency - L
32615 2022-002 - Yes L
32616 2022-003 Significant Deficiency - M
32617 2022-004 - - M
609056 2022-001 Significant Deficiency - L
609057 2022-002 - Yes L
609058 2022-003 Significant Deficiency - M
609059 2022-004 - - M

Contacts

Name Title Type
GUANBKQWK6J3 Clay Schoen Auditee
6194411543 Brianna Schultz Auditor
No contacts on file

Notes to SEFA

Accounting Policies: (a)Scope of PresentationThe accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal activity of the City of El Cajon under programs of the federal government for the year ended June 30, 2022. The information on this Schedule is prepared 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 operations of the City, it is not intended to and does not present the financial position, changes in net position and changes in cash flows, where applicable, of the City.(b)Basis of AccountingThe expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles of in OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.

Finding Details

2022-001 ? Subaward Reporting Requirements for Federal Funding Accountability and Transparency Act (FFATA) Significant Deficiency Federal Program Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Assistance Listing Number 21.027 Criteria The requirements of 2 CFR Part 170 Appendix A state 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 month following the month in which the direct recipient awards such subawards. Part 3 of the compliance supplement requires this reporting at the $30,000 threshold, however, CSLFRF-specific guidance provided a higher threshold of $50,000. 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. 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.
2022-002 ? Subaward Reporting Requirements for Federal Funding Accountability and Transparency Act (FFATA) Noncompliance Federal Program Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Assistance Listing Number 21.027 Criteria The requirements of 2 CFR Part 170 Appendix A state 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 month following the month in which the direct recipient awards such subawards. Part 3 of the compliance supplement requires this reporting at the $30,000 threshold, however, CSLFRF-specific guidance provided a higher threshold of $50,000. Condition During the audit, we identified one subgrant greater than $50,000 which was awarded in the fiscal year 2021-22. It was noted that FFATA subaward reporting was not submitted. The dollar amount of this subaward was $118,810. Cause The City did not have controls in place to ensure FSRS reporting was completed in the required timeframe. 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.
2022-003 ? Subrecipient Agreements Significant Deficiency Federal Program Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Assistance Listing Number 21.027 Criteria The requirements of 2 CFR Part 200.332 state the various requirements of subrecipient agreements, which include the assistance listing number of the grant funding being passed through, and indication that the subrecipient would be subject to single audit requirements as set forth in 2 CFR Part 200, Subpart F (Uniform Guidance). Condition During the audit, we noted the agreement with subrecipients did not include the items noted in criteria above. Cause The City did not have controls in place to ensure required information was included in the subrecipient agreement. Effect The City could jeopardize future grant funding due to program noncompliance. Questioned Costs None. Recommendation We recommend the City review 2 CFR Part 200 to ensure information required in subrecipient agreements is properly included. Management?s Response See Corrective Action Plan.
2022-004 ? Subrecipient Agreements Noncompliance Federal Program Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Assistance Listing Number 21.027 Criteria The requirements of 2 CFR Part 200.332 state the various requirements of subrecipient agreements, which include the assistance listing number of the grant funding being passed through, and indication that the subrecipient would be subject to single audit requirements as set forth in 2 CFR Part 200, Subpart F (Uniform Guidance). Condition During the audit, we noted the agreement with subrecipients did not include the items noted in criteria above. Cause The City did not have controls in place to ensure required information was included in the subrecipient agreement. Effect The City could jeopardize future grant funding due to program noncompliance. Questioned Costs None. Recommendation We recommend the City review 2 CFR Part 200 to ensure information required in subrecipient agreements is properly included. Management?s Response See Corrective Action Plan.
2022-001 ? Subaward Reporting Requirements for Federal Funding Accountability and Transparency Act (FFATA) Significant Deficiency Federal Program Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Assistance Listing Number 21.027 Criteria The requirements of 2 CFR Part 170 Appendix A state 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 month following the month in which the direct recipient awards such subawards. Part 3 of the compliance supplement requires this reporting at the $30,000 threshold, however, CSLFRF-specific guidance provided a higher threshold of $50,000. 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. 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.
2022-002 ? Subaward Reporting Requirements for Federal Funding Accountability and Transparency Act (FFATA) Noncompliance Federal Program Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Assistance Listing Number 21.027 Criteria The requirements of 2 CFR Part 170 Appendix A state 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 month following the month in which the direct recipient awards such subawards. Part 3 of the compliance supplement requires this reporting at the $30,000 threshold, however, CSLFRF-specific guidance provided a higher threshold of $50,000. Condition During the audit, we identified one subgrant greater than $50,000 which was awarded in the fiscal year 2021-22. It was noted that FFATA subaward reporting was not submitted. The dollar amount of this subaward was $118,810. Cause The City did not have controls in place to ensure FSRS reporting was completed in the required timeframe. 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.
2022-003 ? Subrecipient Agreements Significant Deficiency Federal Program Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Assistance Listing Number 21.027 Criteria The requirements of 2 CFR Part 200.332 state the various requirements of subrecipient agreements, which include the assistance listing number of the grant funding being passed through, and indication that the subrecipient would be subject to single audit requirements as set forth in 2 CFR Part 200, Subpart F (Uniform Guidance). Condition During the audit, we noted the agreement with subrecipients did not include the items noted in criteria above. Cause The City did not have controls in place to ensure required information was included in the subrecipient agreement. Effect The City could jeopardize future grant funding due to program noncompliance. Questioned Costs None. Recommendation We recommend the City review 2 CFR Part 200 to ensure information required in subrecipient agreements is properly included. Management?s Response See Corrective Action Plan.
2022-004 ? Subrecipient Agreements Noncompliance Federal Program Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Assistance Listing Number 21.027 Criteria The requirements of 2 CFR Part 200.332 state the various requirements of subrecipient agreements, which include the assistance listing number of the grant funding being passed through, and indication that the subrecipient would be subject to single audit requirements as set forth in 2 CFR Part 200, Subpart F (Uniform Guidance). Condition During the audit, we noted the agreement with subrecipients did not include the items noted in criteria above. Cause The City did not have controls in place to ensure required information was included in the subrecipient agreement. Effect The City could jeopardize future grant funding due to program noncompliance. Questioned Costs None. Recommendation We recommend the City review 2 CFR Part 200 to ensure information required in subrecipient agreements is properly included. Management?s Response See Corrective Action Plan.