Audit 293380

FY End
2022-06-30
Total Expended
$1.08M
Findings
26
Programs
6
Organization: City of Espanola (NM)
Year: 2022 Accepted: 2024-03-04
Auditor: Cordova CPAS LLC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
372085 2022-007 Material Weakness - AB
372086 2022-008 Material Weakness - L
372087 2022-008 Material Weakness - L
372088 2022-008 Material Weakness - L
372089 2022-008 Material Weakness - L
372090 2022-008 Material Weakness - L
372091 2022-008 Material Weakness - L
372092 2022-009 - - L
372093 2022-009 - - L
372094 2022-009 - - L
372095 2022-009 - - L
372096 2022-009 - - L
372097 2022-009 - - L
948527 2022-007 Material Weakness - AB
948528 2022-008 Material Weakness - L
948529 2022-008 Material Weakness - L
948530 2022-008 Material Weakness - L
948531 2022-008 Material Weakness - L
948532 2022-008 Material Weakness - L
948533 2022-008 Material Weakness - L
948534 2022-009 - - L
948535 2022-009 - - L
948536 2022-009 - - L
948537 2022-009 - - L
948538 2022-009 - - L
948539 2022-009 - - L

Contacts

Name Title Type
J69EDK1JAME9 April Moya Auditee
5054695976 Bobby Cordova Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the City of Espanola and is presented on the modified accrual basis of accounting, which is the same basis as was used to prepare the fund financial statements. The information in this Schedule is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The City did not elect to use the allowed 10% indirect cost rate.

Finding Details

Federal Program Information: Funding Agency: Department of the Treasury Title: Coronavirus State and Local Fiscal Recovery Fund Program Assistance Listing Number: 21.027 Compliance Requirement: Allowable Activities/Allowable Costs Award Year: July 1, 2021 to June 30, 2022 Condition: During our audit, we noted that the following circumstances in our testwork over disbursements for the Coronavirus State and Local Fiscal Recovery Fund program:  During our examination of disbursements, there were three transactions totaling $18,287 that the City had no supporting documentation to substantiate that the transactions had gone through the proper internal controls of the City and were allowable activities and were for allowable costs.  During our examination of disbursements, there were three transactions for $12,958 where the City did not go through the City’s internal control process for disbursements of having purchase requisitions created and approved prior to the creation of approved purchase orders. These transactions went through a direct pay voucher without having the proper approvals, which is not in compliance with the City’s approved policies and procedures over disbursements. Criteria: The City must establish internal controls over compliance with allowable activities, allowable costs (2 CFR 200.303). Effect: The City did not follow its properly designed internal control system to ensure expenditures complied with the allowable activities/allowable costs requirements for the Coronavirus State and Local Fiscal Recovery Fund program. Questioned Costs: $18,287 Cause: The City did not follow its system of internal control for some of its purchases and there were some transactions that the City could not locate because they were not properly filed. Auditors’ Recommendation: We recommend that the City ensure that it follows its internal controls for all transactions to ensure proper review of all costs associated with the Coronavirus State and Local Fiscal Recovery Fund expenditures. Agency’s Response: The Finance Department will immediately implement processes and procedures for grant requirements to ensure:  Staff follow processes and procedures  Implement controls for expending the funds  Retain proper documentation for processing reimbursements  Maintain those documents for future audit The responsible party for this finding is the finance director.
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: During our procedures over the Schedule of Expenditures of Federal Awards we noted the City did not accurately complete a Schedule of Expenditures and Federal Awards for audit purposes. The Schedule of Expenditures and Federal Awards did not indicate if the programs were directly funded or if they were passed through by another entity. Criteria: OMB Uniform Guidance requires award identification to include, as applicable, the Federal Assistance Number and title, the award number and years, the name of the federal agency, and the name of any applicable pass-through entities. Cause: The City hasn’t had to create a Schedule of Federal Awards in prior years as they have just recently started receiving federal funding and so they were not familiar with the process. Effect: The City is in violation of the Uniform Guidance requirements. Auditor’s Recommendation: We recommend that the City implement a system to ensure the City to implement systems that ensures items needed to prepare the Schedule of Expenditure and Federal Awards be done in the closing process so that when the audit starts the Schedule of Expenditure and Federal Awards is ready to be audited and is complete. Agency’s Response: The City is currently in the process of hiring additional finance staff to address the grant(s) requests for reimbursements and collecting the necessary information for the preparation of the Schedule of Expenditures of Federal Awards. The corrective action plan for this will be implemented by year end 0224. The responsible party for this finding is the finance director.
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: During our procedures over the Schedule of Expenditures of Federal Awards we noted the City did not accurately complete a Schedule of Expenditures and Federal Awards for audit purposes. The Schedule of Expenditures and Federal Awards did not indicate if the programs were directly funded or if they were passed through by another entity. Criteria: OMB Uniform Guidance requires award identification to include, as applicable, the Federal Assistance Number and title, the award number and years, the name of the federal agency, and the name of any applicable pass-through entities. Cause: The City hasn’t had to create a Schedule of Federal Awards in prior years as they have just recently started receiving federal funding and so they were not familiar with the process. Effect: The City is in violation of the Uniform Guidance requirements. Auditor’s Recommendation: We recommend that the City implement a system to ensure the City to implement systems that ensures items needed to prepare the Schedule of Expenditure and Federal Awards be done in the closing process so that when the audit starts the Schedule of Expenditure and Federal Awards is ready to be audited and is complete. Agency’s Response: The City is currently in the process of hiring additional finance staff to address the grant(s) requests for reimbursements and collecting the necessary information for the preparation of the Schedule of Expenditures of Federal Awards. The corrective action plan for this will be implemented by year end 0224. The responsible party for this finding is the finance director.
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: During our procedures over the Schedule of Expenditures of Federal Awards we noted the City did not accurately complete a Schedule of Expenditures and Federal Awards for audit purposes. The Schedule of Expenditures and Federal Awards did not indicate if the programs were directly funded or if they were passed through by another entity. Criteria: OMB Uniform Guidance requires award identification to include, as applicable, the Federal Assistance Number and title, the award number and years, the name of the federal agency, and the name of any applicable pass-through entities. Cause: The City hasn’t had to create a Schedule of Federal Awards in prior years as they have just recently started receiving federal funding and so they were not familiar with the process. Effect: The City is in violation of the Uniform Guidance requirements. Auditor’s Recommendation: We recommend that the City implement a system to ensure the City to implement systems that ensures items needed to prepare the Schedule of Expenditure and Federal Awards be done in the closing process so that when the audit starts the Schedule of Expenditure and Federal Awards is ready to be audited and is complete. Agency’s Response: The City is currently in the process of hiring additional finance staff to address the grant(s) requests for reimbursements and collecting the necessary information for the preparation of the Schedule of Expenditures of Federal Awards. The corrective action plan for this will be implemented by year end 0224. The responsible party for this finding is the finance director.
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: During our procedures over the Schedule of Expenditures of Federal Awards we noted the City did not accurately complete a Schedule of Expenditures and Federal Awards for audit purposes. The Schedule of Expenditures and Federal Awards did not indicate if the programs were directly funded or if they were passed through by another entity. Criteria: OMB Uniform Guidance requires award identification to include, as applicable, the Federal Assistance Number and title, the award number and years, the name of the federal agency, and the name of any applicable pass-through entities. Cause: The City hasn’t had to create a Schedule of Federal Awards in prior years as they have just recently started receiving federal funding and so they were not familiar with the process. Effect: The City is in violation of the Uniform Guidance requirements. Auditor’s Recommendation: We recommend that the City implement a system to ensure the City to implement systems that ensures items needed to prepare the Schedule of Expenditure and Federal Awards be done in the closing process so that when the audit starts the Schedule of Expenditure and Federal Awards is ready to be audited and is complete. Agency’s Response: The City is currently in the process of hiring additional finance staff to address the grant(s) requests for reimbursements and collecting the necessary information for the preparation of the Schedule of Expenditures of Federal Awards. The corrective action plan for this will be implemented by year end 0224. The responsible party for this finding is the finance director.
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: During our procedures over the Schedule of Expenditures of Federal Awards we noted the City did not accurately complete a Schedule of Expenditures and Federal Awards for audit purposes. The Schedule of Expenditures and Federal Awards did not indicate if the programs were directly funded or if they were passed through by another entity. Criteria: OMB Uniform Guidance requires award identification to include, as applicable, the Federal Assistance Number and title, the award number and years, the name of the federal agency, and the name of any applicable pass-through entities. Cause: The City hasn’t had to create a Schedule of Federal Awards in prior years as they have just recently started receiving federal funding and so they were not familiar with the process. Effect: The City is in violation of the Uniform Guidance requirements. Auditor’s Recommendation: We recommend that the City implement a system to ensure the City to implement systems that ensures items needed to prepare the Schedule of Expenditure and Federal Awards be done in the closing process so that when the audit starts the Schedule of Expenditure and Federal Awards is ready to be audited and is complete. Agency’s Response: The City is currently in the process of hiring additional finance staff to address the grant(s) requests for reimbursements and collecting the necessary information for the preparation of the Schedule of Expenditures of Federal Awards. The corrective action plan for this will be implemented by year end 0224. The responsible party for this finding is the finance director.
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: During our procedures over the Schedule of Expenditures of Federal Awards we noted the City did not accurately complete a Schedule of Expenditures and Federal Awards for audit purposes. The Schedule of Expenditures and Federal Awards did not indicate if the programs were directly funded or if they were passed through by another entity. Criteria: OMB Uniform Guidance requires award identification to include, as applicable, the Federal Assistance Number and title, the award number and years, the name of the federal agency, and the name of any applicable pass-through entities. Cause: The City hasn’t had to create a Schedule of Federal Awards in prior years as they have just recently started receiving federal funding and so they were not familiar with the process. Effect: The City is in violation of the Uniform Guidance requirements. Auditor’s Recommendation: We recommend that the City implement a system to ensure the City to implement systems that ensures items needed to prepare the Schedule of Expenditure and Federal Awards be done in the closing process so that when the audit starts the Schedule of Expenditure and Federal Awards is ready to be audited and is complete. Agency’s Response: The City is currently in the process of hiring additional finance staff to address the grant(s) requests for reimbursements and collecting the necessary information for the preparation of the Schedule of Expenditures of Federal Awards. The corrective action plan for this will be implemented by year end 0224. The responsible party for this finding is the finance director.
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: The City’s fiscal year ended June 30, 2022, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period as required by 2 CFR Section 200.50(c). Criteria: The Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is immediately working to get current with the accounting processes that would enable the timely performance of the annual financial audit. The City is in the process of hiring more finance staff to ensure accounting data is captured accurately and timely. The corrective action plan will be implemented by year end 2024. The responsible party for this finding is the finance director. 151
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: The City’s fiscal year ended June 30, 2022, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period as required by 2 CFR Section 200.50(c). Criteria: The Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is immediately working to get current with the accounting processes that would enable the timely performance of the annual financial audit. The City is in the process of hiring more finance staff to ensure accounting data is captured accurately and timely. The corrective action plan will be implemented by year end 2024. The responsible party for this finding is the finance director. 151
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: The City’s fiscal year ended June 30, 2022, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period as required by 2 CFR Section 200.50(c). Criteria: The Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is immediately working to get current with the accounting processes that would enable the timely performance of the annual financial audit. The City is in the process of hiring more finance staff to ensure accounting data is captured accurately and timely. The corrective action plan will be implemented by year end 2024. The responsible party for this finding is the finance director. 151
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: The City’s fiscal year ended June 30, 2022, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period as required by 2 CFR Section 200.50(c). Criteria: The Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is immediately working to get current with the accounting processes that would enable the timely performance of the annual financial audit. The City is in the process of hiring more finance staff to ensure accounting data is captured accurately and timely. The corrective action plan will be implemented by year end 2024. The responsible party for this finding is the finance director. 151
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: The City’s fiscal year ended June 30, 2022, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period as required by 2 CFR Section 200.50(c). Criteria: The Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is immediately working to get current with the accounting processes that would enable the timely performance of the annual financial audit. The City is in the process of hiring more finance staff to ensure accounting data is captured accurately and timely. The corrective action plan will be implemented by year end 2024. The responsible party for this finding is the finance director. 151
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: The City’s fiscal year ended June 30, 2022, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period as required by 2 CFR Section 200.50(c). Criteria: The Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is immediately working to get current with the accounting processes that would enable the timely performance of the annual financial audit. The City is in the process of hiring more finance staff to ensure accounting data is captured accurately and timely. The corrective action plan will be implemented by year end 2024. The responsible party for this finding is the finance director. 151
Federal Program Information: Funding Agency: Department of the Treasury Title: Coronavirus State and Local Fiscal Recovery Fund Program Assistance Listing Number: 21.027 Compliance Requirement: Allowable Activities/Allowable Costs Award Year: July 1, 2021 to June 30, 2022 Condition: During our audit, we noted that the following circumstances in our testwork over disbursements for the Coronavirus State and Local Fiscal Recovery Fund program:  During our examination of disbursements, there were three transactions totaling $18,287 that the City had no supporting documentation to substantiate that the transactions had gone through the proper internal controls of the City and were allowable activities and were for allowable costs.  During our examination of disbursements, there were three transactions for $12,958 where the City did not go through the City’s internal control process for disbursements of having purchase requisitions created and approved prior to the creation of approved purchase orders. These transactions went through a direct pay voucher without having the proper approvals, which is not in compliance with the City’s approved policies and procedures over disbursements. Criteria: The City must establish internal controls over compliance with allowable activities, allowable costs (2 CFR 200.303). Effect: The City did not follow its properly designed internal control system to ensure expenditures complied with the allowable activities/allowable costs requirements for the Coronavirus State and Local Fiscal Recovery Fund program. Questioned Costs: $18,287 Cause: The City did not follow its system of internal control for some of its purchases and there were some transactions that the City could not locate because they were not properly filed. Auditors’ Recommendation: We recommend that the City ensure that it follows its internal controls for all transactions to ensure proper review of all costs associated with the Coronavirus State and Local Fiscal Recovery Fund expenditures. Agency’s Response: The Finance Department will immediately implement processes and procedures for grant requirements to ensure:  Staff follow processes and procedures  Implement controls for expending the funds  Retain proper documentation for processing reimbursements  Maintain those documents for future audit The responsible party for this finding is the finance director.
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: During our procedures over the Schedule of Expenditures of Federal Awards we noted the City did not accurately complete a Schedule of Expenditures and Federal Awards for audit purposes. The Schedule of Expenditures and Federal Awards did not indicate if the programs were directly funded or if they were passed through by another entity. Criteria: OMB Uniform Guidance requires award identification to include, as applicable, the Federal Assistance Number and title, the award number and years, the name of the federal agency, and the name of any applicable pass-through entities. Cause: The City hasn’t had to create a Schedule of Federal Awards in prior years as they have just recently started receiving federal funding and so they were not familiar with the process. Effect: The City is in violation of the Uniform Guidance requirements. Auditor’s Recommendation: We recommend that the City implement a system to ensure the City to implement systems that ensures items needed to prepare the Schedule of Expenditure and Federal Awards be done in the closing process so that when the audit starts the Schedule of Expenditure and Federal Awards is ready to be audited and is complete. Agency’s Response: The City is currently in the process of hiring additional finance staff to address the grant(s) requests for reimbursements and collecting the necessary information for the preparation of the Schedule of Expenditures of Federal Awards. The corrective action plan for this will be implemented by year end 0224. The responsible party for this finding is the finance director.
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: During our procedures over the Schedule of Expenditures of Federal Awards we noted the City did not accurately complete a Schedule of Expenditures and Federal Awards for audit purposes. The Schedule of Expenditures and Federal Awards did not indicate if the programs were directly funded or if they were passed through by another entity. Criteria: OMB Uniform Guidance requires award identification to include, as applicable, the Federal Assistance Number and title, the award number and years, the name of the federal agency, and the name of any applicable pass-through entities. Cause: The City hasn’t had to create a Schedule of Federal Awards in prior years as they have just recently started receiving federal funding and so they were not familiar with the process. Effect: The City is in violation of the Uniform Guidance requirements. Auditor’s Recommendation: We recommend that the City implement a system to ensure the City to implement systems that ensures items needed to prepare the Schedule of Expenditure and Federal Awards be done in the closing process so that when the audit starts the Schedule of Expenditure and Federal Awards is ready to be audited and is complete. Agency’s Response: The City is currently in the process of hiring additional finance staff to address the grant(s) requests for reimbursements and collecting the necessary information for the preparation of the Schedule of Expenditures of Federal Awards. The corrective action plan for this will be implemented by year end 0224. The responsible party for this finding is the finance director.
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: During our procedures over the Schedule of Expenditures of Federal Awards we noted the City did not accurately complete a Schedule of Expenditures and Federal Awards for audit purposes. The Schedule of Expenditures and Federal Awards did not indicate if the programs were directly funded or if they were passed through by another entity. Criteria: OMB Uniform Guidance requires award identification to include, as applicable, the Federal Assistance Number and title, the award number and years, the name of the federal agency, and the name of any applicable pass-through entities. Cause: The City hasn’t had to create a Schedule of Federal Awards in prior years as they have just recently started receiving federal funding and so they were not familiar with the process. Effect: The City is in violation of the Uniform Guidance requirements. Auditor’s Recommendation: We recommend that the City implement a system to ensure the City to implement systems that ensures items needed to prepare the Schedule of Expenditure and Federal Awards be done in the closing process so that when the audit starts the Schedule of Expenditure and Federal Awards is ready to be audited and is complete. Agency’s Response: The City is currently in the process of hiring additional finance staff to address the grant(s) requests for reimbursements and collecting the necessary information for the preparation of the Schedule of Expenditures of Federal Awards. The corrective action plan for this will be implemented by year end 0224. The responsible party for this finding is the finance director.
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: During our procedures over the Schedule of Expenditures of Federal Awards we noted the City did not accurately complete a Schedule of Expenditures and Federal Awards for audit purposes. The Schedule of Expenditures and Federal Awards did not indicate if the programs were directly funded or if they were passed through by another entity. Criteria: OMB Uniform Guidance requires award identification to include, as applicable, the Federal Assistance Number and title, the award number and years, the name of the federal agency, and the name of any applicable pass-through entities. Cause: The City hasn’t had to create a Schedule of Federal Awards in prior years as they have just recently started receiving federal funding and so they were not familiar with the process. Effect: The City is in violation of the Uniform Guidance requirements. Auditor’s Recommendation: We recommend that the City implement a system to ensure the City to implement systems that ensures items needed to prepare the Schedule of Expenditure and Federal Awards be done in the closing process so that when the audit starts the Schedule of Expenditure and Federal Awards is ready to be audited and is complete. Agency’s Response: The City is currently in the process of hiring additional finance staff to address the grant(s) requests for reimbursements and collecting the necessary information for the preparation of the Schedule of Expenditures of Federal Awards. The corrective action plan for this will be implemented by year end 0224. The responsible party for this finding is the finance director.
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: During our procedures over the Schedule of Expenditures of Federal Awards we noted the City did not accurately complete a Schedule of Expenditures and Federal Awards for audit purposes. The Schedule of Expenditures and Federal Awards did not indicate if the programs were directly funded or if they were passed through by another entity. Criteria: OMB Uniform Guidance requires award identification to include, as applicable, the Federal Assistance Number and title, the award number and years, the name of the federal agency, and the name of any applicable pass-through entities. Cause: The City hasn’t had to create a Schedule of Federal Awards in prior years as they have just recently started receiving federal funding and so they were not familiar with the process. Effect: The City is in violation of the Uniform Guidance requirements. Auditor’s Recommendation: We recommend that the City implement a system to ensure the City to implement systems that ensures items needed to prepare the Schedule of Expenditure and Federal Awards be done in the closing process so that when the audit starts the Schedule of Expenditure and Federal Awards is ready to be audited and is complete. Agency’s Response: The City is currently in the process of hiring additional finance staff to address the grant(s) requests for reimbursements and collecting the necessary information for the preparation of the Schedule of Expenditures of Federal Awards. The corrective action plan for this will be implemented by year end 0224. The responsible party for this finding is the finance director.
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: During our procedures over the Schedule of Expenditures of Federal Awards we noted the City did not accurately complete a Schedule of Expenditures and Federal Awards for audit purposes. The Schedule of Expenditures and Federal Awards did not indicate if the programs were directly funded or if they were passed through by another entity. Criteria: OMB Uniform Guidance requires award identification to include, as applicable, the Federal Assistance Number and title, the award number and years, the name of the federal agency, and the name of any applicable pass-through entities. Cause: The City hasn’t had to create a Schedule of Federal Awards in prior years as they have just recently started receiving federal funding and so they were not familiar with the process. Effect: The City is in violation of the Uniform Guidance requirements. Auditor’s Recommendation: We recommend that the City implement a system to ensure the City to implement systems that ensures items needed to prepare the Schedule of Expenditure and Federal Awards be done in the closing process so that when the audit starts the Schedule of Expenditure and Federal Awards is ready to be audited and is complete. Agency’s Response: The City is currently in the process of hiring additional finance staff to address the grant(s) requests for reimbursements and collecting the necessary information for the preparation of the Schedule of Expenditures of Federal Awards. The corrective action plan for this will be implemented by year end 0224. The responsible party for this finding is the finance director.
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: The City’s fiscal year ended June 30, 2022, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period as required by 2 CFR Section 200.50(c). Criteria: The Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is immediately working to get current with the accounting processes that would enable the timely performance of the annual financial audit. The City is in the process of hiring more finance staff to ensure accounting data is captured accurately and timely. The corrective action plan will be implemented by year end 2024. The responsible party for this finding is the finance director. 151
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: The City’s fiscal year ended June 30, 2022, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period as required by 2 CFR Section 200.50(c). Criteria: The Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is immediately working to get current with the accounting processes that would enable the timely performance of the annual financial audit. The City is in the process of hiring more finance staff to ensure accounting data is captured accurately and timely. The corrective action plan will be implemented by year end 2024. The responsible party for this finding is the finance director. 151
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: The City’s fiscal year ended June 30, 2022, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period as required by 2 CFR Section 200.50(c). Criteria: The Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is immediately working to get current with the accounting processes that would enable the timely performance of the annual financial audit. The City is in the process of hiring more finance staff to ensure accounting data is captured accurately and timely. The corrective action plan will be implemented by year end 2024. The responsible party for this finding is the finance director. 151
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: The City’s fiscal year ended June 30, 2022, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period as required by 2 CFR Section 200.50(c). Criteria: The Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is immediately working to get current with the accounting processes that would enable the timely performance of the annual financial audit. The City is in the process of hiring more finance staff to ensure accounting data is captured accurately and timely. The corrective action plan will be implemented by year end 2024. The responsible party for this finding is the finance director. 151
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: The City’s fiscal year ended June 30, 2022, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period as required by 2 CFR Section 200.50(c). Criteria: The Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is immediately working to get current with the accounting processes that would enable the timely performance of the annual financial audit. The City is in the process of hiring more finance staff to ensure accounting data is captured accurately and timely. The corrective action plan will be implemented by year end 2024. The responsible party for this finding is the finance director. 151
Federal program information: Funding agency: All Programs Title: All Programs Federal Assistance Listing Number: All Programs Compliance Requirement Reporting Award Period: July 1, 2021 to June 30, 2022 Condition: The City’s fiscal year ended June 30, 2022, single audit reporting package was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period as required by 2 CFR Section 200.50(c). Criteria: The Uniform Guidance requires that the Single Audit reporting package be submitted within nine months after the end of the audit period. Effect: The City is not in compliance with reporting requirements of the Uniform Guidance. Questioned Costs: None Cause: The City experienced significant turnover during this fiscal year, and it resulted in both operations and closing of the previous fiscal year to be delayed which made everything late. Auditors’ Recommendation: We recommend that the City should work to catch up the closing process in order to ensure that the next year’s audit is performed timely in order for the next year’s audit reporting package to be submitted by the federal clearing house due date. Agency’s Response: The City is immediately working to get current with the accounting processes that would enable the timely performance of the annual financial audit. The City is in the process of hiring more finance staff to ensure accounting data is captured accurately and timely. The corrective action plan will be implemented by year end 2024. The responsible party for this finding is the finance director. 151