Audit 300697

FY End
2023-06-30
Total Expended
$20.24M
Findings
12
Programs
6
Organization: City of Palm Springs (CA)
Year: 2023 Accepted: 2024-03-29

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
389803 2023-002 Material Weakness Yes L
389804 2023-002 Material Weakness Yes L
389805 2023-002 Material Weakness Yes L
389806 2023-002 Material Weakness Yes L
389807 2023-002 Material Weakness Yes L
389808 2023-002 Material Weakness Yes L
966245 2023-002 Material Weakness Yes L
966246 2023-002 Material Weakness Yes L
966247 2023-002 Material Weakness Yes L
966248 2023-002 Material Weakness Yes L
966249 2023-002 Material Weakness Yes L
966250 2023-002 Material Weakness Yes L

Contacts

Name Title Type
M81QLC23JVX5 Kristopher J. Mooney Auditee
7603228324 Frances J. Kuo Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Reporting Entity Accounting Policies: Funds received under the various grant programs have been recorded within the General Fund, special revenue funds and enterprise fund of the City. The City utilizes the modified accrual basis of accounting for the General Fund and special revenue funds and the accrual basis of accounting for the enterprise funds. The accompanying schedule of Expenditures of Federal Awards (the Schedule) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of the City's basic financial statements. The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through the State of California Transportation Department are included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the City. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The financial reporting entity, as defined by the Governmental Accounting Standards Board (“GASB”) Codification, consists of the primary government, which is the City of Palm Springs, California (the “City”), organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the City’s financial statements to be misleading or incomplete.

Finding Details

Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grants/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-19-MC06-0561, B-20-MC06-0561, B-22-MC06-0561 Assistance Listing Number: 20.106 Assistance Listing Title: Airport Improvement Program Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: 3-06-0181-060-2021, 3-06-0181-061-2021, 3-06-0181-062-2021, 3-06-0181-063-2022 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): PR29, Cash on Hand Quarterly Reports – PR29 in the Integrated Disbursement and Information System (IDIS) reports the financial status of the grants and cooperative agreement funds and cash transactions using those funds. These reports are required to be submitted to HUD on a quarterly basis, 30 days after the reporting period end date. The due dates of each quarterly report is noted below: SF-425 (OMB No. 0348-0061), Federal Financial Report (FFR) – Recipients use the FFR as a standardized format to report expenditures under federal awards, as well as, when applicable, cash status (Lines 10.a, 10.b, and 10c). References to this report include its applicability as both an expenditure and a cash status report unless otherwise indicated. Until the grant is completed and closed, this is report is required to be submitted annually, due 90 days after the end of each federal fiscal year in which the grant is open which is December 31. Condition: During the audit, we noticed that three out of four quarters of PR29 for CDBG and one out of four quarters of PR29 for CDBG-CV were not filed within the deadline and noted below: Additionally, we noticed that the following SF-45 were not filed timely: Cause: The City does not have policies and procedures to ensure that the City understands the requirements of the grants. There was a miscommunication between the City Staff and the Consultant, resulting in the delay of the reports submission of the CDBG and CDBG-CV. Furthermore, the City was unaware that the submission of SF-425 was necessary until the grant was completed and closed, irrespective of whether grant funds were utilized or not. Effect or Potential Effect: The City was not in compliance with the programs’ reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: 2022-001. Recommendation: We recommended the City improve its communication and monitoring controls to ensure all required reports are prepared and submitted timely. Furthermore, we recommend the City to review and update internal policies and procedures to ensure awareness of federal grant reporting requirements and ensure timely compliance with reporting obligations throughout the grant lifecycle. Views of Responsible Officials: Management concurs with the finding.
Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grants/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-19-MC06-0561, B-20-MC06-0561, B-22-MC06-0561 Assistance Listing Number: 20.106 Assistance Listing Title: Airport Improvement Program Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: 3-06-0181-060-2021, 3-06-0181-061-2021, 3-06-0181-062-2021, 3-06-0181-063-2022 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): PR29, Cash on Hand Quarterly Reports – PR29 in the Integrated Disbursement and Information System (IDIS) reports the financial status of the grants and cooperative agreement funds and cash transactions using those funds. These reports are required to be submitted to HUD on a quarterly basis, 30 days after the reporting period end date. The due dates of each quarterly report is noted below: SF-425 (OMB No. 0348-0061), Federal Financial Report (FFR) – Recipients use the FFR as a standardized format to report expenditures under federal awards, as well as, when applicable, cash status (Lines 10.a, 10.b, and 10c). References to this report include its applicability as both an expenditure and a cash status report unless otherwise indicated. Until the grant is completed and closed, this is report is required to be submitted annually, due 90 days after the end of each federal fiscal year in which the grant is open which is December 31. Condition: During the audit, we noticed that three out of four quarters of PR29 for CDBG and one out of four quarters of PR29 for CDBG-CV were not filed within the deadline and noted below: Additionally, we noticed that the following SF-45 were not filed timely: Cause: The City does not have policies and procedures to ensure that the City understands the requirements of the grants. There was a miscommunication between the City Staff and the Consultant, resulting in the delay of the reports submission of the CDBG and CDBG-CV. Furthermore, the City was unaware that the submission of SF-425 was necessary until the grant was completed and closed, irrespective of whether grant funds were utilized or not. Effect or Potential Effect: The City was not in compliance with the programs’ reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: 2022-001. Recommendation: We recommended the City improve its communication and monitoring controls to ensure all required reports are prepared and submitted timely. Furthermore, we recommend the City to review and update internal policies and procedures to ensure awareness of federal grant reporting requirements and ensure timely compliance with reporting obligations throughout the grant lifecycle. Views of Responsible Officials: Management concurs with the finding.
Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grants/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-19-MC06-0561, B-20-MC06-0561, B-22-MC06-0561 Assistance Listing Number: 20.106 Assistance Listing Title: Airport Improvement Program Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: 3-06-0181-060-2021, 3-06-0181-061-2021, 3-06-0181-062-2021, 3-06-0181-063-2022 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): PR29, Cash on Hand Quarterly Reports – PR29 in the Integrated Disbursement and Information System (IDIS) reports the financial status of the grants and cooperative agreement funds and cash transactions using those funds. These reports are required to be submitted to HUD on a quarterly basis, 30 days after the reporting period end date. The due dates of each quarterly report is noted below: SF-425 (OMB No. 0348-0061), Federal Financial Report (FFR) – Recipients use the FFR as a standardized format to report expenditures under federal awards, as well as, when applicable, cash status (Lines 10.a, 10.b, and 10c). References to this report include its applicability as both an expenditure and a cash status report unless otherwise indicated. Until the grant is completed and closed, this is report is required to be submitted annually, due 90 days after the end of each federal fiscal year in which the grant is open which is December 31. Condition: During the audit, we noticed that three out of four quarters of PR29 for CDBG and one out of four quarters of PR29 for CDBG-CV were not filed within the deadline and noted below: Additionally, we noticed that the following SF-45 were not filed timely: Cause: The City does not have policies and procedures to ensure that the City understands the requirements of the grants. There was a miscommunication between the City Staff and the Consultant, resulting in the delay of the reports submission of the CDBG and CDBG-CV. Furthermore, the City was unaware that the submission of SF-425 was necessary until the grant was completed and closed, irrespective of whether grant funds were utilized or not. Effect or Potential Effect: The City was not in compliance with the programs’ reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: 2022-001. Recommendation: We recommended the City improve its communication and monitoring controls to ensure all required reports are prepared and submitted timely. Furthermore, we recommend the City to review and update internal policies and procedures to ensure awareness of federal grant reporting requirements and ensure timely compliance with reporting obligations throughout the grant lifecycle. Views of Responsible Officials: Management concurs with the finding.
Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grants/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-19-MC06-0561, B-20-MC06-0561, B-22-MC06-0561 Assistance Listing Number: 20.106 Assistance Listing Title: Airport Improvement Program Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: 3-06-0181-060-2021, 3-06-0181-061-2021, 3-06-0181-062-2021, 3-06-0181-063-2022 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): PR29, Cash on Hand Quarterly Reports – PR29 in the Integrated Disbursement and Information System (IDIS) reports the financial status of the grants and cooperative agreement funds and cash transactions using those funds. These reports are required to be submitted to HUD on a quarterly basis, 30 days after the reporting period end date. The due dates of each quarterly report is noted below: SF-425 (OMB No. 0348-0061), Federal Financial Report (FFR) – Recipients use the FFR as a standardized format to report expenditures under federal awards, as well as, when applicable, cash status (Lines 10.a, 10.b, and 10c). References to this report include its applicability as both an expenditure and a cash status report unless otherwise indicated. Until the grant is completed and closed, this is report is required to be submitted annually, due 90 days after the end of each federal fiscal year in which the grant is open which is December 31. Condition: During the audit, we noticed that three out of four quarters of PR29 for CDBG and one out of four quarters of PR29 for CDBG-CV were not filed within the deadline and noted below: Additionally, we noticed that the following SF-45 were not filed timely: Cause: The City does not have policies and procedures to ensure that the City understands the requirements of the grants. There was a miscommunication between the City Staff and the Consultant, resulting in the delay of the reports submission of the CDBG and CDBG-CV. Furthermore, the City was unaware that the submission of SF-425 was necessary until the grant was completed and closed, irrespective of whether grant funds were utilized or not. Effect or Potential Effect: The City was not in compliance with the programs’ reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: 2022-001. Recommendation: We recommended the City improve its communication and monitoring controls to ensure all required reports are prepared and submitted timely. Furthermore, we recommend the City to review and update internal policies and procedures to ensure awareness of federal grant reporting requirements and ensure timely compliance with reporting obligations throughout the grant lifecycle. Views of Responsible Officials: Management concurs with the finding.
Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grants/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-19-MC06-0561, B-20-MC06-0561, B-22-MC06-0561 Assistance Listing Number: 20.106 Assistance Listing Title: Airport Improvement Program Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: 3-06-0181-060-2021, 3-06-0181-061-2021, 3-06-0181-062-2021, 3-06-0181-063-2022 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): PR29, Cash on Hand Quarterly Reports – PR29 in the Integrated Disbursement and Information System (IDIS) reports the financial status of the grants and cooperative agreement funds and cash transactions using those funds. These reports are required to be submitted to HUD on a quarterly basis, 30 days after the reporting period end date. The due dates of each quarterly report is noted below: SF-425 (OMB No. 0348-0061), Federal Financial Report (FFR) – Recipients use the FFR as a standardized format to report expenditures under federal awards, as well as, when applicable, cash status (Lines 10.a, 10.b, and 10c). References to this report include its applicability as both an expenditure and a cash status report unless otherwise indicated. Until the grant is completed and closed, this is report is required to be submitted annually, due 90 days after the end of each federal fiscal year in which the grant is open which is December 31. Condition: During the audit, we noticed that three out of four quarters of PR29 for CDBG and one out of four quarters of PR29 for CDBG-CV were not filed within the deadline and noted below: Additionally, we noticed that the following SF-45 were not filed timely: Cause: The City does not have policies and procedures to ensure that the City understands the requirements of the grants. There was a miscommunication between the City Staff and the Consultant, resulting in the delay of the reports submission of the CDBG and CDBG-CV. Furthermore, the City was unaware that the submission of SF-425 was necessary until the grant was completed and closed, irrespective of whether grant funds were utilized or not. Effect or Potential Effect: The City was not in compliance with the programs’ reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: 2022-001. Recommendation: We recommended the City improve its communication and monitoring controls to ensure all required reports are prepared and submitted timely. Furthermore, we recommend the City to review and update internal policies and procedures to ensure awareness of federal grant reporting requirements and ensure timely compliance with reporting obligations throughout the grant lifecycle. Views of Responsible Officials: Management concurs with the finding.
Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grants/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-19-MC06-0561, B-20-MC06-0561, B-22-MC06-0561 Assistance Listing Number: 20.106 Assistance Listing Title: Airport Improvement Program Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: 3-06-0181-060-2021, 3-06-0181-061-2021, 3-06-0181-062-2021, 3-06-0181-063-2022 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): PR29, Cash on Hand Quarterly Reports – PR29 in the Integrated Disbursement and Information System (IDIS) reports the financial status of the grants and cooperative agreement funds and cash transactions using those funds. These reports are required to be submitted to HUD on a quarterly basis, 30 days after the reporting period end date. The due dates of each quarterly report is noted below: SF-425 (OMB No. 0348-0061), Federal Financial Report (FFR) – Recipients use the FFR as a standardized format to report expenditures under federal awards, as well as, when applicable, cash status (Lines 10.a, 10.b, and 10c). References to this report include its applicability as both an expenditure and a cash status report unless otherwise indicated. Until the grant is completed and closed, this is report is required to be submitted annually, due 90 days after the end of each federal fiscal year in which the grant is open which is December 31. Condition: During the audit, we noticed that three out of four quarters of PR29 for CDBG and one out of four quarters of PR29 for CDBG-CV were not filed within the deadline and noted below: Additionally, we noticed that the following SF-45 were not filed timely: Cause: The City does not have policies and procedures to ensure that the City understands the requirements of the grants. There was a miscommunication between the City Staff and the Consultant, resulting in the delay of the reports submission of the CDBG and CDBG-CV. Furthermore, the City was unaware that the submission of SF-425 was necessary until the grant was completed and closed, irrespective of whether grant funds were utilized or not. Effect or Potential Effect: The City was not in compliance with the programs’ reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: 2022-001. Recommendation: We recommended the City improve its communication and monitoring controls to ensure all required reports are prepared and submitted timely. Furthermore, we recommend the City to review and update internal policies and procedures to ensure awareness of federal grant reporting requirements and ensure timely compliance with reporting obligations throughout the grant lifecycle. Views of Responsible Officials: Management concurs with the finding.
Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grants/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-19-MC06-0561, B-20-MC06-0561, B-22-MC06-0561 Assistance Listing Number: 20.106 Assistance Listing Title: Airport Improvement Program Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: 3-06-0181-060-2021, 3-06-0181-061-2021, 3-06-0181-062-2021, 3-06-0181-063-2022 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): PR29, Cash on Hand Quarterly Reports – PR29 in the Integrated Disbursement and Information System (IDIS) reports the financial status of the grants and cooperative agreement funds and cash transactions using those funds. These reports are required to be submitted to HUD on a quarterly basis, 30 days after the reporting period end date. The due dates of each quarterly report is noted below: SF-425 (OMB No. 0348-0061), Federal Financial Report (FFR) – Recipients use the FFR as a standardized format to report expenditures under federal awards, as well as, when applicable, cash status (Lines 10.a, 10.b, and 10c). References to this report include its applicability as both an expenditure and a cash status report unless otherwise indicated. Until the grant is completed and closed, this is report is required to be submitted annually, due 90 days after the end of each federal fiscal year in which the grant is open which is December 31. Condition: During the audit, we noticed that three out of four quarters of PR29 for CDBG and one out of four quarters of PR29 for CDBG-CV were not filed within the deadline and noted below: Additionally, we noticed that the following SF-45 were not filed timely: Cause: The City does not have policies and procedures to ensure that the City understands the requirements of the grants. There was a miscommunication between the City Staff and the Consultant, resulting in the delay of the reports submission of the CDBG and CDBG-CV. Furthermore, the City was unaware that the submission of SF-425 was necessary until the grant was completed and closed, irrespective of whether grant funds were utilized or not. Effect or Potential Effect: The City was not in compliance with the programs’ reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: 2022-001. Recommendation: We recommended the City improve its communication and monitoring controls to ensure all required reports are prepared and submitted timely. Furthermore, we recommend the City to review and update internal policies and procedures to ensure awareness of federal grant reporting requirements and ensure timely compliance with reporting obligations throughout the grant lifecycle. Views of Responsible Officials: Management concurs with the finding.
Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grants/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-19-MC06-0561, B-20-MC06-0561, B-22-MC06-0561 Assistance Listing Number: 20.106 Assistance Listing Title: Airport Improvement Program Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: 3-06-0181-060-2021, 3-06-0181-061-2021, 3-06-0181-062-2021, 3-06-0181-063-2022 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): PR29, Cash on Hand Quarterly Reports – PR29 in the Integrated Disbursement and Information System (IDIS) reports the financial status of the grants and cooperative agreement funds and cash transactions using those funds. These reports are required to be submitted to HUD on a quarterly basis, 30 days after the reporting period end date. The due dates of each quarterly report is noted below: SF-425 (OMB No. 0348-0061), Federal Financial Report (FFR) – Recipients use the FFR as a standardized format to report expenditures under federal awards, as well as, when applicable, cash status (Lines 10.a, 10.b, and 10c). References to this report include its applicability as both an expenditure and a cash status report unless otherwise indicated. Until the grant is completed and closed, this is report is required to be submitted annually, due 90 days after the end of each federal fiscal year in which the grant is open which is December 31. Condition: During the audit, we noticed that three out of four quarters of PR29 for CDBG and one out of four quarters of PR29 for CDBG-CV were not filed within the deadline and noted below: Additionally, we noticed that the following SF-45 were not filed timely: Cause: The City does not have policies and procedures to ensure that the City understands the requirements of the grants. There was a miscommunication between the City Staff and the Consultant, resulting in the delay of the reports submission of the CDBG and CDBG-CV. Furthermore, the City was unaware that the submission of SF-425 was necessary until the grant was completed and closed, irrespective of whether grant funds were utilized or not. Effect or Potential Effect: The City was not in compliance with the programs’ reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: 2022-001. Recommendation: We recommended the City improve its communication and monitoring controls to ensure all required reports are prepared and submitted timely. Furthermore, we recommend the City to review and update internal policies and procedures to ensure awareness of federal grant reporting requirements and ensure timely compliance with reporting obligations throughout the grant lifecycle. Views of Responsible Officials: Management concurs with the finding.
Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grants/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-19-MC06-0561, B-20-MC06-0561, B-22-MC06-0561 Assistance Listing Number: 20.106 Assistance Listing Title: Airport Improvement Program Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: 3-06-0181-060-2021, 3-06-0181-061-2021, 3-06-0181-062-2021, 3-06-0181-063-2022 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): PR29, Cash on Hand Quarterly Reports – PR29 in the Integrated Disbursement and Information System (IDIS) reports the financial status of the grants and cooperative agreement funds and cash transactions using those funds. These reports are required to be submitted to HUD on a quarterly basis, 30 days after the reporting period end date. The due dates of each quarterly report is noted below: SF-425 (OMB No. 0348-0061), Federal Financial Report (FFR) – Recipients use the FFR as a standardized format to report expenditures under federal awards, as well as, when applicable, cash status (Lines 10.a, 10.b, and 10c). References to this report include its applicability as both an expenditure and a cash status report unless otherwise indicated. Until the grant is completed and closed, this is report is required to be submitted annually, due 90 days after the end of each federal fiscal year in which the grant is open which is December 31. Condition: During the audit, we noticed that three out of four quarters of PR29 for CDBG and one out of four quarters of PR29 for CDBG-CV were not filed within the deadline and noted below: Additionally, we noticed that the following SF-45 were not filed timely: Cause: The City does not have policies and procedures to ensure that the City understands the requirements of the grants. There was a miscommunication between the City Staff and the Consultant, resulting in the delay of the reports submission of the CDBG and CDBG-CV. Furthermore, the City was unaware that the submission of SF-425 was necessary until the grant was completed and closed, irrespective of whether grant funds were utilized or not. Effect or Potential Effect: The City was not in compliance with the programs’ reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: 2022-001. Recommendation: We recommended the City improve its communication and monitoring controls to ensure all required reports are prepared and submitted timely. Furthermore, we recommend the City to review and update internal policies and procedures to ensure awareness of federal grant reporting requirements and ensure timely compliance with reporting obligations throughout the grant lifecycle. Views of Responsible Officials: Management concurs with the finding.
Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grants/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-19-MC06-0561, B-20-MC06-0561, B-22-MC06-0561 Assistance Listing Number: 20.106 Assistance Listing Title: Airport Improvement Program Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: 3-06-0181-060-2021, 3-06-0181-061-2021, 3-06-0181-062-2021, 3-06-0181-063-2022 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): PR29, Cash on Hand Quarterly Reports – PR29 in the Integrated Disbursement and Information System (IDIS) reports the financial status of the grants and cooperative agreement funds and cash transactions using those funds. These reports are required to be submitted to HUD on a quarterly basis, 30 days after the reporting period end date. The due dates of each quarterly report is noted below: SF-425 (OMB No. 0348-0061), Federal Financial Report (FFR) – Recipients use the FFR as a standardized format to report expenditures under federal awards, as well as, when applicable, cash status (Lines 10.a, 10.b, and 10c). References to this report include its applicability as both an expenditure and a cash status report unless otherwise indicated. Until the grant is completed and closed, this is report is required to be submitted annually, due 90 days after the end of each federal fiscal year in which the grant is open which is December 31. Condition: During the audit, we noticed that three out of four quarters of PR29 for CDBG and one out of four quarters of PR29 for CDBG-CV were not filed within the deadline and noted below: Additionally, we noticed that the following SF-45 were not filed timely: Cause: The City does not have policies and procedures to ensure that the City understands the requirements of the grants. There was a miscommunication between the City Staff and the Consultant, resulting in the delay of the reports submission of the CDBG and CDBG-CV. Furthermore, the City was unaware that the submission of SF-425 was necessary until the grant was completed and closed, irrespective of whether grant funds were utilized or not. Effect or Potential Effect: The City was not in compliance with the programs’ reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: 2022-001. Recommendation: We recommended the City improve its communication and monitoring controls to ensure all required reports are prepared and submitted timely. Furthermore, we recommend the City to review and update internal policies and procedures to ensure awareness of federal grant reporting requirements and ensure timely compliance with reporting obligations throughout the grant lifecycle. Views of Responsible Officials: Management concurs with the finding.
Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grants/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-19-MC06-0561, B-20-MC06-0561, B-22-MC06-0561 Assistance Listing Number: 20.106 Assistance Listing Title: Airport Improvement Program Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: 3-06-0181-060-2021, 3-06-0181-061-2021, 3-06-0181-062-2021, 3-06-0181-063-2022 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): PR29, Cash on Hand Quarterly Reports – PR29 in the Integrated Disbursement and Information System (IDIS) reports the financial status of the grants and cooperative agreement funds and cash transactions using those funds. These reports are required to be submitted to HUD on a quarterly basis, 30 days after the reporting period end date. The due dates of each quarterly report is noted below: SF-425 (OMB No. 0348-0061), Federal Financial Report (FFR) – Recipients use the FFR as a standardized format to report expenditures under federal awards, as well as, when applicable, cash status (Lines 10.a, 10.b, and 10c). References to this report include its applicability as both an expenditure and a cash status report unless otherwise indicated. Until the grant is completed and closed, this is report is required to be submitted annually, due 90 days after the end of each federal fiscal year in which the grant is open which is December 31. Condition: During the audit, we noticed that three out of four quarters of PR29 for CDBG and one out of four quarters of PR29 for CDBG-CV were not filed within the deadline and noted below: Additionally, we noticed that the following SF-45 were not filed timely: Cause: The City does not have policies and procedures to ensure that the City understands the requirements of the grants. There was a miscommunication between the City Staff and the Consultant, resulting in the delay of the reports submission of the CDBG and CDBG-CV. Furthermore, the City was unaware that the submission of SF-425 was necessary until the grant was completed and closed, irrespective of whether grant funds were utilized or not. Effect or Potential Effect: The City was not in compliance with the programs’ reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: 2022-001. Recommendation: We recommended the City improve its communication and monitoring controls to ensure all required reports are prepared and submitted timely. Furthermore, we recommend the City to review and update internal policies and procedures to ensure awareness of federal grant reporting requirements and ensure timely compliance with reporting obligations throughout the grant lifecycle. Views of Responsible Officials: Management concurs with the finding.
Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grants/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-19-MC06-0561, B-20-MC06-0561, B-22-MC06-0561 Assistance Listing Number: 20.106 Assistance Listing Title: Airport Improvement Program Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: 3-06-0181-060-2021, 3-06-0181-061-2021, 3-06-0181-062-2021, 3-06-0181-063-2022 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): PR29, Cash on Hand Quarterly Reports – PR29 in the Integrated Disbursement and Information System (IDIS) reports the financial status of the grants and cooperative agreement funds and cash transactions using those funds. These reports are required to be submitted to HUD on a quarterly basis, 30 days after the reporting period end date. The due dates of each quarterly report is noted below: SF-425 (OMB No. 0348-0061), Federal Financial Report (FFR) – Recipients use the FFR as a standardized format to report expenditures under federal awards, as well as, when applicable, cash status (Lines 10.a, 10.b, and 10c). References to this report include its applicability as both an expenditure and a cash status report unless otherwise indicated. Until the grant is completed and closed, this is report is required to be submitted annually, due 90 days after the end of each federal fiscal year in which the grant is open which is December 31. Condition: During the audit, we noticed that three out of four quarters of PR29 for CDBG and one out of four quarters of PR29 for CDBG-CV were not filed within the deadline and noted below: Additionally, we noticed that the following SF-45 were not filed timely: Cause: The City does not have policies and procedures to ensure that the City understands the requirements of the grants. There was a miscommunication between the City Staff and the Consultant, resulting in the delay of the reports submission of the CDBG and CDBG-CV. Furthermore, the City was unaware that the submission of SF-425 was necessary until the grant was completed and closed, irrespective of whether grant funds were utilized or not. Effect or Potential Effect: The City was not in compliance with the programs’ reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: 2022-001. Recommendation: We recommended the City improve its communication and monitoring controls to ensure all required reports are prepared and submitted timely. Furthermore, we recommend the City to review and update internal policies and procedures to ensure awareness of federal grant reporting requirements and ensure timely compliance with reporting obligations throughout the grant lifecycle. Views of Responsible Officials: Management concurs with the finding.