FAC Explorer

Audit 302116

FY End
2023-06-30
Total Expended
$16.31M
Findings
6
Programs
20
Organization: City of San Bernardino (CA)
Year: 2023 Accepted: 2024-04-01
Auditor: Rogers Anderson Malody & Scott LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
391712 2023-001 Significant Deficiency Yes M
391713 2023-002 Significant Deficiency - M
391714 2023-003 Significant Deficiency - M
968154 2023-001 Significant Deficiency Yes M
968155 2023-002 Significant Deficiency - M
968156 2023-003 Significant Deficiency - M

Programs

ALN Program Spent Major Findings
21.023 Emergency Rental Assistance Program $5.07M Yes 1
16.710 Public Safety Partnership and Community Policing Grants $3.18M - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.34M Yes 1
14.218 Community Development Block Grants/entitlement Grants $2.30M Yes 1
14.231 Emergency Solutions Grant Program $854,829 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $632,422 - 0
14.239 Home Investment Partnerships Program $328,524 - 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $298,244 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $242,434 - 0
16.609 Project Safe Neighborhoods $222,622 - 0
20.600 State and Community Highway Safety $181,688 - 0
94.016 Senior Companion Program $140,376 - 0
84.002A Adult Education and Family Act $113,872 - 0
16.922 Equitable Sharing Program $107,811 - 0
97.067 Homeland Security Grant Program $107,464 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $70,173 - 0
94.002 Retired and Senior Volunteer Program $53,381 - 0
97.042 Emergency Management Performance Grants $31,299 - 0
93.053 Nutrition Services Incentive Program $25,558 - 0
14.264 Neigborhood Stabilization Program $734 - 0

Contacts

Name Title Type
EJLMHR1CMKM7 Jeannie Fortune Auditee
9093845345 Brianna Schultz Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Reporting EntityThe financial reporting entity consists of the primary government, City of San Bernardino (theCity), organizations for which the primary government is financially accountable, and otherorganizations for which the nature and significance of their relationship with the primarygovernment are such that exclusion would cause the reporting entitys financial statements to bemisleading or incomplete. For the purposes of the Schedule of Expenditures of Federal Awards(SEFA), the reporting entity consists of all City departments except the water department, whichhas a separate independent single audit.The City Council acts as the governing body and is able to impose its will on the followingorganizations, establishing financial accountability. Basis of Accounting Funds received under the various grant programs have been recorded within the General Fundand special revenue funds of the City. The City utilizes the modified accrual method of accountingfor the General Fund and special revenue funds. The accompanying Schedule of Expendituresof Federal Awards (Schedule) is presented in accordance with the requirements of Tile 2 U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amountspresented in the schedule may differ from amounts presented in, or used in, the preparation ofthe Citys basic financial statements.Schedule of Expenditures of Federal AwardsThe accompanying Schedule presents the activity of all federal assistance programs of the City except those programs of the Citys Water Department, which are not included in the CitysSchedule of Expenditures of Federal Awards but are reported in an independent single audit bya separate auditing firm. Federal financial assistance received directly from federal agencies aswell as federal financial assistance passed through the State of California and the County of SanBernardino, is not included in the Schedule. The Schedule was prepared from only the accountsof various grant programs and, therefore, does not present the financial position, change in fundbalance, or results of operations of the City. De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance The accompanying Schedule presents the activity of all federal assistance programs of the City except those programs of the City’s Water Department, which are not included in the City’s Schedule of Expenditures of Federal Awards but are reported in an independent single audit by a separate auditing firm. Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through the State of California and the County of San Bernardino, is not included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position, change in fund balance, or results of operations of the City.

Finding Details

Finding 2023-001
Federal Program CDBG-Entitlement Grants Cluster, AL 14.218 Criteria The requirements of 2CFRPart170 Appendix A states that direct recipients of grants or cooperative agreements are required to report first-tier subawards of $50,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Report System (FSRS) by the end of the following month in which the direct recipient awards such subawards. Part 3 of the compliance supplement requires this reporting at the $30,000. Condition During the audit, we noted reporting of subaward information to FSRS was not performed within the required timeframe. Cause The City did not have controls in place to ensure FSRS reporting was completed in the required timeframe. Identification as a Repeat Finding This is a repeat finding. Listed as 2022-001 in prior year single audit report. Effect The City could jeopardize future grant funding due to program noncompliance. Questioned Costs None. Context/Sampling A nonstatistical sample of two subrecipient agreements entered within the fiscal year under audit were selected to review FSRS submissions. This accounted for $77,454 of federal expenditures. Recommendation We recommend the City implement a tracking system to remind staff of the various reports due and respective deadlines. Management’s Response See Corrective Action Plan.
Finding 2023-002
Federal Program Emergency Rental Assistance Program, AL 21.023 Criteria Per 2CFR200.332, the City is to monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Condition During the audit, we noted the most recent subrecipient monitoring procedures were performed from August 2022 through January 2023 over payments made to recipients from July 2021 through August 2022. Only two payments included in the monitoring sample were within fiscal year 2023. Because the first advance to the subrecipient for fiscal year was made in July 2022, we were unable to determine that the two payments are a result of the City's fiscal year 2023 expenditures. No monitoring procedures were performed over the remainder of the months in the fiscal year, therefore resulting in discrepancies in the submitted quarterly reporting. Cause The City did not have controls in place to subrecipient monitoring was performed in a timely manner. Identification as a Repeat Finding This is not a repeat finding Effect The City could jeopardize future grant funding due to program noncompliance. Questioned Costs None. Context/Sampling The most recent subrecipient monitoring performed was selected to review. This accounted for $5,057,447 of federal expenditures. Recommendation We recommend the City implement a tracking system to remind staff to perform monitoring procedures in a timely manner. Management’s Response See Corrective Action Plan.
Finding 2023-003
Federal Program American Rescue Plan Act, AL 21.027 Criteria The requirements of 2CFR 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 2CFR Part 200, Subpart F (Uniform Guidance). Condition During the audit, we noted the agreement with subrecipient did not include the items noted in the criteria above. Cause The City did not have controls in place to ensure the required information was included in the subrecipient agreement. Identification as a Repeat Finding This is not a repeat finding. Effect The City could jeopardize future grant funding due to program noncompliance and subrecipients could be unaware of the required compliance requirements. Questioned Costs None. Context/Sampling The only new subrecipient agreement entered for the fiscal year under audit was selected for review. There were no federal expenditures related to the agreement for the period under audit as the agreement was entered into in June 2023. Recommendation We recommend the City review 2CFR200 to ensure information required in subrecipient agreements is properly included. Management’s Response See Corrective Action Plan.
Finding 2023-001
Federal Program CDBG-Entitlement Grants Cluster, AL 14.218 Criteria The requirements of 2CFRPart170 Appendix A states that direct recipients of grants or cooperative agreements are required to report first-tier subawards of $50,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Report System (FSRS) by the end of the following month in which the direct recipient awards such subawards. Part 3 of the compliance supplement requires this reporting at the $30,000. Condition During the audit, we noted reporting of subaward information to FSRS was not performed within the required timeframe. Cause The City did not have controls in place to ensure FSRS reporting was completed in the required timeframe. Identification as a Repeat Finding This is a repeat finding. Listed as 2022-001 in prior year single audit report. Effect The City could jeopardize future grant funding due to program noncompliance. Questioned Costs None. Context/Sampling A nonstatistical sample of two subrecipient agreements entered within the fiscal year under audit were selected to review FSRS submissions. This accounted for $77,454 of federal expenditures. Recommendation We recommend the City implement a tracking system to remind staff of the various reports due and respective deadlines. Management’s Response See Corrective Action Plan.
Finding 2023-002
Federal Program Emergency Rental Assistance Program, AL 21.023 Criteria Per 2CFR200.332, the City is to monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Condition During the audit, we noted the most recent subrecipient monitoring procedures were performed from August 2022 through January 2023 over payments made to recipients from July 2021 through August 2022. Only two payments included in the monitoring sample were within fiscal year 2023. Because the first advance to the subrecipient for fiscal year was made in July 2022, we were unable to determine that the two payments are a result of the City's fiscal year 2023 expenditures. No monitoring procedures were performed over the remainder of the months in the fiscal year, therefore resulting in discrepancies in the submitted quarterly reporting. Cause The City did not have controls in place to subrecipient monitoring was performed in a timely manner. Identification as a Repeat Finding This is not a repeat finding Effect The City could jeopardize future grant funding due to program noncompliance. Questioned Costs None. Context/Sampling The most recent subrecipient monitoring performed was selected to review. This accounted for $5,057,447 of federal expenditures. Recommendation We recommend the City implement a tracking system to remind staff to perform monitoring procedures in a timely manner. Management’s Response See Corrective Action Plan.
Finding 2023-003
Federal Program American Rescue Plan Act, AL 21.027 Criteria The requirements of 2CFR 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 2CFR Part 200, Subpart F (Uniform Guidance). Condition During the audit, we noted the agreement with subrecipient did not include the items noted in the criteria above. Cause The City did not have controls in place to ensure the required information was included in the subrecipient agreement. Identification as a Repeat Finding This is not a repeat finding. Effect The City could jeopardize future grant funding due to program noncompliance and subrecipients could be unaware of the required compliance requirements. Questioned Costs None. Context/Sampling The only new subrecipient agreement entered for the fiscal year under audit was selected for review. There were no federal expenditures related to the agreement for the period under audit as the agreement was entered into in June 2023. Recommendation We recommend the City review 2CFR200 to ensure information required in subrecipient agreements is properly included. Management’s Response See Corrective Action Plan.