FAC Explorer

Audit 303215

FY End
2023-06-30
Total Expended
$2.28M
Findings
4
Programs
8
Organization: City of Monterey (CA)
Year: 2023 Accepted: 2024-04-10
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
392936 2023-002 Material Weakness Yes L
392937 2023-002 Material Weakness Yes L
969378 2023-002 Material Weakness Yes L
969379 2023-002 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
14.218 Community Development Block Grants/entitlement Grants $994,296 Yes 1
12.610 Community Economic Adjustment Assistance for Compatible Use and Joint Land Use Studies $614,259 - 0
97.044 Assistance to Firefighters Grant $350,849 - 0
20.600 State and Community Highway Safety $34,831 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $34,529 - 0
16.036 Prosecuting Cold Cases Using Dna $8,637 - 0
84.033 Federal Work-Study Program $4,396 - 0
16.607 Bulletproof Vest Partnership Program $571 - 0

Contacts

Name Title Type
TJNLQ7M39K51 Rafaela King Auditee
8316463940 Ahmad Gharaibeh Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Expenditures reported in the schedule are reported on the modified and full accrual basis of accounting, depending on which fund the federal expenditures were incurred except for subrecipient expenditures, which are recorded on the cash basis. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The City does not draw for indirect administrative expenses and has not elected to use the 10% de minimus cost rate.

Finding Details

Finding 2023-002
2023-002 Program: Community Development Block Grants / Entitlement Grants Federal Financial Assistance Listing Number: 14.218 Grant Identification Number: B-22-MC-06-0004 and related program income Federal Grantor: U.S. Department of Housing and Urban Development Passthrough Entity: State Department of Housing and Community Development Compliance Requirements: Reporting Type of Finding: Material Weakness in the Internal Control over Compliance and Material Noncompliance Repeat finding: Yes Criteria: 2 CFR 200.329(b) requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with program requirements. The City must submit Quarterly Reports that contains the cash available on hand that is supported by actual amounts reported in the financial statements. Condition: Cash on hand information was reported inaccurately. Cause: The City’s control did not ensure the Cash on Hand Report was prepared in accordance with federal requirements and the review process at the City did not capture the information needed to ensure that the reports were accurate. Effect: Inaccurate information was reported to the federal awarding agency. Questioned Costs: None. Context/Sampling: All four quarters of the program did not report the correct cash amount on hand. Repeat Findings from Prior Years: No. Recommendation: We recommend that the City follows its comprehensive policies and procedures ensuring that the quarterly reports are reviewed timely before they are submitted to the federal agencies. Views of Responsible Officials: See separately issued Corrective Action Plan.
Finding 2023-002
2023-002 Program: Community Development Block Grants / Entitlement Grants Federal Financial Assistance Listing Number: 14.218 Grant Identification Number: B-22-MC-06-0004 and related program income Federal Grantor: U.S. Department of Housing and Urban Development Passthrough Entity: State Department of Housing and Community Development Compliance Requirements: Reporting Type of Finding: Material Weakness in the Internal Control over Compliance and Material Noncompliance Repeat finding: Yes Criteria: 2 CFR 200.329(b) requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with program requirements. The City must submit Quarterly Reports that contains the cash available on hand that is supported by actual amounts reported in the financial statements. Condition: Cash on hand information was reported inaccurately. Cause: The City’s control did not ensure the Cash on Hand Report was prepared in accordance with federal requirements and the review process at the City did not capture the information needed to ensure that the reports were accurate. Effect: Inaccurate information was reported to the federal awarding agency. Questioned Costs: None. Context/Sampling: All four quarters of the program did not report the correct cash amount on hand. Repeat Findings from Prior Years: No. Recommendation: We recommend that the City follows its comprehensive policies and procedures ensuring that the quarterly reports are reviewed timely before they are submitted to the federal agencies. Views of Responsible Officials: See separately issued Corrective Action Plan.
Finding 2023-002
2023-002 Program: Community Development Block Grants / Entitlement Grants Federal Financial Assistance Listing Number: 14.218 Grant Identification Number: B-22-MC-06-0004 and related program income Federal Grantor: U.S. Department of Housing and Urban Development Passthrough Entity: State Department of Housing and Community Development Compliance Requirements: Reporting Type of Finding: Material Weakness in the Internal Control over Compliance and Material Noncompliance Repeat finding: Yes Criteria: 2 CFR 200.329(b) requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with program requirements. The City must submit Quarterly Reports that contains the cash available on hand that is supported by actual amounts reported in the financial statements. Condition: Cash on hand information was reported inaccurately. Cause: The City’s control did not ensure the Cash on Hand Report was prepared in accordance with federal requirements and the review process at the City did not capture the information needed to ensure that the reports were accurate. Effect: Inaccurate information was reported to the federal awarding agency. Questioned Costs: None. Context/Sampling: All four quarters of the program did not report the correct cash amount on hand. Repeat Findings from Prior Years: No. Recommendation: We recommend that the City follows its comprehensive policies and procedures ensuring that the quarterly reports are reviewed timely before they are submitted to the federal agencies. Views of Responsible Officials: See separately issued Corrective Action Plan.
Finding 2023-002
2023-002 Program: Community Development Block Grants / Entitlement Grants Federal Financial Assistance Listing Number: 14.218 Grant Identification Number: B-22-MC-06-0004 and related program income Federal Grantor: U.S. Department of Housing and Urban Development Passthrough Entity: State Department of Housing and Community Development Compliance Requirements: Reporting Type of Finding: Material Weakness in the Internal Control over Compliance and Material Noncompliance Repeat finding: Yes Criteria: 2 CFR 200.329(b) requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with program requirements. The City must submit Quarterly Reports that contains the cash available on hand that is supported by actual amounts reported in the financial statements. Condition: Cash on hand information was reported inaccurately. Cause: The City’s control did not ensure the Cash on Hand Report was prepared in accordance with federal requirements and the review process at the City did not capture the information needed to ensure that the reports were accurate. Effect: Inaccurate information was reported to the federal awarding agency. Questioned Costs: None. Context/Sampling: All four quarters of the program did not report the correct cash amount on hand. Repeat Findings from Prior Years: No. Recommendation: We recommend that the City follows its comprehensive policies and procedures ensuring that the quarterly reports are reviewed timely before they are submitted to the federal agencies. Views of Responsible Officials: See separately issued Corrective Action Plan.