Audit 304834

Federal Program Community Programs to Improve Minority Health - 93.137, Contract 1 CPIMP211290-01-00 Criteria Each entity that passes federal funds to a subrecipient must evaluate each subrecipient’s risk of noncompliance for purposes of determining the appropriate subrecipient monitoring related to the subaward and monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes per 2 CFR, Section 200.332(d). Condition The City did not perform a risk assessment or any additional monitoring of subrecipients beyond reviewing requests for payment. Cause This is a new grant for the City in 2022 and there was turnover in the grant director position during the year. Effect If subrecipient monitoring procedures were performed, the City would be able to ensure that funds were used to carry out the subaward for the intended purpose. Questioned Costs None. Context The City was awarded a grant to be used for improving minority health. To carry out part of the grant programs, the City has contracted with subrecipients’ organizations. The City has a process where all applications for reimbursement from the subrecipients is reviewed with proper documentation before approval for payment. The City does not perform a risk assessment of the subrecipient agencies nor any further monitoring such as site visits. Repeat Finding Yes. Recommendation We recommend that the City continue developing standard operating procedures for subrecipient monitoring of grant activities. This is especially important for grants handled outside the community development office. Management Response See corrective action plan included in this report package.

Federal Program COVID-19 - American Rescue Plan - State and Local Fiscal Recovery Funds - 21.027 Criteria The City is required to submit project and expenditure reports quarterly to the Department of Treasury. Condition The reports filed by the City were unable to be tested as the backup was not available to verify the key line items noted in the Compliance Supplement. Cause The Director of Finance filed the reports as required with the assistance of a third-party consultant. When the reports were filed, no backup was maintained to support the reports. Effect Without the backup for the reports filed, the City was unable to support and verify key line items as required by the Compliance Supplement. Questioned Costs None. Context The City is required to submit project and expenditure reports to the Department of Treasury through their portal quarterly. Our testing noted that the reports were submitted in a timely fashion. The Director of Finance indicated that the reports are filed based on a general ledger report run at the time the report is completed. There was no backup or evidence maintained to support the reports that were run for the report filings. The lack of audit evidence did not allow us to complete the required testing. Repeat Finding No. Recommendation We recommend the City update its report filing procedures to include the saving or printing of backup documentation to support the amount reported. The report should also be reviewed by a separate individual than the one compiling the information. Management Response See corrective action plan included in this.

Federal Program Community Programs to Improve Minority Health - 93.137, Contract 1 CPIMP211290-01-00 Criteria Each entity that passes federal funds to a subrecipient must evaluate each subrecipient’s risk of noncompliance for purposes of determining the appropriate subrecipient monitoring related to the subaward and monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes per 2 CFR, Section 200.332(d). Condition The City did not perform a risk assessment or any additional monitoring of subrecipients beyond reviewing requests for payment. Cause This is a new grant for the City in 2022 and there was turnover in the grant director position during the year. Effect If subrecipient monitoring procedures were performed, the City would be able to ensure that funds were used to carry out the subaward for the intended purpose. Questioned Costs None. Context The City was awarded a grant to be used for improving minority health. To carry out part of the grant programs, the City has contracted with subrecipients’ organizations. The City has a process where all applications for reimbursement from the subrecipients is reviewed with proper documentation before approval for payment. The City does not perform a risk assessment of the subrecipient agencies nor any further monitoring such as site visits. Repeat Finding Yes. Recommendation We recommend that the City continue developing standard operating procedures for subrecipient monitoring of grant activities. This is especially important for grants handled outside the community development office. Management Response See corrective action plan included in this report package.

Federal Program COVID-19 - American Rescue Plan - State and Local Fiscal Recovery Funds - 21.027 Criteria The City is required to submit project and expenditure reports quarterly to the Department of Treasury. Condition The reports filed by the City were unable to be tested as the backup was not available to verify the key line items noted in the Compliance Supplement. Cause The Director of Finance filed the reports as required with the assistance of a third-party consultant. When the reports were filed, no backup was maintained to support the reports. Effect Without the backup for the reports filed, the City was unable to support and verify key line items as required by the Compliance Supplement. Questioned Costs None. Context The City is required to submit project and expenditure reports to the Department of Treasury through their portal quarterly. Our testing noted that the reports were submitted in a timely fashion. The Director of Finance indicated that the reports are filed based on a general ledger report run at the time the report is completed. There was no backup or evidence maintained to support the reports that were run for the report filings. The lack of audit evidence did not allow us to complete the required testing. Repeat Finding No. Recommendation We recommend the City update its report filing procedures to include the saving or printing of backup documentation to support the amount reported. The report should also be reviewed by a separate individual than the one compiling the information. Management Response See corrective action plan included in this.