FAC Explorer

Audit 306255

FY End
2023-06-30
Total Expended
$41.40M
Findings
6
Programs
24
Organization: City of Fayetteville (NC)
Year: 2023 Accepted: 2024-05-14
Auditor: Pbmares LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
396652 2023-002 Significant Deficiency - L
396653 2023-002 Significant Deficiency - L
396654 2023-002 Significant Deficiency - L
973094 2023-002 Significant Deficiency - L
973095 2023-002 Significant Deficiency - L
973096 2023-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $13.30M - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $3.84M Yes 0
66.468 Capitalization Grants for Drinking Water State Revolving Funds $2.29M - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $2.08M Yes 0
10.923 Emergency Watershed Protection Program $1.10M Yes 0
97.083 Staffing for Adequate Fire and Emergency Response (safer) $1.07M - 0
20.106 Airport Improvement Program $945,962 - 0
16.922 Equitable Sharing Program $498,907 - 0
14.892 Choice Neighborhoods Planning Grants $333,651 - 0
14.241 Housing Opportunities for Persons with Aids $229,807 - 0
16.833 National Sexual Assault Kit Initiative $154,243 - 0
14.239 Home Investment Partnerships Program $98,053 - 0
97.090 Law Enforcement Officer Reimbursement $94,240 - 0
20.507 Federal Transit_formula Grants $45,049 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $22,881 - 0
16.710 Public Safety Partnership and Community Policing Grants $9,470 - 0
97.044 Assistance to Firefighters Grant $8,710 - 0
16.609 Project Safe Neighborhoods $3,834 - 0
15.904 Historic Preservation Fund Grants-in-Aid $3,160 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $3,071 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $2,606 - 0
21.023 Emergency Rental Assistance Program $1,614 - 0
14.218 Community Development Block Grants/entitlement Grants $0 Yes 1
20.205 Highway Planning and Construction $0 - 0

Contacts

Name Title Type
M7SAWYCADYW1 Jody Picarella Auditee
9104331682 Robert Bittner Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: The City of Fayetteville has elected to not use the 10% de-minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal and State Awards (SEFSA is presented in accoudance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the State Single Audit Implentation Act. Because the Schedule presents only a selected protion of the operations of the City of Fayetteville, it is not intended to and does not present the financial position, changes in net position or cash flows of the City of Fayetteville.
Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: The City of Fayetteville has elected to not use the 10% de-minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not alloqable or are limited as reimbursement
Title: Note 3 - Indirect Cost Rate Accounting Policies: Expenditures reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: The City of Fayetteville has elected to not use the 10% de-minimis indirect cost rate as allowed under the Uniform Guidance. The City of Fayetteville has elected not to use the 10% de-minimis indirect cost rate as allowed under the Uniform Guidance
Title: Not 4 - Loans Outstanding Accounting Policies: Expenditures reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: The City of Fayetteville has elected to not use the 10% de-minimis indirect cost rate as allowed under the Uniform Guidance. Fayetteville Public Works Commission, a discreatly presented component unit of the City of Fayetteville has outstanding loan balances from Federal and State funding sources that are not required to be presented in the SEFSA beyond repayment of the loan balances in accordance with the loan agreement provisions.

Finding Details

Finding 2023-002
Section 3. Findings and Questioned Costs for Federal Awards Finding: 2023-002: Significant Deficiency in Internal Control Over Compliance - Timeliness Reporting- CDBG Quarterly Reports Program Assistance Listing Number: 14.218 Community Development Block Grant/Entitlement Grants Federal Agency: Department of Housing and Urban Development Applicable Compliance Requirement: Reporting Criteria: The May 2023 OMB Compliance Supplement requires the PR29-CDBG Cash on Hand Quarterly Report to be filed for all recipients of CDBG Entitlement Grants. Per the “Instructions for IDIS Cash on Hand Quarterly Report”, the reports are required to be submitted to the US Department of Housing and Urban Development within 30 days after the end of the reporting period. Condition and context: The City submitted 3 out of 4 Cash on Hand reports between 8 and 90 days late. Effect: Cash on Hand reports were not submitted timely. Cause: Insufficient control environment, experienced staff turnover, and changes in accounting software. Recommendation: We recommend the City of Fayetteville establish appropriate controls and hire appropriate staff to ensure timely submission of required reports. Management’s response: See Corrective Action Plan
Finding 2023-002
Section 3. Findings and Questioned Costs for Federal Awards Finding: 2023-002: Significant Deficiency in Internal Control Over Compliance - Timeliness Reporting- CDBG Quarterly Reports Program Assistance Listing Number: 14.218 Community Development Block Grant/Entitlement Grants Federal Agency: Department of Housing and Urban Development Applicable Compliance Requirement: Reporting Criteria: The May 2023 OMB Compliance Supplement requires the PR29-CDBG Cash on Hand Quarterly Report to be filed for all recipients of CDBG Entitlement Grants. Per the “Instructions for IDIS Cash on Hand Quarterly Report”, the reports are required to be submitted to the US Department of Housing and Urban Development within 30 days after the end of the reporting period. Condition and context: The City submitted 3 out of 4 Cash on Hand reports between 8 and 90 days late. Effect: Cash on Hand reports were not submitted timely. Cause: Insufficient control environment, experienced staff turnover, and changes in accounting software. Recommendation: We recommend the City of Fayetteville establish appropriate controls and hire appropriate staff to ensure timely submission of required reports. Management’s response: See Corrective Action Plan
Finding 2023-002
Section 3. Findings and Questioned Costs for Federal Awards Finding: 2023-002: Significant Deficiency in Internal Control Over Compliance - Timeliness Reporting- CDBG Quarterly Reports Program Assistance Listing Number: 14.218 Community Development Block Grant/Entitlement Grants Federal Agency: Department of Housing and Urban Development Applicable Compliance Requirement: Reporting Criteria: The May 2023 OMB Compliance Supplement requires the PR29-CDBG Cash on Hand Quarterly Report to be filed for all recipients of CDBG Entitlement Grants. Per the “Instructions for IDIS Cash on Hand Quarterly Report”, the reports are required to be submitted to the US Department of Housing and Urban Development within 30 days after the end of the reporting period. Condition and context: The City submitted 3 out of 4 Cash on Hand reports between 8 and 90 days late. Effect: Cash on Hand reports were not submitted timely. Cause: Insufficient control environment, experienced staff turnover, and changes in accounting software. Recommendation: We recommend the City of Fayetteville establish appropriate controls and hire appropriate staff to ensure timely submission of required reports. Management’s response: See Corrective Action Plan
Finding 2023-002
Section 3. Findings and Questioned Costs for Federal Awards Finding: 2023-002: Significant Deficiency in Internal Control Over Compliance - Timeliness Reporting- CDBG Quarterly Reports Program Assistance Listing Number: 14.218 Community Development Block Grant/Entitlement Grants Federal Agency: Department of Housing and Urban Development Applicable Compliance Requirement: Reporting Criteria: The May 2023 OMB Compliance Supplement requires the PR29-CDBG Cash on Hand Quarterly Report to be filed for all recipients of CDBG Entitlement Grants. Per the “Instructions for IDIS Cash on Hand Quarterly Report”, the reports are required to be submitted to the US Department of Housing and Urban Development within 30 days after the end of the reporting period. Condition and context: The City submitted 3 out of 4 Cash on Hand reports between 8 and 90 days late. Effect: Cash on Hand reports were not submitted timely. Cause: Insufficient control environment, experienced staff turnover, and changes in accounting software. Recommendation: We recommend the City of Fayetteville establish appropriate controls and hire appropriate staff to ensure timely submission of required reports. Management’s response: See Corrective Action Plan
Finding 2023-002
Section 3. Findings and Questioned Costs for Federal Awards Finding: 2023-002: Significant Deficiency in Internal Control Over Compliance - Timeliness Reporting- CDBG Quarterly Reports Program Assistance Listing Number: 14.218 Community Development Block Grant/Entitlement Grants Federal Agency: Department of Housing and Urban Development Applicable Compliance Requirement: Reporting Criteria: The May 2023 OMB Compliance Supplement requires the PR29-CDBG Cash on Hand Quarterly Report to be filed for all recipients of CDBG Entitlement Grants. Per the “Instructions for IDIS Cash on Hand Quarterly Report”, the reports are required to be submitted to the US Department of Housing and Urban Development within 30 days after the end of the reporting period. Condition and context: The City submitted 3 out of 4 Cash on Hand reports between 8 and 90 days late. Effect: Cash on Hand reports were not submitted timely. Cause: Insufficient control environment, experienced staff turnover, and changes in accounting software. Recommendation: We recommend the City of Fayetteville establish appropriate controls and hire appropriate staff to ensure timely submission of required reports. Management’s response: See Corrective Action Plan
Finding 2023-002
Section 3. Findings and Questioned Costs for Federal Awards Finding: 2023-002: Significant Deficiency in Internal Control Over Compliance - Timeliness Reporting- CDBG Quarterly Reports Program Assistance Listing Number: 14.218 Community Development Block Grant/Entitlement Grants Federal Agency: Department of Housing and Urban Development Applicable Compliance Requirement: Reporting Criteria: The May 2023 OMB Compliance Supplement requires the PR29-CDBG Cash on Hand Quarterly Report to be filed for all recipients of CDBG Entitlement Grants. Per the “Instructions for IDIS Cash on Hand Quarterly Report”, the reports are required to be submitted to the US Department of Housing and Urban Development within 30 days after the end of the reporting period. Condition and context: The City submitted 3 out of 4 Cash on Hand reports between 8 and 90 days late. Effect: Cash on Hand reports were not submitted timely. Cause: Insufficient control environment, experienced staff turnover, and changes in accounting software. Recommendation: We recommend the City of Fayetteville establish appropriate controls and hire appropriate staff to ensure timely submission of required reports. Management’s response: See Corrective Action Plan