FAC Explorer

Audit 31040

FY End
2022-06-30
Total Expended
$11.09M
Findings
2
Programs
9
Organization: City of Monterey (CA)
Year: 2022 Accepted: 2023-06-08
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
38221 2022-002 Significant Deficiency Yes L
614663 2022-002 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $6.51M Yes 0
20.205 Highway Planning and Construction $2.35M - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.38M Yes 0
21.019 Coronavirus Relief Fund $493,228 - 0
97.083 Staffing for Adequate Fire and Emergency Response (safer) $47,606 - 0
20.600 State and Community Highway Safety $11,807 - 0
84.033 Federal Work-Study Program $5,606 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $4,798 - 0
16.607 Bulletproof Vest Partnership Program $33 - 0

Contacts

Name Title Type
TJNLQ7M39K51 Stella Sandoval Auditee
8316463933 Ahmad Gharaibeh Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards presents the activity of all federal awards programs of the City of Monterey for the year ended June 30, 2022. The information in this 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 (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the City it is not intended to and does not present the financial position, changes net position, or cash flows of the City. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-002
2022-002 Program: Community Development Block Grants / Entitlement Grants Federal Financial Assistance Listing Number: 14.218 Grant Identification Number: B-21-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: Significant deficiency in Internal Control over Compliance and Compliance Other Matters Criteria: The grant requires that SF-425, Federal Financial Report ? Quarterly Federal Financial Report (?FFR?) are filed no later than 30 days after the end of the quarter. Condition: During our audit, we noted that the City did not file the FFR timely for two of the four quarters during the year ended June 30, 2022. The late submission is summarized as follows: Cause: The City was in the process of hiring a consultant to assist with the implementation of corrective action plan. The quarterly reports were finally caught up in the 3rd quarter of the fiscal year. Effect: The delay in filing the report resulted in noncompliance with program requirements. Questioned Costs: None. Context/Sampling: See condition above for context of the finding. Repeat Findings from Prior Years: Repeat finding, see 2021-003 in the Prior Year Current Findings and Questioned Costs Section. Recommendation: We recommend that the City follows its comprehensive policies and procedures and specify the deadlines for all required reporting for all City employees to follow. Views of Responsible Officials: Management concurrs with the finding and will ensure that the reports are filed timely.
Finding 2022-002
2022-002 Program: Community Development Block Grants / Entitlement Grants Federal Financial Assistance Listing Number: 14.218 Grant Identification Number: B-21-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: Significant deficiency in Internal Control over Compliance and Compliance Other Matters Criteria: The grant requires that SF-425, Federal Financial Report ? Quarterly Federal Financial Report (?FFR?) are filed no later than 30 days after the end of the quarter. Condition: During our audit, we noted that the City did not file the FFR timely for two of the four quarters during the year ended June 30, 2022. The late submission is summarized as follows: Cause: The City was in the process of hiring a consultant to assist with the implementation of corrective action plan. The quarterly reports were finally caught up in the 3rd quarter of the fiscal year. Effect: The delay in filing the report resulted in noncompliance with program requirements. Questioned Costs: None. Context/Sampling: See condition above for context of the finding. Repeat Findings from Prior Years: Repeat finding, see 2021-003 in the Prior Year Current Findings and Questioned Costs Section. Recommendation: We recommend that the City follows its comprehensive policies and procedures and specify the deadlines for all required reporting for all City employees to follow. Views of Responsible Officials: Management concurrs with the finding and will ensure that the reports are filed timely.