FAC Explorer

Audit 311634

FY End
2022-12-31
Total Expended
$37.73M
Findings
26
Programs
32
Organization: City of Jersey City (NJ)
Year: 2022 Accepted: 2024-07-03
Auditor: Donohue Gironda Doria & Tomkins LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
406456 2022-006 - Yes L
406457 2022-006 - Yes L
406458 2022-006 - Yes L
406459 2022-006 - Yes L
406460 2022-006 - Yes L
406461 2022-006 - Yes L
406462 2022-006 Significant Deficiency Yes L
406463 2022-006 - Yes L
406464 2022-007 - - L
406465 2022-007 - - L
406466 2022-007 - - L
406467 2022-008 - - L
406468 2022-008 - - L
982898 2022-006 - Yes L
982899 2022-006 - Yes L
982900 2022-006 - Yes L
982901 2022-006 - Yes L
982902 2022-006 - Yes L
982903 2022-006 - Yes L
982904 2022-006 Significant Deficiency Yes L
982905 2022-006 - Yes L
982906 2022-007 - - L
982907 2022-007 - - L
982908 2022-007 - - L
982909 2022-008 - - L
982910 2022-008 - - L

Programs

ALN Program Spent Major Findings
97.036 Covid-19 - Disaster Grants - Public Assistance (presidentially Declared Disasters) $8.73M Yes 1
14.218 Community Development Block Grants/entitlement Grants $8.53M Yes 2
97.067 Homeland Security Grant Program $2.52M Yes 0
14.241 Housing Opportunities for Persons with Aids $1.95M Yes 1
21.023 Emergency Rental Assistance Program 2 $1.86M Yes 0
21.023 Covid-19: - Emergency Rental Assistance Program 1 $1.82M Yes 0
14.231 Covid-19: Esg-Cv1 - Emergency Solutions Grant Program $1.47M Yes 1
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $1.27M Yes 0
14.239 Home Investment Partnerships Program $1.20M Yes 2
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $1.10M - 0
21.016 Equitable Sharing $1.08M - 0
21.027 Covid-19: Coronavirus State and Local Fiscal Recovery Funds $816,818 - 0
93.569 Community Services Block Grant $756,979 Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $696,952 Yes 1
14.231 Emergency Solutions Grant Program $596,130 Yes 1
93.569 Covid-19: Community Services Block Grant $588,900 Yes 0
14.218 Covid-19: Cdbg-Cv1 - Community Development Block Grants/entitlement Grants $486,440 Yes 2
16.585 Drug Court Discretionary Grant Program $465,206 - 0
10.559 Summer Food Service Program for Children $301,896 - 0
14.231 Covid-19: Esg-Cv2 - Emergency Solutions Grant Program $219,479 Yes 1
20.205 Highway Planning and Construction $217,398 - 0
17.258 Wia Adult Program $197,674 - 0
17.259 Wia Youth Activities $193,976 - 0
93.940 Hiv Prevention Activities_health Department Based $167,987 - 0
97.056 Port Security Grant Program $155,560 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $131,388 - 0
14.241 Covid-19: Hopwa-Cv - Housing Opportunities for Persons with Aids $105,043 Yes 1
17.278 Wia Dislocated Worker Formula Grants $93,349 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $5,300 - 0
93.917 Hiv Care Formula Grants $4,067 - 0
14.272 National Resilient Disaster Recovery Competition $863 - 0
10.576 Senior Farmers Market Nutrition Program $778 - 0

Contacts

Name Title Type
LWEPJ7NVFHN3 John Mercer Auditee
2015474417 Mark Bednarz Auditor
No contacts on file

Notes to SEFA

Title: NOTE C. REPORTING ENTITY Accounting Policies: The accounting policies of the City conform to the accounting principles and practices prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the “Division”). Such principles and practices are designed primarily for determining compliance with legal provisions and budgetary restrictions and as a means of reporting on the stewardship of public officials with respect to public funds. Under this method of accounting, the City accounts for federal awards and state financial assistance through the following accounting practices which differ from those required by accounting principles generally accepted in the United States of America. Accounting functions for the grants are performed by the City’s Accounts and Control. Grant and program cash funds may be commingled with the City’s other funds provided each grant is accounted for separately within the City’s financial records. In accordance with the Division’s directives, the City (a) fully realizes grant revenues anticipated in the Current Fund operating budget and establishes a corresponding receivable for each grant in the State and Federal Grants Fund, and (b) fully charges grants appropriated in the Current Fund operating budget and establishes a corresponding spending reserve, referred to as an ‘Appropriated Reserve’ in the State and Federal Grants Fund. In some instances, grants anticipated and appropriated in the Current Fund operating budget may be established as receivables and reserves in a Trust Fund instead of the State and Federal Grants Fund. Local Contributions – Local matching contributions are required by certain federal and state grants. The amount or percentage of matching contributions varies with each program. Local matching contributions are raised in the Current Fund budget. De Minimis Rate Used: N Rate Explanation: The City is not utilizing the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The City of Jersey City (the “City”), received and continues to participate in numerous federal award and state financial assistance programs, in the form of grant cost reimbursements and revenue sharing entitlements. The City is the reporting entity for the grant programs received. Administration of the grant programs is performed by the various departments of the City. The City, for purposes of the schedules of expenditures of federal awards and state financial assistance, includes all of the primary government as defined criteria established by the Governmental Accounting Standards Board. The City administers certain federal and state award programs through subrecipients. Those subrecipients are not considered part of the City’s reporting entity.
Title: NOTE D. BASIS OF PRESENTATION Accounting Policies: The accounting policies of the City conform to the accounting principles and practices prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the “Division”). Such principles and practices are designed primarily for determining compliance with legal provisions and budgetary restrictions and as a means of reporting on the stewardship of public officials with respect to public funds. Under this method of accounting, the City accounts for federal awards and state financial assistance through the following accounting practices which differ from those required by accounting principles generally accepted in the United States of America. Accounting functions for the grants are performed by the City’s Accounts and Control. Grant and program cash funds may be commingled with the City’s other funds provided each grant is accounted for separately within the City’s financial records. In accordance with the Division’s directives, the City (a) fully realizes grant revenues anticipated in the Current Fund operating budget and establishes a corresponding receivable for each grant in the State and Federal Grants Fund, and (b) fully charges grants appropriated in the Current Fund operating budget and establishes a corresponding spending reserve, referred to as an ‘Appropriated Reserve’ in the State and Federal Grants Fund. In some instances, grants anticipated and appropriated in the Current Fund operating budget may be established as receivables and reserves in a Trust Fund instead of the State and Federal Grants Fund. Local Contributions – Local matching contributions are required by certain federal and state grants. The amount or percentage of matching contributions varies with each program. Local matching contributions are raised in the Current Fund budget. De Minimis Rate Used: N Rate Explanation: The City is not utilizing the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedules of expenditures of federal awards and state financial assistance (the “Schedules”) present the activity of all federal and state programs of the City. All federal awards received directly from federal agencies or passed through other government agencies are included on the schedule of expenditures of federal awards. All state awards received directly from state agencies or passed through other government agencies are included in the schedule of expenditures of state financial assistance. The information in these Schedules are presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and audit Requirements for Federal Awards (Uniform Guidance) and New Jersey OMB Circular Letter 15-08 Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid.
Title: NOTE E. MONITORING OF SUB-RECIPIENTS Accounting Policies: The accounting policies of the City conform to the accounting principles and practices prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the “Division”). Such principles and practices are designed primarily for determining compliance with legal provisions and budgetary restrictions and as a means of reporting on the stewardship of public officials with respect to public funds. Under this method of accounting, the City accounts for federal awards and state financial assistance through the following accounting practices which differ from those required by accounting principles generally accepted in the United States of America. Accounting functions for the grants are performed by the City’s Accounts and Control. Grant and program cash funds may be commingled with the City’s other funds provided each grant is accounted for separately within the City’s financial records. In accordance with the Division’s directives, the City (a) fully realizes grant revenues anticipated in the Current Fund operating budget and establishes a corresponding receivable for each grant in the State and Federal Grants Fund, and (b) fully charges grants appropriated in the Current Fund operating budget and establishes a corresponding spending reserve, referred to as an ‘Appropriated Reserve’ in the State and Federal Grants Fund. In some instances, grants anticipated and appropriated in the Current Fund operating budget may be established as receivables and reserves in a Trust Fund instead of the State and Federal Grants Fund. Local Contributions – Local matching contributions are required by certain federal and state grants. The amount or percentage of matching contributions varies with each program. Local matching contributions are raised in the Current Fund budget. De Minimis Rate Used: N Rate Explanation: The City is not utilizing the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Under the requirements of the Single Audit Act and State regulations, if the City, as a primary recipient, receives federal and state financial assistance and provides $750,000 or more of such assistance to a sub-recipient in a fiscal year, the City is responsible for determining that the expenditures of federal and state monies passed through to sub-recipients are utilized in accordance with applicable laws and regulations.
Title: NOTE F. RELATIONSHIP TO FEDERAL FINANCIAL REPORTS Accounting Policies: The accounting policies of the City conform to the accounting principles and practices prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the “Division”). Such principles and practices are designed primarily for determining compliance with legal provisions and budgetary restrictions and as a means of reporting on the stewardship of public officials with respect to public funds. Under this method of accounting, the City accounts for federal awards and state financial assistance through the following accounting practices which differ from those required by accounting principles generally accepted in the United States of America. Accounting functions for the grants are performed by the City’s Accounts and Control. Grant and program cash funds may be commingled with the City’s other funds provided each grant is accounted for separately within the City’s financial records. In accordance with the Division’s directives, the City (a) fully realizes grant revenues anticipated in the Current Fund operating budget and establishes a corresponding receivable for each grant in the State and Federal Grants Fund, and (b) fully charges grants appropriated in the Current Fund operating budget and establishes a corresponding spending reserve, referred to as an ‘Appropriated Reserve’ in the State and Federal Grants Fund. In some instances, grants anticipated and appropriated in the Current Fund operating budget may be established as receivables and reserves in a Trust Fund instead of the State and Federal Grants Fund. Local Contributions – Local matching contributions are required by certain federal and state grants. The amount or percentage of matching contributions varies with each program. Local matching contributions are raised in the Current Fund budget. De Minimis Rate Used: N Rate Explanation: The City is not utilizing the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The regulations and guidelines governing the preparation of federal and state financial reports vary by federal and state agency and among programs administered by the same agency. Accordingly, the amounts reported in the federal and state financial reports do not necessarily agree with the amounts reported in the accompanying schedules of expenditures of federal awards and state financial assistance, which are prepared on the basis of accounting explained in Note A.
Title: NOTE G. PASS-THROUGH AWARDS AND COMMINGLED ASSISTANCE Accounting Policies: The accounting policies of the City conform to the accounting principles and practices prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the “Division”). Such principles and practices are designed primarily for determining compliance with legal provisions and budgetary restrictions and as a means of reporting on the stewardship of public officials with respect to public funds. Under this method of accounting, the City accounts for federal awards and state financial assistance through the following accounting practices which differ from those required by accounting principles generally accepted in the United States of America. Accounting functions for the grants are performed by the City’s Accounts and Control. Grant and program cash funds may be commingled with the City’s other funds provided each grant is accounted for separately within the City’s financial records. In accordance with the Division’s directives, the City (a) fully realizes grant revenues anticipated in the Current Fund operating budget and establishes a corresponding receivable for each grant in the State and Federal Grants Fund, and (b) fully charges grants appropriated in the Current Fund operating budget and establishes a corresponding spending reserve, referred to as an ‘Appropriated Reserve’ in the State and Federal Grants Fund. In some instances, grants anticipated and appropriated in the Current Fund operating budget may be established as receivables and reserves in a Trust Fund instead of the State and Federal Grants Fund. Local Contributions – Local matching contributions are required by certain federal and state grants. The amount or percentage of matching contributions varies with each program. Local matching contributions are raised in the Current Fund budget. De Minimis Rate Used: N Rate Explanation: The City is not utilizing the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The City receives federal and state awards passed-through different levels of government. As a result, the individual sources of federal and state awards may be commingled and not always separately identifiable. In instances in which the federal amounts received are commingled by the state or other levels of government with other funds and cannot be separately identified, they are reported as federal expenditures. In instances in which the state amounts received are commingled by other levels of government, other than federal, and cannot be separately identified, they are reported as state expenditures. The following awards include both state and federal funding which are not separately identifiable, and which are reported on the schedule of expenditures of federal awards Aging Cluster - The City annually receives a “Senior Nutrition” Grant from the County of Hudson, Area Agency on Aging. This Senior Nutrition award includes funds for CFDA No. 93.045, 93.053 and 93.667, but the City’s accounting system does not separate the expenditures for the Senior Nutrition Grant by the individual CFDA Numbers. The Schedule of Expenditures of Federal Awards presents the total expenditures under the “Aging Cluster”.
Title: NOTE H. CONTINGENCIES Accounting Policies: The accounting policies of the City conform to the accounting principles and practices prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the “Division”). Such principles and practices are designed primarily for determining compliance with legal provisions and budgetary restrictions and as a means of reporting on the stewardship of public officials with respect to public funds. Under this method of accounting, the City accounts for federal awards and state financial assistance through the following accounting practices which differ from those required by accounting principles generally accepted in the United States of America. Accounting functions for the grants are performed by the City’s Accounts and Control. Grant and program cash funds may be commingled with the City’s other funds provided each grant is accounted for separately within the City’s financial records. In accordance with the Division’s directives, the City (a) fully realizes grant revenues anticipated in the Current Fund operating budget and establishes a corresponding receivable for each grant in the State and Federal Grants Fund, and (b) fully charges grants appropriated in the Current Fund operating budget and establishes a corresponding spending reserve, referred to as an ‘Appropriated Reserve’ in the State and Federal Grants Fund. In some instances, grants anticipated and appropriated in the Current Fund operating budget may be established as receivables and reserves in a Trust Fund instead of the State and Federal Grants Fund. Local Contributions – Local matching contributions are required by certain federal and state grants. The amount or percentage of matching contributions varies with each program. Local matching contributions are raised in the Current Fund budget. De Minimis Rate Used: N Rate Explanation: The City is not utilizing the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Entitlement to grant funds is generally conditional upon compliance with terms and conditions of the grant agreements and applicable laws and regulations. Federal and state grants, entitlements and cost reimbursements are subject to financial and compliance audits by grantors. Such contingencies are fully disclosed in the Notes to the Financial Statements.

Finding Details

Finding 2022-006
Criteria: Sound accounting policies suggest that the City is required to reconcile and compare information reported in its financial records to the underlying accounting records and reports provided to and from grantor and oversight agencies. Conditon: General ledgers for the City’s Community Development Block Grant (CDBG), Home Investment Partnership Grant (HOME), Housing Opportunities for Persons with AIDS (HOPWA) and Emergency Shelter Grant (ESG) funds do not always close certain current activity accounts to grant reserves for proper carryforward. In addition, certain general ledger receivable and other accounts remain from prior years that should be investigated for proper disposition. Effect: Accounts in the CDBG Trust Fund may require adjustments and possibly funding to reconcile and adjust for prior year remnant discrepancy. Cause: The remaining discrepancies were carried forward from prior years when the City did not reconcile the City’s financial records to the IDIS system. Context: The City has incorporated a process of reconciling current year IDIS System drawdowns and activity to its general ledger. Certain legacy receivable and other account balances remain in the City’s general ledger, carrying forward from prior year activity when the City did not properly reconcile general ledgers to IDIS System activity (previously reported as material weaknesses in significant deficiencies). Whereas this finding has been repeated annually from 2011 to 2020 as a material weakness and 2021 as a significant deficiency, it has been downgraded to a matter of compliance and other. Additional reconciliation is required to correct the remaining discrepancies carried forward from prior years. Recommendation: The City should continue with reconciling IDIS System drawdowns and activity to its general and subsidiary ledgers. The City should investigate discrepancies carried forward from prior years for proper disposition. Views of Responsible Officials of the City (unaudited): The Chief Financial Officer will continue to oversee this project to close out the old accounts in a timely manner and make sure all systems are reconciled. Internal controls have been set into place to ensure future compliance. The Comptroller will train and continue to work closely with personnel in charge of reporting and processing IDIS and vouchers drawdowns. The Division of Accounts & Control will continue to maintain a sub-ledger to ensure IDIS and the City’s financial system tie out prior to the processing of any payments, and each payment request will require an IDIS activity reference number in order to be processed. Monthly reconciliation of funds has been implemented and copies are sent to US HUD on a monthly basis. In addition, the City has hired a 3rd party grant consultant to help navigate and strengthen our overall processes.
Finding 2022-006
Criteria: Sound accounting policies suggest that the City is required to reconcile and compare information reported in its financial records to the underlying accounting records and reports provided to and from grantor and oversight agencies. Conditon: General ledgers for the City’s Community Development Block Grant (CDBG), Home Investment Partnership Grant (HOME), Housing Opportunities for Persons with AIDS (HOPWA) and Emergency Shelter Grant (ESG) funds do not always close certain current activity accounts to grant reserves for proper carryforward. In addition, certain general ledger receivable and other accounts remain from prior years that should be investigated for proper disposition. Effect: Accounts in the CDBG Trust Fund may require adjustments and possibly funding to reconcile and adjust for prior year remnant discrepancy. Cause: The remaining discrepancies were carried forward from prior years when the City did not reconcile the City’s financial records to the IDIS system. Context: The City has incorporated a process of reconciling current year IDIS System drawdowns and activity to its general ledger. Certain legacy receivable and other account balances remain in the City’s general ledger, carrying forward from prior year activity when the City did not properly reconcile general ledgers to IDIS System activity (previously reported as material weaknesses in significant deficiencies). Whereas this finding has been repeated annually from 2011 to 2020 as a material weakness and 2021 as a significant deficiency, it has been downgraded to a matter of compliance and other. Additional reconciliation is required to correct the remaining discrepancies carried forward from prior years. Recommendation: The City should continue with reconciling IDIS System drawdowns and activity to its general and subsidiary ledgers. The City should investigate discrepancies carried forward from prior years for proper disposition. Views of Responsible Officials of the City (unaudited): The Chief Financial Officer will continue to oversee this project to close out the old accounts in a timely manner and make sure all systems are reconciled. Internal controls have been set into place to ensure future compliance. The Comptroller will train and continue to work closely with personnel in charge of reporting and processing IDIS and vouchers drawdowns. The Division of Accounts & Control will continue to maintain a sub-ledger to ensure IDIS and the City’s financial system tie out prior to the processing of any payments, and each payment request will require an IDIS activity reference number in order to be processed. Monthly reconciliation of funds has been implemented and copies are sent to US HUD on a monthly basis. In addition, the City has hired a 3rd party grant consultant to help navigate and strengthen our overall processes.
Finding 2022-006
Criteria: Sound accounting policies suggest that the City is required to reconcile and compare information reported in its financial records to the underlying accounting records and reports provided to and from grantor and oversight agencies. Conditon: General ledgers for the City’s Community Development Block Grant (CDBG), Home Investment Partnership Grant (HOME), Housing Opportunities for Persons with AIDS (HOPWA) and Emergency Shelter Grant (ESG) funds do not always close certain current activity accounts to grant reserves for proper carryforward. In addition, certain general ledger receivable and other accounts remain from prior years that should be investigated for proper disposition. Effect: Accounts in the CDBG Trust Fund may require adjustments and possibly funding to reconcile and adjust for prior year remnant discrepancy. Cause: The remaining discrepancies were carried forward from prior years when the City did not reconcile the City’s financial records to the IDIS system. Context: The City has incorporated a process of reconciling current year IDIS System drawdowns and activity to its general ledger. Certain legacy receivable and other account balances remain in the City’s general ledger, carrying forward from prior year activity when the City did not properly reconcile general ledgers to IDIS System activity (previously reported as material weaknesses in significant deficiencies). Whereas this finding has been repeated annually from 2011 to 2020 as a material weakness and 2021 as a significant deficiency, it has been downgraded to a matter of compliance and other. Additional reconciliation is required to correct the remaining discrepancies carried forward from prior years. Recommendation: The City should continue with reconciling IDIS System drawdowns and activity to its general and subsidiary ledgers. The City should investigate discrepancies carried forward from prior years for proper disposition. Views of Responsible Officials of the City (unaudited): The Chief Financial Officer will continue to oversee this project to close out the old accounts in a timely manner and make sure all systems are reconciled. Internal controls have been set into place to ensure future compliance. The Comptroller will train and continue to work closely with personnel in charge of reporting and processing IDIS and vouchers drawdowns. The Division of Accounts & Control will continue to maintain a sub-ledger to ensure IDIS and the City’s financial system tie out prior to the processing of any payments, and each payment request will require an IDIS activity reference number in order to be processed. Monthly reconciliation of funds has been implemented and copies are sent to US HUD on a monthly basis. In addition, the City has hired a 3rd party grant consultant to help navigate and strengthen our overall processes.
Finding 2022-006
Criteria: Sound accounting policies suggest that the City is required to reconcile and compare information reported in its financial records to the underlying accounting records and reports provided to and from grantor and oversight agencies. Conditon: General ledgers for the City’s Community Development Block Grant (CDBG), Home Investment Partnership Grant (HOME), Housing Opportunities for Persons with AIDS (HOPWA) and Emergency Shelter Grant (ESG) funds do not always close certain current activity accounts to grant reserves for proper carryforward. In addition, certain general ledger receivable and other accounts remain from prior years that should be investigated for proper disposition. Effect: Accounts in the CDBG Trust Fund may require adjustments and possibly funding to reconcile and adjust for prior year remnant discrepancy. Cause: The remaining discrepancies were carried forward from prior years when the City did not reconcile the City’s financial records to the IDIS system. Context: The City has incorporated a process of reconciling current year IDIS System drawdowns and activity to its general ledger. Certain legacy receivable and other account balances remain in the City’s general ledger, carrying forward from prior year activity when the City did not properly reconcile general ledgers to IDIS System activity (previously reported as material weaknesses in significant deficiencies). Whereas this finding has been repeated annually from 2011 to 2020 as a material weakness and 2021 as a significant deficiency, it has been downgraded to a matter of compliance and other. Additional reconciliation is required to correct the remaining discrepancies carried forward from prior years. Recommendation: The City should continue with reconciling IDIS System drawdowns and activity to its general and subsidiary ledgers. The City should investigate discrepancies carried forward from prior years for proper disposition. Views of Responsible Officials of the City (unaudited): The Chief Financial Officer will continue to oversee this project to close out the old accounts in a timely manner and make sure all systems are reconciled. Internal controls have been set into place to ensure future compliance. The Comptroller will train and continue to work closely with personnel in charge of reporting and processing IDIS and vouchers drawdowns. The Division of Accounts & Control will continue to maintain a sub-ledger to ensure IDIS and the City’s financial system tie out prior to the processing of any payments, and each payment request will require an IDIS activity reference number in order to be processed. Monthly reconciliation of funds has been implemented and copies are sent to US HUD on a monthly basis. In addition, the City has hired a 3rd party grant consultant to help navigate and strengthen our overall processes.
Finding 2022-006
Criteria: Sound accounting policies suggest that the City is required to reconcile and compare information reported in its financial records to the underlying accounting records and reports provided to and from grantor and oversight agencies. Conditon: General ledgers for the City’s Community Development Block Grant (CDBG), Home Investment Partnership Grant (HOME), Housing Opportunities for Persons with AIDS (HOPWA) and Emergency Shelter Grant (ESG) funds do not always close certain current activity accounts to grant reserves for proper carryforward. In addition, certain general ledger receivable and other accounts remain from prior years that should be investigated for proper disposition. Effect: Accounts in the CDBG Trust Fund may require adjustments and possibly funding to reconcile and adjust for prior year remnant discrepancy. Cause: The remaining discrepancies were carried forward from prior years when the City did not reconcile the City’s financial records to the IDIS system. Context: The City has incorporated a process of reconciling current year IDIS System drawdowns and activity to its general ledger. Certain legacy receivable and other account balances remain in the City’s general ledger, carrying forward from prior year activity when the City did not properly reconcile general ledgers to IDIS System activity (previously reported as material weaknesses in significant deficiencies). Whereas this finding has been repeated annually from 2011 to 2020 as a material weakness and 2021 as a significant deficiency, it has been downgraded to a matter of compliance and other. Additional reconciliation is required to correct the remaining discrepancies carried forward from prior years. Recommendation: The City should continue with reconciling IDIS System drawdowns and activity to its general and subsidiary ledgers. The City should investigate discrepancies carried forward from prior years for proper disposition. Views of Responsible Officials of the City (unaudited): The Chief Financial Officer will continue to oversee this project to close out the old accounts in a timely manner and make sure all systems are reconciled. Internal controls have been set into place to ensure future compliance. The Comptroller will train and continue to work closely with personnel in charge of reporting and processing IDIS and vouchers drawdowns. The Division of Accounts & Control will continue to maintain a sub-ledger to ensure IDIS and the City’s financial system tie out prior to the processing of any payments, and each payment request will require an IDIS activity reference number in order to be processed. Monthly reconciliation of funds has been implemented and copies are sent to US HUD on a monthly basis. In addition, the City has hired a 3rd party grant consultant to help navigate and strengthen our overall processes.
Finding 2022-006
Criteria: Sound accounting policies suggest that the City is required to reconcile and compare information reported in its financial records to the underlying accounting records and reports provided to and from grantor and oversight agencies. Conditon: General ledgers for the City’s Community Development Block Grant (CDBG), Home Investment Partnership Grant (HOME), Housing Opportunities for Persons with AIDS (HOPWA) and Emergency Shelter Grant (ESG) funds do not always close certain current activity accounts to grant reserves for proper carryforward. In addition, certain general ledger receivable and other accounts remain from prior years that should be investigated for proper disposition. Effect: Accounts in the CDBG Trust Fund may require adjustments and possibly funding to reconcile and adjust for prior year remnant discrepancy. Cause: The remaining discrepancies were carried forward from prior years when the City did not reconcile the City’s financial records to the IDIS system. Context: The City has incorporated a process of reconciling current year IDIS System drawdowns and activity to its general ledger. Certain legacy receivable and other account balances remain in the City’s general ledger, carrying forward from prior year activity when the City did not properly reconcile general ledgers to IDIS System activity (previously reported as material weaknesses in significant deficiencies). Whereas this finding has been repeated annually from 2011 to 2020 as a material weakness and 2021 as a significant deficiency, it has been downgraded to a matter of compliance and other. Additional reconciliation is required to correct the remaining discrepancies carried forward from prior years. Recommendation: The City should continue with reconciling IDIS System drawdowns and activity to its general and subsidiary ledgers. The City should investigate discrepancies carried forward from prior years for proper disposition. Views of Responsible Officials of the City (unaudited): The Chief Financial Officer will continue to oversee this project to close out the old accounts in a timely manner and make sure all systems are reconciled. Internal controls have been set into place to ensure future compliance. The Comptroller will train and continue to work closely with personnel in charge of reporting and processing IDIS and vouchers drawdowns. The Division of Accounts & Control will continue to maintain a sub-ledger to ensure IDIS and the City’s financial system tie out prior to the processing of any payments, and each payment request will require an IDIS activity reference number in order to be processed. Monthly reconciliation of funds has been implemented and copies are sent to US HUD on a monthly basis. In addition, the City has hired a 3rd party grant consultant to help navigate and strengthen our overall processes.
Finding 2022-006
Criteria: Sound accounting policies suggest that the City is required to reconcile and compare information reported in its financial records to the underlying accounting records and reports provided to and from grantor and oversight agencies. Conditon: General ledgers for the City’s Community Development Block Grant (CDBG), Home Investment Partnership Grant (HOME), Housing Opportunities for Persons with AIDS (HOPWA) and Emergency Shelter Grant (ESG) funds do not always close certain current activity accounts to grant reserves for proper carryforward. In addition, certain general ledger receivable and other accounts remain from prior years that should be investigated for proper disposition. Effect: Accounts in the CDBG Trust Fund may require adjustments and possibly funding to reconcile and adjust for prior year remnant discrepancy. Cause: The remaining discrepancies were carried forward from prior years when the City did not reconcile the City’s financial records to the IDIS system. Context: The City has incorporated a process of reconciling current year IDIS System drawdowns and activity to its general ledger. Certain legacy receivable and other account balances remain in the City’s general ledger, carrying forward from prior year activity when the City did not properly reconcile general ledgers to IDIS System activity (previously reported as material weaknesses in significant deficiencies). Whereas this finding has been repeated annually from 2011 to 2020 as a material weakness and 2021 as a significant deficiency, it has been downgraded to a matter of compliance and other. Additional reconciliation is required to correct the remaining discrepancies carried forward from prior years. Recommendation: The City should continue with reconciling IDIS System drawdowns and activity to its general and subsidiary ledgers. The City should investigate discrepancies carried forward from prior years for proper disposition. Views of Responsible Officials of the City (unaudited): The Chief Financial Officer will continue to oversee this project to close out the old accounts in a timely manner and make sure all systems are reconciled. Internal controls have been set into place to ensure future compliance. The Comptroller will train and continue to work closely with personnel in charge of reporting and processing IDIS and vouchers drawdowns. The Division of Accounts & Control will continue to maintain a sub-ledger to ensure IDIS and the City’s financial system tie out prior to the processing of any payments, and each payment request will require an IDIS activity reference number in order to be processed. Monthly reconciliation of funds has been implemented and copies are sent to US HUD on a monthly basis. In addition, the City has hired a 3rd party grant consultant to help navigate and strengthen our overall processes.
Finding 2022-006
Criteria: Sound accounting policies suggest that the City is required to reconcile and compare information reported in its financial records to the underlying accounting records and reports provided to and from grantor and oversight agencies. Conditon: General ledgers for the City’s Community Development Block Grant (CDBG), Home Investment Partnership Grant (HOME), Housing Opportunities for Persons with AIDS (HOPWA) and Emergency Shelter Grant (ESG) funds do not always close certain current activity accounts to grant reserves for proper carryforward. In addition, certain general ledger receivable and other accounts remain from prior years that should be investigated for proper disposition. Effect: Accounts in the CDBG Trust Fund may require adjustments and possibly funding to reconcile and adjust for prior year remnant discrepancy. Cause: The remaining discrepancies were carried forward from prior years when the City did not reconcile the City’s financial records to the IDIS system. Context: The City has incorporated a process of reconciling current year IDIS System drawdowns and activity to its general ledger. Certain legacy receivable and other account balances remain in the City’s general ledger, carrying forward from prior year activity when the City did not properly reconcile general ledgers to IDIS System activity (previously reported as material weaknesses in significant deficiencies). Whereas this finding has been repeated annually from 2011 to 2020 as a material weakness and 2021 as a significant deficiency, it has been downgraded to a matter of compliance and other. Additional reconciliation is required to correct the remaining discrepancies carried forward from prior years. Recommendation: The City should continue with reconciling IDIS System drawdowns and activity to its general and subsidiary ledgers. The City should investigate discrepancies carried forward from prior years for proper disposition. Views of Responsible Officials of the City (unaudited): The Chief Financial Officer will continue to oversee this project to close out the old accounts in a timely manner and make sure all systems are reconciled. Internal controls have been set into place to ensure future compliance. The Comptroller will train and continue to work closely with personnel in charge of reporting and processing IDIS and vouchers drawdowns. The Division of Accounts & Control will continue to maintain a sub-ledger to ensure IDIS and the City’s financial system tie out prior to the processing of any payments, and each payment request will require an IDIS activity reference number in order to be processed. Monthly reconciliation of funds has been implemented and copies are sent to US HUD on a monthly basis. In addition, the City has hired a 3rd party grant consultant to help navigate and strengthen our overall processes.
Finding 2022-007
Criteria or Specific Requirement: All Federal agencies administering programs subject to Davis-Bacon wage provisions are required by Department of Labor (DOL) regulations (29 CFR 5.7(b)) to submit a report of all new covered contracts and all enforcement activities each six months. In order for HUD to comply with this requirement, it must collect contract and enforcement information from local agencies that administer HUD-assisted programs subject to Davis-Bacon requirements. HUD requires that local agencies complete and submit a Semi-annual Enforcement Report each six months within ten (10) days after the end of the reporting period. Reporting periods run from October 1 through March 31 and April 1 through September 30. Condition: Davis-Bacon reports were not filed within 10 days of the reporting period as required by HUD. 2022 reports were not filed until July 27, 2023. Effect or Potential Effect: The City is not in compliance with HUD requirements regarding the timeliness of Davis-Bacon reporting. Cause: Staffing changes likely contributed to the City not timely filing these reports. Contet: Auditor request for proof of submission of these reports determined they were not submitted for the audit year 2022. Questioned Costs: Not applicable. Recommendation: The City should submit required Davis-Bacon reports as required by HUD within 10 days of the end of each reporting period. Views of Responsible Officials of the City (unaudited): The CFO will work with Departmental Fiscal Officers and grant management staff to ensure that Davis-Bacon reports are filed on a timely basis.
Finding 2022-007
Criteria or Specific Requirement: All Federal agencies administering programs subject to Davis-Bacon wage provisions are required by Department of Labor (DOL) regulations (29 CFR 5.7(b)) to submit a report of all new covered contracts and all enforcement activities each six months. In order for HUD to comply with this requirement, it must collect contract and enforcement information from local agencies that administer HUD-assisted programs subject to Davis-Bacon requirements. HUD requires that local agencies complete and submit a Semi-annual Enforcement Report each six months within ten (10) days after the end of the reporting period. Reporting periods run from October 1 through March 31 and April 1 through September 30. Condition: Davis-Bacon reports were not filed within 10 days of the reporting period as required by HUD. 2022 reports were not filed until July 27, 2023. Effect or Potential Effect: The City is not in compliance with HUD requirements regarding the timeliness of Davis-Bacon reporting. Cause: Staffing changes likely contributed to the City not timely filing these reports. Contet: Auditor request for proof of submission of these reports determined they were not submitted for the audit year 2022. Questioned Costs: Not applicable. Recommendation: The City should submit required Davis-Bacon reports as required by HUD within 10 days of the end of each reporting period. Views of Responsible Officials of the City (unaudited): The CFO will work with Departmental Fiscal Officers and grant management staff to ensure that Davis-Bacon reports are filed on a timely basis.
Finding 2022-007
Criteria or Specific Requirement: All Federal agencies administering programs subject to Davis-Bacon wage provisions are required by Department of Labor (DOL) regulations (29 CFR 5.7(b)) to submit a report of all new covered contracts and all enforcement activities each six months. In order for HUD to comply with this requirement, it must collect contract and enforcement information from local agencies that administer HUD-assisted programs subject to Davis-Bacon requirements. HUD requires that local agencies complete and submit a Semi-annual Enforcement Report each six months within ten (10) days after the end of the reporting period. Reporting periods run from October 1 through March 31 and April 1 through September 30. Condition: Davis-Bacon reports were not filed within 10 days of the reporting period as required by HUD. 2022 reports were not filed until July 27, 2023. Effect or Potential Effect: The City is not in compliance with HUD requirements regarding the timeliness of Davis-Bacon reporting. Cause: Staffing changes likely contributed to the City not timely filing these reports. Contet: Auditor request for proof of submission of these reports determined they were not submitted for the audit year 2022. Questioned Costs: Not applicable. Recommendation: The City should submit required Davis-Bacon reports as required by HUD within 10 days of the end of each reporting period. Views of Responsible Officials of the City (unaudited): The CFO will work with Departmental Fiscal Officers and grant management staff to ensure that Davis-Bacon reports are filed on a timely basis.
Finding 2022-008
Criteria or Specific Requirement: As confirmed by the 2022 Compliance Supplement, 44 CFR sections 206.200 through 206.349 requires submission of SF-425 Federal Financial Reports for recipients of FEMA Public Disaster Grants. Condition: The City cannot provide proof of submission of SF-425 Federal Financial Reports for FEMA Public Assistance Disaster grants. Effect or Potential Effect: The City is not in compliance with FEMA requirements regarding the timeliness of filing SF-425 Federal Financial Reports. Cause: The cause is not readily determinable. Context: Auditor request for proof of submission of these reports determined they were either not submitted for the audit year 2022, or the City could not access proof of submission. Questioned Costs: Not applicable. Recommendation: The City should submit SF-425 Federal Financial Reports for all FEMA Public Disaster Grants. Views of Responsible Officials of the City (unaudited): The CFO will work with Departmental Fiscal Officers and grant management staff to ensure that SF-425 reports are filed on a timely basis.
Finding 2022-008
Criteria or Specific Requirement: As confirmed by the 2022 Compliance Supplement, 44 CFR sections 206.200 through 206.349 requires submission of SF-425 Federal Financial Reports for recipients of FEMA Public Disaster Grants. Condition: The City cannot provide proof of submission of SF-425 Federal Financial Reports for FEMA Public Assistance Disaster grants. Effect or Potential Effect: The City is not in compliance with FEMA requirements regarding the timeliness of filing SF-425 Federal Financial Reports. Cause: The cause is not readily determinable. Context: Auditor request for proof of submission of these reports determined they were either not submitted for the audit year 2022, or the City could not access proof of submission. Questioned Costs: Not applicable. Recommendation: The City should submit SF-425 Federal Financial Reports for all FEMA Public Disaster Grants. Views of Responsible Officials of the City (unaudited): The CFO will work with Departmental Fiscal Officers and grant management staff to ensure that SF-425 reports are filed on a timely basis.
Finding 2022-006
Criteria: Sound accounting policies suggest that the City is required to reconcile and compare information reported in its financial records to the underlying accounting records and reports provided to and from grantor and oversight agencies. Conditon: General ledgers for the City’s Community Development Block Grant (CDBG), Home Investment Partnership Grant (HOME), Housing Opportunities for Persons with AIDS (HOPWA) and Emergency Shelter Grant (ESG) funds do not always close certain current activity accounts to grant reserves for proper carryforward. In addition, certain general ledger receivable and other accounts remain from prior years that should be investigated for proper disposition. Effect: Accounts in the CDBG Trust Fund may require adjustments and possibly funding to reconcile and adjust for prior year remnant discrepancy. Cause: The remaining discrepancies were carried forward from prior years when the City did not reconcile the City’s financial records to the IDIS system. Context: The City has incorporated a process of reconciling current year IDIS System drawdowns and activity to its general ledger. Certain legacy receivable and other account balances remain in the City’s general ledger, carrying forward from prior year activity when the City did not properly reconcile general ledgers to IDIS System activity (previously reported as material weaknesses in significant deficiencies). Whereas this finding has been repeated annually from 2011 to 2020 as a material weakness and 2021 as a significant deficiency, it has been downgraded to a matter of compliance and other. Additional reconciliation is required to correct the remaining discrepancies carried forward from prior years. Recommendation: The City should continue with reconciling IDIS System drawdowns and activity to its general and subsidiary ledgers. The City should investigate discrepancies carried forward from prior years for proper disposition. Views of Responsible Officials of the City (unaudited): The Chief Financial Officer will continue to oversee this project to close out the old accounts in a timely manner and make sure all systems are reconciled. Internal controls have been set into place to ensure future compliance. The Comptroller will train and continue to work closely with personnel in charge of reporting and processing IDIS and vouchers drawdowns. The Division of Accounts & Control will continue to maintain a sub-ledger to ensure IDIS and the City’s financial system tie out prior to the processing of any payments, and each payment request will require an IDIS activity reference number in order to be processed. Monthly reconciliation of funds has been implemented and copies are sent to US HUD on a monthly basis. In addition, the City has hired a 3rd party grant consultant to help navigate and strengthen our overall processes.
Finding 2022-006
Criteria: Sound accounting policies suggest that the City is required to reconcile and compare information reported in its financial records to the underlying accounting records and reports provided to and from grantor and oversight agencies. Conditon: General ledgers for the City’s Community Development Block Grant (CDBG), Home Investment Partnership Grant (HOME), Housing Opportunities for Persons with AIDS (HOPWA) and Emergency Shelter Grant (ESG) funds do not always close certain current activity accounts to grant reserves for proper carryforward. In addition, certain general ledger receivable and other accounts remain from prior years that should be investigated for proper disposition. Effect: Accounts in the CDBG Trust Fund may require adjustments and possibly funding to reconcile and adjust for prior year remnant discrepancy. Cause: The remaining discrepancies were carried forward from prior years when the City did not reconcile the City’s financial records to the IDIS system. Context: The City has incorporated a process of reconciling current year IDIS System drawdowns and activity to its general ledger. Certain legacy receivable and other account balances remain in the City’s general ledger, carrying forward from prior year activity when the City did not properly reconcile general ledgers to IDIS System activity (previously reported as material weaknesses in significant deficiencies). Whereas this finding has been repeated annually from 2011 to 2020 as a material weakness and 2021 as a significant deficiency, it has been downgraded to a matter of compliance and other. Additional reconciliation is required to correct the remaining discrepancies carried forward from prior years. Recommendation: The City should continue with reconciling IDIS System drawdowns and activity to its general and subsidiary ledgers. The City should investigate discrepancies carried forward from prior years for proper disposition. Views of Responsible Officials of the City (unaudited): The Chief Financial Officer will continue to oversee this project to close out the old accounts in a timely manner and make sure all systems are reconciled. Internal controls have been set into place to ensure future compliance. The Comptroller will train and continue to work closely with personnel in charge of reporting and processing IDIS and vouchers drawdowns. The Division of Accounts & Control will continue to maintain a sub-ledger to ensure IDIS and the City’s financial system tie out prior to the processing of any payments, and each payment request will require an IDIS activity reference number in order to be processed. Monthly reconciliation of funds has been implemented and copies are sent to US HUD on a monthly basis. In addition, the City has hired a 3rd party grant consultant to help navigate and strengthen our overall processes.
Finding 2022-006
Criteria: Sound accounting policies suggest that the City is required to reconcile and compare information reported in its financial records to the underlying accounting records and reports provided to and from grantor and oversight agencies. Conditon: General ledgers for the City’s Community Development Block Grant (CDBG), Home Investment Partnership Grant (HOME), Housing Opportunities for Persons with AIDS (HOPWA) and Emergency Shelter Grant (ESG) funds do not always close certain current activity accounts to grant reserves for proper carryforward. In addition, certain general ledger receivable and other accounts remain from prior years that should be investigated for proper disposition. Effect: Accounts in the CDBG Trust Fund may require adjustments and possibly funding to reconcile and adjust for prior year remnant discrepancy. Cause: The remaining discrepancies were carried forward from prior years when the City did not reconcile the City’s financial records to the IDIS system. Context: The City has incorporated a process of reconciling current year IDIS System drawdowns and activity to its general ledger. Certain legacy receivable and other account balances remain in the City’s general ledger, carrying forward from prior year activity when the City did not properly reconcile general ledgers to IDIS System activity (previously reported as material weaknesses in significant deficiencies). Whereas this finding has been repeated annually from 2011 to 2020 as a material weakness and 2021 as a significant deficiency, it has been downgraded to a matter of compliance and other. Additional reconciliation is required to correct the remaining discrepancies carried forward from prior years. Recommendation: The City should continue with reconciling IDIS System drawdowns and activity to its general and subsidiary ledgers. The City should investigate discrepancies carried forward from prior years for proper disposition. Views of Responsible Officials of the City (unaudited): The Chief Financial Officer will continue to oversee this project to close out the old accounts in a timely manner and make sure all systems are reconciled. Internal controls have been set into place to ensure future compliance. The Comptroller will train and continue to work closely with personnel in charge of reporting and processing IDIS and vouchers drawdowns. The Division of Accounts & Control will continue to maintain a sub-ledger to ensure IDIS and the City’s financial system tie out prior to the processing of any payments, and each payment request will require an IDIS activity reference number in order to be processed. Monthly reconciliation of funds has been implemented and copies are sent to US HUD on a monthly basis. In addition, the City has hired a 3rd party grant consultant to help navigate and strengthen our overall processes.
Finding 2022-006
Criteria: Sound accounting policies suggest that the City is required to reconcile and compare information reported in its financial records to the underlying accounting records and reports provided to and from grantor and oversight agencies. Conditon: General ledgers for the City’s Community Development Block Grant (CDBG), Home Investment Partnership Grant (HOME), Housing Opportunities for Persons with AIDS (HOPWA) and Emergency Shelter Grant (ESG) funds do not always close certain current activity accounts to grant reserves for proper carryforward. In addition, certain general ledger receivable and other accounts remain from prior years that should be investigated for proper disposition. Effect: Accounts in the CDBG Trust Fund may require adjustments and possibly funding to reconcile and adjust for prior year remnant discrepancy. Cause: The remaining discrepancies were carried forward from prior years when the City did not reconcile the City’s financial records to the IDIS system. Context: The City has incorporated a process of reconciling current year IDIS System drawdowns and activity to its general ledger. Certain legacy receivable and other account balances remain in the City’s general ledger, carrying forward from prior year activity when the City did not properly reconcile general ledgers to IDIS System activity (previously reported as material weaknesses in significant deficiencies). Whereas this finding has been repeated annually from 2011 to 2020 as a material weakness and 2021 as a significant deficiency, it has been downgraded to a matter of compliance and other. Additional reconciliation is required to correct the remaining discrepancies carried forward from prior years. Recommendation: The City should continue with reconciling IDIS System drawdowns and activity to its general and subsidiary ledgers. The City should investigate discrepancies carried forward from prior years for proper disposition. Views of Responsible Officials of the City (unaudited): The Chief Financial Officer will continue to oversee this project to close out the old accounts in a timely manner and make sure all systems are reconciled. Internal controls have been set into place to ensure future compliance. The Comptroller will train and continue to work closely with personnel in charge of reporting and processing IDIS and vouchers drawdowns. The Division of Accounts & Control will continue to maintain a sub-ledger to ensure IDIS and the City’s financial system tie out prior to the processing of any payments, and each payment request will require an IDIS activity reference number in order to be processed. Monthly reconciliation of funds has been implemented and copies are sent to US HUD on a monthly basis. In addition, the City has hired a 3rd party grant consultant to help navigate and strengthen our overall processes.
Finding 2022-006
Criteria: Sound accounting policies suggest that the City is required to reconcile and compare information reported in its financial records to the underlying accounting records and reports provided to and from grantor and oversight agencies. Conditon: General ledgers for the City’s Community Development Block Grant (CDBG), Home Investment Partnership Grant (HOME), Housing Opportunities for Persons with AIDS (HOPWA) and Emergency Shelter Grant (ESG) funds do not always close certain current activity accounts to grant reserves for proper carryforward. In addition, certain general ledger receivable and other accounts remain from prior years that should be investigated for proper disposition. Effect: Accounts in the CDBG Trust Fund may require adjustments and possibly funding to reconcile and adjust for prior year remnant discrepancy. Cause: The remaining discrepancies were carried forward from prior years when the City did not reconcile the City’s financial records to the IDIS system. Context: The City has incorporated a process of reconciling current year IDIS System drawdowns and activity to its general ledger. Certain legacy receivable and other account balances remain in the City’s general ledger, carrying forward from prior year activity when the City did not properly reconcile general ledgers to IDIS System activity (previously reported as material weaknesses in significant deficiencies). Whereas this finding has been repeated annually from 2011 to 2020 as a material weakness and 2021 as a significant deficiency, it has been downgraded to a matter of compliance and other. Additional reconciliation is required to correct the remaining discrepancies carried forward from prior years. Recommendation: The City should continue with reconciling IDIS System drawdowns and activity to its general and subsidiary ledgers. The City should investigate discrepancies carried forward from prior years for proper disposition. Views of Responsible Officials of the City (unaudited): The Chief Financial Officer will continue to oversee this project to close out the old accounts in a timely manner and make sure all systems are reconciled. Internal controls have been set into place to ensure future compliance. The Comptroller will train and continue to work closely with personnel in charge of reporting and processing IDIS and vouchers drawdowns. The Division of Accounts & Control will continue to maintain a sub-ledger to ensure IDIS and the City’s financial system tie out prior to the processing of any payments, and each payment request will require an IDIS activity reference number in order to be processed. Monthly reconciliation of funds has been implemented and copies are sent to US HUD on a monthly basis. In addition, the City has hired a 3rd party grant consultant to help navigate and strengthen our overall processes.
Finding 2022-006
Criteria: Sound accounting policies suggest that the City is required to reconcile and compare information reported in its financial records to the underlying accounting records and reports provided to and from grantor and oversight agencies. Conditon: General ledgers for the City’s Community Development Block Grant (CDBG), Home Investment Partnership Grant (HOME), Housing Opportunities for Persons with AIDS (HOPWA) and Emergency Shelter Grant (ESG) funds do not always close certain current activity accounts to grant reserves for proper carryforward. In addition, certain general ledger receivable and other accounts remain from prior years that should be investigated for proper disposition. Effect: Accounts in the CDBG Trust Fund may require adjustments and possibly funding to reconcile and adjust for prior year remnant discrepancy. Cause: The remaining discrepancies were carried forward from prior years when the City did not reconcile the City’s financial records to the IDIS system. Context: The City has incorporated a process of reconciling current year IDIS System drawdowns and activity to its general ledger. Certain legacy receivable and other account balances remain in the City’s general ledger, carrying forward from prior year activity when the City did not properly reconcile general ledgers to IDIS System activity (previously reported as material weaknesses in significant deficiencies). Whereas this finding has been repeated annually from 2011 to 2020 as a material weakness and 2021 as a significant deficiency, it has been downgraded to a matter of compliance and other. Additional reconciliation is required to correct the remaining discrepancies carried forward from prior years. Recommendation: The City should continue with reconciling IDIS System drawdowns and activity to its general and subsidiary ledgers. The City should investigate discrepancies carried forward from prior years for proper disposition. Views of Responsible Officials of the City (unaudited): The Chief Financial Officer will continue to oversee this project to close out the old accounts in a timely manner and make sure all systems are reconciled. Internal controls have been set into place to ensure future compliance. The Comptroller will train and continue to work closely with personnel in charge of reporting and processing IDIS and vouchers drawdowns. The Division of Accounts & Control will continue to maintain a sub-ledger to ensure IDIS and the City’s financial system tie out prior to the processing of any payments, and each payment request will require an IDIS activity reference number in order to be processed. Monthly reconciliation of funds has been implemented and copies are sent to US HUD on a monthly basis. In addition, the City has hired a 3rd party grant consultant to help navigate and strengthen our overall processes.
Finding 2022-006
Criteria: Sound accounting policies suggest that the City is required to reconcile and compare information reported in its financial records to the underlying accounting records and reports provided to and from grantor and oversight agencies. Conditon: General ledgers for the City’s Community Development Block Grant (CDBG), Home Investment Partnership Grant (HOME), Housing Opportunities for Persons with AIDS (HOPWA) and Emergency Shelter Grant (ESG) funds do not always close certain current activity accounts to grant reserves for proper carryforward. In addition, certain general ledger receivable and other accounts remain from prior years that should be investigated for proper disposition. Effect: Accounts in the CDBG Trust Fund may require adjustments and possibly funding to reconcile and adjust for prior year remnant discrepancy. Cause: The remaining discrepancies were carried forward from prior years when the City did not reconcile the City’s financial records to the IDIS system. Context: The City has incorporated a process of reconciling current year IDIS System drawdowns and activity to its general ledger. Certain legacy receivable and other account balances remain in the City’s general ledger, carrying forward from prior year activity when the City did not properly reconcile general ledgers to IDIS System activity (previously reported as material weaknesses in significant deficiencies). Whereas this finding has been repeated annually from 2011 to 2020 as a material weakness and 2021 as a significant deficiency, it has been downgraded to a matter of compliance and other. Additional reconciliation is required to correct the remaining discrepancies carried forward from prior years. Recommendation: The City should continue with reconciling IDIS System drawdowns and activity to its general and subsidiary ledgers. The City should investigate discrepancies carried forward from prior years for proper disposition. Views of Responsible Officials of the City (unaudited): The Chief Financial Officer will continue to oversee this project to close out the old accounts in a timely manner and make sure all systems are reconciled. Internal controls have been set into place to ensure future compliance. The Comptroller will train and continue to work closely with personnel in charge of reporting and processing IDIS and vouchers drawdowns. The Division of Accounts & Control will continue to maintain a sub-ledger to ensure IDIS and the City’s financial system tie out prior to the processing of any payments, and each payment request will require an IDIS activity reference number in order to be processed. Monthly reconciliation of funds has been implemented and copies are sent to US HUD on a monthly basis. In addition, the City has hired a 3rd party grant consultant to help navigate and strengthen our overall processes.
Finding 2022-006
Criteria: Sound accounting policies suggest that the City is required to reconcile and compare information reported in its financial records to the underlying accounting records and reports provided to and from grantor and oversight agencies. Conditon: General ledgers for the City’s Community Development Block Grant (CDBG), Home Investment Partnership Grant (HOME), Housing Opportunities for Persons with AIDS (HOPWA) and Emergency Shelter Grant (ESG) funds do not always close certain current activity accounts to grant reserves for proper carryforward. In addition, certain general ledger receivable and other accounts remain from prior years that should be investigated for proper disposition. Effect: Accounts in the CDBG Trust Fund may require adjustments and possibly funding to reconcile and adjust for prior year remnant discrepancy. Cause: The remaining discrepancies were carried forward from prior years when the City did not reconcile the City’s financial records to the IDIS system. Context: The City has incorporated a process of reconciling current year IDIS System drawdowns and activity to its general ledger. Certain legacy receivable and other account balances remain in the City’s general ledger, carrying forward from prior year activity when the City did not properly reconcile general ledgers to IDIS System activity (previously reported as material weaknesses in significant deficiencies). Whereas this finding has been repeated annually from 2011 to 2020 as a material weakness and 2021 as a significant deficiency, it has been downgraded to a matter of compliance and other. Additional reconciliation is required to correct the remaining discrepancies carried forward from prior years. Recommendation: The City should continue with reconciling IDIS System drawdowns and activity to its general and subsidiary ledgers. The City should investigate discrepancies carried forward from prior years for proper disposition. Views of Responsible Officials of the City (unaudited): The Chief Financial Officer will continue to oversee this project to close out the old accounts in a timely manner and make sure all systems are reconciled. Internal controls have been set into place to ensure future compliance. The Comptroller will train and continue to work closely with personnel in charge of reporting and processing IDIS and vouchers drawdowns. The Division of Accounts & Control will continue to maintain a sub-ledger to ensure IDIS and the City’s financial system tie out prior to the processing of any payments, and each payment request will require an IDIS activity reference number in order to be processed. Monthly reconciliation of funds has been implemented and copies are sent to US HUD on a monthly basis. In addition, the City has hired a 3rd party grant consultant to help navigate and strengthen our overall processes.
Finding 2022-007
Criteria or Specific Requirement: All Federal agencies administering programs subject to Davis-Bacon wage provisions are required by Department of Labor (DOL) regulations (29 CFR 5.7(b)) to submit a report of all new covered contracts and all enforcement activities each six months. In order for HUD to comply with this requirement, it must collect contract and enforcement information from local agencies that administer HUD-assisted programs subject to Davis-Bacon requirements. HUD requires that local agencies complete and submit a Semi-annual Enforcement Report each six months within ten (10) days after the end of the reporting period. Reporting periods run from October 1 through March 31 and April 1 through September 30. Condition: Davis-Bacon reports were not filed within 10 days of the reporting period as required by HUD. 2022 reports were not filed until July 27, 2023. Effect or Potential Effect: The City is not in compliance with HUD requirements regarding the timeliness of Davis-Bacon reporting. Cause: Staffing changes likely contributed to the City not timely filing these reports. Contet: Auditor request for proof of submission of these reports determined they were not submitted for the audit year 2022. Questioned Costs: Not applicable. Recommendation: The City should submit required Davis-Bacon reports as required by HUD within 10 days of the end of each reporting period. Views of Responsible Officials of the City (unaudited): The CFO will work with Departmental Fiscal Officers and grant management staff to ensure that Davis-Bacon reports are filed on a timely basis.
Finding 2022-007
Criteria or Specific Requirement: All Federal agencies administering programs subject to Davis-Bacon wage provisions are required by Department of Labor (DOL) regulations (29 CFR 5.7(b)) to submit a report of all new covered contracts and all enforcement activities each six months. In order for HUD to comply with this requirement, it must collect contract and enforcement information from local agencies that administer HUD-assisted programs subject to Davis-Bacon requirements. HUD requires that local agencies complete and submit a Semi-annual Enforcement Report each six months within ten (10) days after the end of the reporting period. Reporting periods run from October 1 through March 31 and April 1 through September 30. Condition: Davis-Bacon reports were not filed within 10 days of the reporting period as required by HUD. 2022 reports were not filed until July 27, 2023. Effect or Potential Effect: The City is not in compliance with HUD requirements regarding the timeliness of Davis-Bacon reporting. Cause: Staffing changes likely contributed to the City not timely filing these reports. Contet: Auditor request for proof of submission of these reports determined they were not submitted for the audit year 2022. Questioned Costs: Not applicable. Recommendation: The City should submit required Davis-Bacon reports as required by HUD within 10 days of the end of each reporting period. Views of Responsible Officials of the City (unaudited): The CFO will work with Departmental Fiscal Officers and grant management staff to ensure that Davis-Bacon reports are filed on a timely basis.
Finding 2022-007
Criteria or Specific Requirement: All Federal agencies administering programs subject to Davis-Bacon wage provisions are required by Department of Labor (DOL) regulations (29 CFR 5.7(b)) to submit a report of all new covered contracts and all enforcement activities each six months. In order for HUD to comply with this requirement, it must collect contract and enforcement information from local agencies that administer HUD-assisted programs subject to Davis-Bacon requirements. HUD requires that local agencies complete and submit a Semi-annual Enforcement Report each six months within ten (10) days after the end of the reporting period. Reporting periods run from October 1 through March 31 and April 1 through September 30. Condition: Davis-Bacon reports were not filed within 10 days of the reporting period as required by HUD. 2022 reports were not filed until July 27, 2023. Effect or Potential Effect: The City is not in compliance with HUD requirements regarding the timeliness of Davis-Bacon reporting. Cause: Staffing changes likely contributed to the City not timely filing these reports. Contet: Auditor request for proof of submission of these reports determined they were not submitted for the audit year 2022. Questioned Costs: Not applicable. Recommendation: The City should submit required Davis-Bacon reports as required by HUD within 10 days of the end of each reporting period. Views of Responsible Officials of the City (unaudited): The CFO will work with Departmental Fiscal Officers and grant management staff to ensure that Davis-Bacon reports are filed on a timely basis.
Finding 2022-008
Criteria or Specific Requirement: As confirmed by the 2022 Compliance Supplement, 44 CFR sections 206.200 through 206.349 requires submission of SF-425 Federal Financial Reports for recipients of FEMA Public Disaster Grants. Condition: The City cannot provide proof of submission of SF-425 Federal Financial Reports for FEMA Public Assistance Disaster grants. Effect or Potential Effect: The City is not in compliance with FEMA requirements regarding the timeliness of filing SF-425 Federal Financial Reports. Cause: The cause is not readily determinable. Context: Auditor request for proof of submission of these reports determined they were either not submitted for the audit year 2022, or the City could not access proof of submission. Questioned Costs: Not applicable. Recommendation: The City should submit SF-425 Federal Financial Reports for all FEMA Public Disaster Grants. Views of Responsible Officials of the City (unaudited): The CFO will work with Departmental Fiscal Officers and grant management staff to ensure that SF-425 reports are filed on a timely basis.
Finding 2022-008
Criteria or Specific Requirement: As confirmed by the 2022 Compliance Supplement, 44 CFR sections 206.200 through 206.349 requires submission of SF-425 Federal Financial Reports for recipients of FEMA Public Disaster Grants. Condition: The City cannot provide proof of submission of SF-425 Federal Financial Reports for FEMA Public Assistance Disaster grants. Effect or Potential Effect: The City is not in compliance with FEMA requirements regarding the timeliness of filing SF-425 Federal Financial Reports. Cause: The cause is not readily determinable. Context: Auditor request for proof of submission of these reports determined they were either not submitted for the audit year 2022, or the City could not access proof of submission. Questioned Costs: Not applicable. Recommendation: The City should submit SF-425 Federal Financial Reports for all FEMA Public Disaster Grants. Views of Responsible Officials of the City (unaudited): The CFO will work with Departmental Fiscal Officers and grant management staff to ensure that SF-425 reports are filed on a timely basis.