Audit 315556

FY End
2023-12-31
Total Expended
$28.16M
Findings
2
Programs
33
Organization: City of Aurora, Colorado (CO)
Year: 2023 Accepted: 2024-07-22

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
479033 2023-001 - - B
1055475 2023-001 - - B

Programs

ALN Program Spent Major Findings
20.933 National Infrastructure Investments $7.59M Yes 0
14.218 Community Development Block Grants/entitlement Grants $1.65M Yes 0
21.026 Homeowner Assistance Fund $992,958 Yes 0
14.231 Covid 19 Emergency Solutions Grant Program $986,424 - 0
95.001 High Intensity Drug Trafficking Areas Program $625,457 - 0
14.231 Emergency Solutions Grant Program $312,096 - 0
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $228,401 - 0
16.741 Dna Backlog Reduction Program $165,993 - 0
59.037 Small Business Development Centers $160,000 - 0
97.067 Homeland Security Grant Program $151,240 - 0
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $142,562 - 0
14.218 Covid 19 Community Development Block Grants/entitlement Grants $139,207 Yes 0
16.922 Equitable Sharing Program $130,295 - 0
97.044 Assistance to Firefighters Grant $113,901 - 0
16.543 Missing Children's Assistance $110,436 - 0
97.132 Financial Assistance for Countering Violent Extremism $103,122 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $87,312 - 0
97.042 Emergency Management Performance Grants $48,839 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $42,648 Yes 0
20.616 National Priority Safety Programs $36,804 - 0
16.607 Bulletproof Vest Partnership Program $24,432 - 0
14.239 Home Investment Partnerships Program $21,078 - 0
20.600 State and Community Highway Safety $21,059 - 0
16.609 Project Safe Neighborhoods $12,846 - 0
93.575 Child Care and Development Block Grant $10,329 - 0
20.205 Highway Planning and Construction $10,206 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $7,967 - 0
93.434 Every Student Succeeds Act/preschool Development Grants $6,750 - 0
14.169 Housing Counseling Assistance Program $5,752 - 0
17.529 Workforce Innovation and Opportunity Act $3,871 - 0
21.023 Emergency Rental Assistance Program $2,794 - 0
97.025 National Urban Search and Rescue (us&r) Response System $431 - 0
97.083 Staffing for Adequate Fire and Emergency Response (safer) $-200,948 - 0

Contacts

Name Title Type
KVZATDBDECG8 Nancy Wishmeyer Auditee
3037397789 Marcella Ardan Auditor
No contacts on file

Notes to SEFA

Title: Pass-Through Entity Identifying Number Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the primary government of the City of Aurora, Colorado (the City). The City’s reporting entity is defined in Note 1 of the City’s basic financial statements for the year ended December 31, 2023. The information in this Schedule is 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). Because this 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 in net position or cash flows of the City. The schedule of expenditures of federal awards includes federally funded projects received directly from federal agencies and the federal amount of pass-through awards received by the City through the State of Colorado or other non-federal entities. Expenditures reported on the Schedule are recognized on the accrual or modified accrual basis of accounting. The City’s summary of significant accounting policies is presented in Note 1 to the City’s basic financial statements for the year ended December 31, 2023. 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. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements or reports to federal agencies. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior periods. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance For federal awards expended by the City as a subrecipient, the Schedule includes identification of the pass-through grantor and the identifying number assigned to the grant by the pass through grantor where the pass-through grantor has supplied such number to the City.
Title: Revolving Loan Funds – Not Subject to Compliance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the primary government of the City of Aurora, Colorado (the City). The City’s reporting entity is defined in Note 1 of the City’s basic financial statements for the year ended December 31, 2023. The information in this Schedule is 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). Because this 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 in net position or cash flows of the City. The schedule of expenditures of federal awards includes federally funded projects received directly from federal agencies and the federal amount of pass-through awards received by the City through the State of Colorado or other non-federal entities. Expenditures reported on the Schedule are recognized on the accrual or modified accrual basis of accounting. The City’s summary of significant accounting policies is presented in Note 1 to the City’s basic financial statements for the year ended December 31, 2023. 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. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements or reports to federal agencies. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior periods. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance The City has certain revolving loan funds, which were originally financed with federal financial assistance through the Community Development Block Grant Program, the HOME Investment Partnership Program and the Brownfields Grant Program. The outstanding balances of these loan funds at December 31, 2023 were $2,926,104 for the Community Development Block Grant Program, $14,064,867 for the HOME Investment Partnership Program, and $855,993 for the Brownfields Grant Program. Since there are no continuing compliance requirements other than continued loan payments, the outstanding loan balances have not been included in the Schedule. New loans made during the year under these programs are included in the Schedule.
Title: Noncash Awards – Equipment Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the primary government of the City of Aurora, Colorado (the City). The City’s reporting entity is defined in Note 1 of the City’s basic financial statements for the year ended December 31, 2023. The information in this Schedule is 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). Because this 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 in net position or cash flows of the City. The schedule of expenditures of federal awards includes federally funded projects received directly from federal agencies and the federal amount of pass-through awards received by the City through the State of Colorado or other non-federal entities. Expenditures reported on the Schedule are recognized on the accrual or modified accrual basis of accounting. The City’s summary of significant accounting policies is presented in Note 1 to the City’s basic financial statements for the year ended December 31, 2023. 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. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements or reports to federal agencies. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior periods. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance The City received equipment that was purchased with Urban Area Security Initiative funds by Arapahoe County. The amount reported on the schedule is the value of the property on the date it was received by the City and priced by Arapahoe County.

Finding Details

Finding: Allowable Costs Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Sponsoring Agency: Department of Treasury Sponsoring Award Number: None provided Award Year: 2021 "Criteria: Per the Coronavirus State and Local Fiscal Recovery Fund (SLFRF) Final Rule and Frequently Asked Questions, recipients may use SLFRF funds for various reasons including respoinding to the Public Health Emergency and negative economic impacts from the pandemic, which includes bolstering the public sector capacity and workforce such as payroll and covered benefits for employees of a recipient government for the portion of the employee's time spent responding to COVID-19. " Condition: The City of Aurora (the City) charged payroll and benefits for one employee subsequent to time in which the employee no longer was working on COVID-19 related projects for the City. Questioned Costs: $22,602 Context: The City charged three employees payroll and benefits to the SLFRF program for at total of $299,169. We compared 100% of the payroll to underlying employee contracts and cost allocation reports and noted one employee's payroll and benefits should have been charged to the SLFRF program from January to September 9, 2023, however all payroll through December 2023 was charged to the program. Effect: Unallowable costs were charged to the SLFRF program. Failure to ensure compliance with federal requirements for the SLFRF program program requirements could result in disallowed costs and federal sanctions, including the termination of the federal program. Cause: The City did not have proper internal controls in place to identify and communicate the change in employees job duties. In addition, the City's time and effort certifications happen on an annual basis which does not provide adqueate time to correct changes in employees job functions/allocations of cost. Identification as a repeat finding: Not Applicable Recommendation: We recommend City staff implement internal controls to identify changes in employee job duties and allocations of costs. In addition, we recommend the City increase the frequency of time and effort certifications in order to identify changes on a more timely basis. Views of Responsible Officials and Planned Corrective Actions: The City agrees with the finding. See separate report for planned corrective actions.
Finding: Allowable Costs Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Sponsoring Agency: Department of Treasury Sponsoring Award Number: None provided Award Year: 2021 "Criteria: Per the Coronavirus State and Local Fiscal Recovery Fund (SLFRF) Final Rule and Frequently Asked Questions, recipients may use SLFRF funds for various reasons including respoinding to the Public Health Emergency and negative economic impacts from the pandemic, which includes bolstering the public sector capacity and workforce such as payroll and covered benefits for employees of a recipient government for the portion of the employee's time spent responding to COVID-19. " Condition: The City of Aurora (the City) charged payroll and benefits for one employee subsequent to time in which the employee no longer was working on COVID-19 related projects for the City. Questioned Costs: $22,602 Context: The City charged three employees payroll and benefits to the SLFRF program for at total of $299,169. We compared 100% of the payroll to underlying employee contracts and cost allocation reports and noted one employee's payroll and benefits should have been charged to the SLFRF program from January to September 9, 2023, however all payroll through December 2023 was charged to the program. Effect: Unallowable costs were charged to the SLFRF program. Failure to ensure compliance with federal requirements for the SLFRF program program requirements could result in disallowed costs and federal sanctions, including the termination of the federal program. Cause: The City did not have proper internal controls in place to identify and communicate the change in employees job duties. In addition, the City's time and effort certifications happen on an annual basis which does not provide adqueate time to correct changes in employees job functions/allocations of cost. Identification as a repeat finding: Not Applicable Recommendation: We recommend City staff implement internal controls to identify changes in employee job duties and allocations of costs. In addition, we recommend the City increase the frequency of time and effort certifications in order to identify changes on a more timely basis. Views of Responsible Officials and Planned Corrective Actions: The City agrees with the finding. See separate report for planned corrective actions.