Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grant/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-20-MC-06-0555, B-20-MW-06-0555, B21-MC-06-0555 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Starting in federal fiscal year 2021, Entitlement Communities, Insular Areas, and non-Entitlement Counties in Hawaii are required to complete the Cash on Hand Quarterly Report (PR29) and submit it to the grantee?s HUD local field office through IDIS. Field offices will review the report for completeness and accuracy. The reporting frequency is the same as required of the SF-425, quarterly. The Quarterly Cash on Hand report must be submitted to the respective field office within 30 days after the end of the reporting period. The following federal fiscal year quarter reporting periods will be used for all quarterly reports. Reporting Period (End Date)/Due Date of Report (See Schedule of Findings and Questioned Costs for chart/table) September 30, 2021/October 30, 2021 December 31, 2021/January 30, 2022 March 31, 2022/April 30, 2022 June 30, 2022/July 30, 2022 Condition: During the audit, we noticed that three out of four quarters the PR29 for CDBG and CDBG CV were not filed within the deadline, as shown below: Reporting Period (End Date)/Due Date of Report/Submission Date (See Schedule of Findings and Questioned Costs for chart/table) September 30, 2021/October 30, 2021/January 3, 2022 December 31, 2021/January 30, 2022/April 26, 2022 June 30, 2022/July 30, 2022/September 20, 2022 Cause: Monitoring control is lacking to ensure timely submission of the required reports. Effect or Potential Effect: The City was not in compliance with the program?s reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommend the City to follow the Uniform Guidance to ensure that the reports are prepared and submitted timely. Views of Responsible Officials: Management recognizes the importance of filling reports timely, especially with Federal funding such as CDBG and HOME. In regards to the PR29 ?Cash on Hand? reports, the City was ? and continues to ? dealing with reconciling program inc. from the past fifteen years. Staff were having difficulty tracking a large amount of program income, and how it was spent, which directly impacted the City?s ability to provide accurate PR 29 reports. Needless to say, this research took considerable time and effort, causing slight delays in posting the ?Cash on Hand? reports. Moving forward Staff will strive to submit the reports by the required deadline and will work with their third-party consultant to assist as necessary. Staff has been in contact with its HUD representatives about the program income issue as well as the difficulty in posting PR 29 reports. Management feels strongly that this relationship with the City?s HUD representatives provides opportunities for improved communication on these and related issues.
Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grant/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-20-MC-06-0555, B-20-MW-06-0555, B21-MC-06-0555 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Starting in federal fiscal year 2021, Entitlement Communities, Insular Areas, and non-Entitlement Counties in Hawaii are required to complete the Cash on Hand Quarterly Report (PR29) and submit it to the grantee?s HUD local field office through IDIS. Field offices will review the report for completeness and accuracy. The reporting frequency is the same as required of the SF-425, quarterly. The Quarterly Cash on Hand report must be submitted to the respective field office within 30 days after the end of the reporting period. The following federal fiscal year quarter reporting periods will be used for all quarterly reports. Reporting Period (End Date)/Due Date of Report (See Schedule of Findings and Questioned Costs for chart/table) September 30, 2021/October 30, 2021 December 31, 2021/January 30, 2022 March 31, 2022/April 30, 2022 June 30, 2022/July 30, 2022 Condition: During the audit, we noticed that three out of four quarters the PR29 for CDBG and CDBG CV were not filed within the deadline, as shown below: Reporting Period (End Date)/Due Date of Report/Submission Date (See Schedule of Findings and Questioned Costs for chart/table) September 30, 2021/October 30, 2021/January 3, 2022 December 31, 2021/January 30, 2022/April 26, 2022 June 30, 2022/July 30, 2022/September 20, 2022 Cause: Monitoring control is lacking to ensure timely submission of the required reports. Effect or Potential Effect: The City was not in compliance with the program?s reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommend the City to follow the Uniform Guidance to ensure that the reports are prepared and submitted timely. Views of Responsible Officials: Management recognizes the importance of filling reports timely, especially with Federal funding such as CDBG and HOME. In regards to the PR29 ?Cash on Hand? reports, the City was ? and continues to ? dealing with reconciling program inc. from the past fifteen years. Staff were having difficulty tracking a large amount of program income, and how it was spent, which directly impacted the City?s ability to provide accurate PR 29 reports. Needless to say, this research took considerable time and effort, causing slight delays in posting the ?Cash on Hand? reports. Moving forward Staff will strive to submit the reports by the required deadline and will work with their third-party consultant to assist as necessary. Staff has been in contact with its HUD representatives about the program income issue as well as the difficulty in posting PR 29 reports. Management feels strongly that this relationship with the City?s HUD representatives provides opportunities for improved communication on these and related issues.
Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grant/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-20-MC-06-0555, B-20-MW-06-0555, B21-MC-06-0555 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Starting in federal fiscal year 2021, Entitlement Communities, Insular Areas, and non-Entitlement Counties in Hawaii are required to complete the Cash on Hand Quarterly Report (PR29) and submit it to the grantee?s HUD local field office through IDIS. Field offices will review the report for completeness and accuracy. The reporting frequency is the same as required of the SF-425, quarterly. The Quarterly Cash on Hand report must be submitted to the respective field office within 30 days after the end of the reporting period. The following federal fiscal year quarter reporting periods will be used for all quarterly reports. Reporting Period (End Date)/Due Date of Report (See Schedule of Findings and Questioned Costs for chart/table) September 30, 2021/October 30, 2021 December 31, 2021/January 30, 2022 March 31, 2022/April 30, 2022 June 30, 2022/July 30, 2022 Condition: During the audit, we noticed that three out of four quarters the PR29 for CDBG and CDBG CV were not filed within the deadline, as shown below: Reporting Period (End Date)/Due Date of Report/Submission Date (See Schedule of Findings and Questioned Costs for chart/table) September 30, 2021/October 30, 2021/January 3, 2022 December 31, 2021/January 30, 2022/April 26, 2022 June 30, 2022/July 30, 2022/September 20, 2022 Cause: Monitoring control is lacking to ensure timely submission of the required reports. Effect or Potential Effect: The City was not in compliance with the program?s reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommend the City to follow the Uniform Guidance to ensure that the reports are prepared and submitted timely. Views of Responsible Officials: Management recognizes the importance of filling reports timely, especially with Federal funding such as CDBG and HOME. In regards to the PR29 ?Cash on Hand? reports, the City was ? and continues to ? dealing with reconciling program inc. from the past fifteen years. Staff were having difficulty tracking a large amount of program income, and how it was spent, which directly impacted the City?s ability to provide accurate PR 29 reports. Needless to say, this research took considerable time and effort, causing slight delays in posting the ?Cash on Hand? reports. Moving forward Staff will strive to submit the reports by the required deadline and will work with their third-party consultant to assist as necessary. Staff has been in contact with its HUD representatives about the program income issue as well as the difficulty in posting PR 29 reports. Management feels strongly that this relationship with the City?s HUD representatives provides opportunities for improved communication on these and related issues.
Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2017-149-00; CA-90-Z085-00; CA-90-Y974-00; CA -2019-033-00; CA -90-Y900-00; CA-2020-177-00; CA-2021-169-01; CA-2022-041-00; CA-2021-075-00 Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Entity: N/A Federal Award Identification Number: 1505-0271 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): In accordance with 2 CFR ?200.303 Internal Controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under ?200.302 Financial Management, (b) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Under ?200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition: During the audit, we could not verify if the Bus Operators? and Police Officers? timecards were properly approved by their supervisors. The timecard reports were uploaded from the time entry system to the payroll module by the supervisors; however, there were no records on who reviewed the timecard reports or completed the upload of the timecard reports to the payroll module. Additionally, 8 out of 25 Police Officers? personnel action forms could not be located. Cause: The Bus Line and Police Departments did not have formal policies and procedures over the timecard approval process. There was also ineffective monitoring of human resources processes, including the maintenance of personnel action forms. Effect or Potential Effect: Without approved personnel action forms and review or approval of time cards, inaccurate payroll expenditures could be charged to the federal programs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City adopt formal policies and procedures on the documentation of timecard approval process for the Bus Line and Police Departments. The City should also implement regular monitoring and conduct periodic reviews of personnel files to verify the presence and completeness of personnel action forms. Views of Responsible Officials: Management has reviewed the payroll/timecard approval process. The City utilizes New World Systems eSuites for employees to enter their bi-weekly hours, and for employees and supervisors to approve timesheets. However, not all employees can utilize eSuites, as the requirements for timekeeping for Bus Operators, Police and Fire personnel is such that separate timekeeping systems must be maintained and utilized. To that end, staff has initiated a process whereby ? for employees not using eSuites ? manual review and approval of bi-weekly hours is conducted by supervisors in the appropriate department (i.e., Transit, Police, etc.). Management believes this additional review and approval level will provide the necessary back-up to improve internal control over timecards/timekeeping.
Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2017-149-00; CA-90-Z085-00; CA-90-Y974-00; CA -2019-033-00; CA -90-Y900-00; CA-2020-177-00; CA-2021-169-01; CA-2022-041-00; CA-2021-075-00 Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Entity: N/A Federal Award Identification Number: 1505-0271 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): In accordance with 2 CFR ?200.303 Internal Controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under ?200.302 Financial Management, (b) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Under ?200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition: During the audit, we could not verify if the Bus Operators? and Police Officers? timecards were properly approved by their supervisors. The timecard reports were uploaded from the time entry system to the payroll module by the supervisors; however, there were no records on who reviewed the timecard reports or completed the upload of the timecard reports to the payroll module. Additionally, 8 out of 25 Police Officers? personnel action forms could not be located. Cause: The Bus Line and Police Departments did not have formal policies and procedures over the timecard approval process. There was also ineffective monitoring of human resources processes, including the maintenance of personnel action forms. Effect or Potential Effect: Without approved personnel action forms and review or approval of time cards, inaccurate payroll expenditures could be charged to the federal programs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City adopt formal policies and procedures on the documentation of timecard approval process for the Bus Line and Police Departments. The City should also implement regular monitoring and conduct periodic reviews of personnel files to verify the presence and completeness of personnel action forms. Views of Responsible Officials: Management has reviewed the payroll/timecard approval process. The City utilizes New World Systems eSuites for employees to enter their bi-weekly hours, and for employees and supervisors to approve timesheets. However, not all employees can utilize eSuites, as the requirements for timekeeping for Bus Operators, Police and Fire personnel is such that separate timekeeping systems must be maintained and utilized. To that end, staff has initiated a process whereby ? for employees not using eSuites ? manual review and approval of bi-weekly hours is conducted by supervisors in the appropriate department (i.e., Transit, Police, etc.). Management believes this additional review and approval level will provide the necessary back-up to improve internal control over timecards/timekeeping.
Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2017-149-00; CA-90-Z085-00; CA-90-Y974-00; CA -2019-033-00; CA -90-Y900-00; CA-2020-177-00; CA-2021-169-01; CA-2022-041-00; CA-2021-075-00 Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Entity: N/A Federal Award Identification Number: 1505-0271 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): In accordance with 2 CFR ?200.303 Internal Controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under ?200.302 Financial Management, (b) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Under ?200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition: During the audit, we could not verify if the Bus Operators? and Police Officers? timecards were properly approved by their supervisors. The timecard reports were uploaded from the time entry system to the payroll module by the supervisors; however, there were no records on who reviewed the timecard reports or completed the upload of the timecard reports to the payroll module. Additionally, 8 out of 25 Police Officers? personnel action forms could not be located. Cause: The Bus Line and Police Departments did not have formal policies and procedures over the timecard approval process. There was also ineffective monitoring of human resources processes, including the maintenance of personnel action forms. Effect or Potential Effect: Without approved personnel action forms and review or approval of time cards, inaccurate payroll expenditures could be charged to the federal programs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City adopt formal policies and procedures on the documentation of timecard approval process for the Bus Line and Police Departments. The City should also implement regular monitoring and conduct periodic reviews of personnel files to verify the presence and completeness of personnel action forms. Views of Responsible Officials: Management has reviewed the payroll/timecard approval process. The City utilizes New World Systems eSuites for employees to enter their bi-weekly hours, and for employees and supervisors to approve timesheets. However, not all employees can utilize eSuites, as the requirements for timekeeping for Bus Operators, Police and Fire personnel is such that separate timekeeping systems must be maintained and utilized. To that end, staff has initiated a process whereby ? for employees not using eSuites ? manual review and approval of bi-weekly hours is conducted by supervisors in the appropriate department (i.e., Transit, Police, etc.). Management believes this additional review and approval level will provide the necessary back-up to improve internal control over timecards/timekeeping.
Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2017-149-00; CA-90-Z085-00; CA-90-Y974-00; CA -2019-033-00; CA -90-Y900-00; CA-2020-177-00; CA-2021-169-01; CA-2022-041-00; CA-2021-075-00 Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Entity: N/A Federal Award Identification Number: 1505-0271 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): In accordance with 2 CFR ?200.303 Internal Controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under ?200.302 Financial Management, (b) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Under ?200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition: During the audit, we could not verify if the Bus Operators? and Police Officers? timecards were properly approved by their supervisors. The timecard reports were uploaded from the time entry system to the payroll module by the supervisors; however, there were no records on who reviewed the timecard reports or completed the upload of the timecard reports to the payroll module. Additionally, 8 out of 25 Police Officers? personnel action forms could not be located. Cause: The Bus Line and Police Departments did not have formal policies and procedures over the timecard approval process. There was also ineffective monitoring of human resources processes, including the maintenance of personnel action forms. Effect or Potential Effect: Without approved personnel action forms and review or approval of time cards, inaccurate payroll expenditures could be charged to the federal programs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City adopt formal policies and procedures on the documentation of timecard approval process for the Bus Line and Police Departments. The City should also implement regular monitoring and conduct periodic reviews of personnel files to verify the presence and completeness of personnel action forms. Views of Responsible Officials: Management has reviewed the payroll/timecard approval process. The City utilizes New World Systems eSuites for employees to enter their bi-weekly hours, and for employees and supervisors to approve timesheets. However, not all employees can utilize eSuites, as the requirements for timekeeping for Bus Operators, Police and Fire personnel is such that separate timekeeping systems must be maintained and utilized. To that end, staff has initiated a process whereby ? for employees not using eSuites ? manual review and approval of bi-weekly hours is conducted by supervisors in the appropriate department (i.e., Transit, Police, etc.). Management believes this additional review and approval level will provide the necessary back-up to improve internal control over timecards/timekeeping.
Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2017-149-00; CA-90-Z085-00; CA-90-Y974-00; CA -2019-033-00; CA -90-Y900-00; CA-2020-177-00; CA-2021-169-01; CA-2022-041-00; CA-2021-075-00 Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Entity: N/A Federal Award Identification Number: 1505-0271 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): In accordance with 2 CFR ?200.303 Internal Controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under ?200.302 Financial Management, (b) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Under ?200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition: During the audit, we could not verify if the Bus Operators? and Police Officers? timecards were properly approved by their supervisors. The timecard reports were uploaded from the time entry system to the payroll module by the supervisors; however, there were no records on who reviewed the timecard reports or completed the upload of the timecard reports to the payroll module. Additionally, 8 out of 25 Police Officers? personnel action forms could not be located. Cause: The Bus Line and Police Departments did not have formal policies and procedures over the timecard approval process. There was also ineffective monitoring of human resources processes, including the maintenance of personnel action forms. Effect or Potential Effect: Without approved personnel action forms and review or approval of time cards, inaccurate payroll expenditures could be charged to the federal programs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City adopt formal policies and procedures on the documentation of timecard approval process for the Bus Line and Police Departments. The City should also implement regular monitoring and conduct periodic reviews of personnel files to verify the presence and completeness of personnel action forms. Views of Responsible Officials: Management has reviewed the payroll/timecard approval process. The City utilizes New World Systems eSuites for employees to enter their bi-weekly hours, and for employees and supervisors to approve timesheets. However, not all employees can utilize eSuites, as the requirements for timekeeping for Bus Operators, Police and Fire personnel is such that separate timekeeping systems must be maintained and utilized. To that end, staff has initiated a process whereby ? for employees not using eSuites ? manual review and approval of bi-weekly hours is conducted by supervisors in the appropriate department (i.e., Transit, Police, etc.). Management believes this additional review and approval level will provide the necessary back-up to improve internal control over timecards/timekeeping.
Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2017-149-00; CA-90-Z085-00; CA-90-Y974-00; CA -2019-033-00; CA -90-Y900-00; CA-2020-177-00; CA-2021-169-01; CA-2022-041-00; CA-2021-075-00 Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Entity: N/A Federal Award Identification Number: 1505-0271 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): In accordance with 2 CFR ?200.303 Internal Controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under ?200.302 Financial Management, (b) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Under ?200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition: During the audit, we could not verify if the Bus Operators? and Police Officers? timecards were properly approved by their supervisors. The timecard reports were uploaded from the time entry system to the payroll module by the supervisors; however, there were no records on who reviewed the timecard reports or completed the upload of the timecard reports to the payroll module. Additionally, 8 out of 25 Police Officers? personnel action forms could not be located. Cause: The Bus Line and Police Departments did not have formal policies and procedures over the timecard approval process. There was also ineffective monitoring of human resources processes, including the maintenance of personnel action forms. Effect or Potential Effect: Without approved personnel action forms and review or approval of time cards, inaccurate payroll expenditures could be charged to the federal programs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City adopt formal policies and procedures on the documentation of timecard approval process for the Bus Line and Police Departments. The City should also implement regular monitoring and conduct periodic reviews of personnel files to verify the presence and completeness of personnel action forms. Views of Responsible Officials: Management has reviewed the payroll/timecard approval process. The City utilizes New World Systems eSuites for employees to enter their bi-weekly hours, and for employees and supervisors to approve timesheets. However, not all employees can utilize eSuites, as the requirements for timekeeping for Bus Operators, Police and Fire personnel is such that separate timekeeping systems must be maintained and utilized. To that end, staff has initiated a process whereby ? for employees not using eSuites ? manual review and approval of bi-weekly hours is conducted by supervisors in the appropriate department (i.e., Transit, Police, etc.). Management believes this additional review and approval level will provide the necessary back-up to improve internal control over timecards/timekeeping.
Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2017-149-00; CA-90-Z085-00; CA-90-Y974-00; CA -2019-033-00; CA -90-Y900-00; CA-2020-177-00; CA-2021-169-01; CA-2022-041-00; CA-2021-075-00 Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Entity: N/A Federal Award Identification Number: 1505-0271 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): In accordance with 2 CFR ?200.303 Internal Controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under ?200.302 Financial Management, (b) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Under ?200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition: During the audit, we could not verify if the Bus Operators? and Police Officers? timecards were properly approved by their supervisors. The timecard reports were uploaded from the time entry system to the payroll module by the supervisors; however, there were no records on who reviewed the timecard reports or completed the upload of the timecard reports to the payroll module. Additionally, 8 out of 25 Police Officers? personnel action forms could not be located. Cause: The Bus Line and Police Departments did not have formal policies and procedures over the timecard approval process. There was also ineffective monitoring of human resources processes, including the maintenance of personnel action forms. Effect or Potential Effect: Without approved personnel action forms and review or approval of time cards, inaccurate payroll expenditures could be charged to the federal programs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City adopt formal policies and procedures on the documentation of timecard approval process for the Bus Line and Police Departments. The City should also implement regular monitoring and conduct periodic reviews of personnel files to verify the presence and completeness of personnel action forms. Views of Responsible Officials: Management has reviewed the payroll/timecard approval process. The City utilizes New World Systems eSuites for employees to enter their bi-weekly hours, and for employees and supervisors to approve timesheets. However, not all employees can utilize eSuites, as the requirements for timekeeping for Bus Operators, Police and Fire personnel is such that separate timekeeping systems must be maintained and utilized. To that end, staff has initiated a process whereby ? for employees not using eSuites ? manual review and approval of bi-weekly hours is conducted by supervisors in the appropriate department (i.e., Transit, Police, etc.). Management believes this additional review and approval level will provide the necessary back-up to improve internal control over timecards/timekeeping.
Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2017-149-00; CA-90-Z085-00; CA-90-Y974-00; CA -2019-033-00; CA -90-Y900-00; CA-2020-177-00; CA-2021-169-01; CA-2022-041-00; CA-2021-075-00 Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Entity: N/A Federal Award Identification Number: 1505-0271 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): In accordance with 2 CFR ?200.303 Internal Controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under ?200.302 Financial Management, (b) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Under ?200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition: During the audit, we could not verify if the Bus Operators? and Police Officers? timecards were properly approved by their supervisors. The timecard reports were uploaded from the time entry system to the payroll module by the supervisors; however, there were no records on who reviewed the timecard reports or completed the upload of the timecard reports to the payroll module. Additionally, 8 out of 25 Police Officers? personnel action forms could not be located. Cause: The Bus Line and Police Departments did not have formal policies and procedures over the timecard approval process. There was also ineffective monitoring of human resources processes, including the maintenance of personnel action forms. Effect or Potential Effect: Without approved personnel action forms and review or approval of time cards, inaccurate payroll expenditures could be charged to the federal programs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City adopt formal policies and procedures on the documentation of timecard approval process for the Bus Line and Police Departments. The City should also implement regular monitoring and conduct periodic reviews of personnel files to verify the presence and completeness of personnel action forms. Views of Responsible Officials: Management has reviewed the payroll/timecard approval process. The City utilizes New World Systems eSuites for employees to enter their bi-weekly hours, and for employees and supervisors to approve timesheets. However, not all employees can utilize eSuites, as the requirements for timekeeping for Bus Operators, Police and Fire personnel is such that separate timekeeping systems must be maintained and utilized. To that end, staff has initiated a process whereby ? for employees not using eSuites ? manual review and approval of bi-weekly hours is conducted by supervisors in the appropriate department (i.e., Transit, Police, etc.). Management believes this additional review and approval level will provide the necessary back-up to improve internal control over timecards/timekeeping.
Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2017-149-00; CA-90-Z085-00; CA-90-Y974-00; CA -2019-033-00; CA -90-Y900-00; CA-2020-177-00; CA-2021-169-01; CA-2022-041-00; CA-2021-075-00 Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Entity: N/A Federal Award Identification Number: 1505-0271 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): In accordance with 2 CFR ?200.303 Internal Controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under ?200.302 Financial Management, (b) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Under ?200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition: During the audit, we could not verify if the Bus Operators? and Police Officers? timecards were properly approved by their supervisors. The timecard reports were uploaded from the time entry system to the payroll module by the supervisors; however, there were no records on who reviewed the timecard reports or completed the upload of the timecard reports to the payroll module. Additionally, 8 out of 25 Police Officers? personnel action forms could not be located. Cause: The Bus Line and Police Departments did not have formal policies and procedures over the timecard approval process. There was also ineffective monitoring of human resources processes, including the maintenance of personnel action forms. Effect or Potential Effect: Without approved personnel action forms and review or approval of time cards, inaccurate payroll expenditures could be charged to the federal programs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City adopt formal policies and procedures on the documentation of timecard approval process for the Bus Line and Police Departments. The City should also implement regular monitoring and conduct periodic reviews of personnel files to verify the presence and completeness of personnel action forms. Views of Responsible Officials: Management has reviewed the payroll/timecard approval process. The City utilizes New World Systems eSuites for employees to enter their bi-weekly hours, and for employees and supervisors to approve timesheets. However, not all employees can utilize eSuites, as the requirements for timekeeping for Bus Operators, Police and Fire personnel is such that separate timekeeping systems must be maintained and utilized. To that end, staff has initiated a process whereby ? for employees not using eSuites ? manual review and approval of bi-weekly hours is conducted by supervisors in the appropriate department (i.e., Transit, Police, etc.). Management believes this additional review and approval level will provide the necessary back-up to improve internal control over timecards/timekeeping.
Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grant/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-20-MC-06-0555, B-20-MW-06-0555, B21-MC-06-0555 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Starting in federal fiscal year 2021, Entitlement Communities, Insular Areas, and non-Entitlement Counties in Hawaii are required to complete the Cash on Hand Quarterly Report (PR29) and submit it to the grantee?s HUD local field office through IDIS. Field offices will review the report for completeness and accuracy. The reporting frequency is the same as required of the SF-425, quarterly. The Quarterly Cash on Hand report must be submitted to the respective field office within 30 days after the end of the reporting period. The following federal fiscal year quarter reporting periods will be used for all quarterly reports. Reporting Period (End Date)/Due Date of Report (See Schedule of Findings and Questioned Costs for chart/table) September 30, 2021/October 30, 2021 December 31, 2021/January 30, 2022 March 31, 2022/April 30, 2022 June 30, 2022/July 30, 2022 Condition: During the audit, we noticed that three out of four quarters the PR29 for CDBG and CDBG CV were not filed within the deadline, as shown below: Reporting Period (End Date)/Due Date of Report/Submission Date (See Schedule of Findings and Questioned Costs for chart/table) September 30, 2021/October 30, 2021/January 3, 2022 December 31, 2021/January 30, 2022/April 26, 2022 June 30, 2022/July 30, 2022/September 20, 2022 Cause: Monitoring control is lacking to ensure timely submission of the required reports. Effect or Potential Effect: The City was not in compliance with the program?s reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommend the City to follow the Uniform Guidance to ensure that the reports are prepared and submitted timely. Views of Responsible Officials: Management recognizes the importance of filling reports timely, especially with Federal funding such as CDBG and HOME. In regards to the PR29 ?Cash on Hand? reports, the City was ? and continues to ? dealing with reconciling program inc. from the past fifteen years. Staff were having difficulty tracking a large amount of program income, and how it was spent, which directly impacted the City?s ability to provide accurate PR 29 reports. Needless to say, this research took considerable time and effort, causing slight delays in posting the ?Cash on Hand? reports. Moving forward Staff will strive to submit the reports by the required deadline and will work with their third-party consultant to assist as necessary. Staff has been in contact with its HUD representatives about the program income issue as well as the difficulty in posting PR 29 reports. Management feels strongly that this relationship with the City?s HUD representatives provides opportunities for improved communication on these and related issues.
Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grant/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-20-MC-06-0555, B-20-MW-06-0555, B21-MC-06-0555 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Starting in federal fiscal year 2021, Entitlement Communities, Insular Areas, and non-Entitlement Counties in Hawaii are required to complete the Cash on Hand Quarterly Report (PR29) and submit it to the grantee?s HUD local field office through IDIS. Field offices will review the report for completeness and accuracy. The reporting frequency is the same as required of the SF-425, quarterly. The Quarterly Cash on Hand report must be submitted to the respective field office within 30 days after the end of the reporting period. The following federal fiscal year quarter reporting periods will be used for all quarterly reports. Reporting Period (End Date)/Due Date of Report (See Schedule of Findings and Questioned Costs for chart/table) September 30, 2021/October 30, 2021 December 31, 2021/January 30, 2022 March 31, 2022/April 30, 2022 June 30, 2022/July 30, 2022 Condition: During the audit, we noticed that three out of four quarters the PR29 for CDBG and CDBG CV were not filed within the deadline, as shown below: Reporting Period (End Date)/Due Date of Report/Submission Date (See Schedule of Findings and Questioned Costs for chart/table) September 30, 2021/October 30, 2021/January 3, 2022 December 31, 2021/January 30, 2022/April 26, 2022 June 30, 2022/July 30, 2022/September 20, 2022 Cause: Monitoring control is lacking to ensure timely submission of the required reports. Effect or Potential Effect: The City was not in compliance with the program?s reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommend the City to follow the Uniform Guidance to ensure that the reports are prepared and submitted timely. Views of Responsible Officials: Management recognizes the importance of filling reports timely, especially with Federal funding such as CDBG and HOME. In regards to the PR29 ?Cash on Hand? reports, the City was ? and continues to ? dealing with reconciling program inc. from the past fifteen years. Staff were having difficulty tracking a large amount of program income, and how it was spent, which directly impacted the City?s ability to provide accurate PR 29 reports. Needless to say, this research took considerable time and effort, causing slight delays in posting the ?Cash on Hand? reports. Moving forward Staff will strive to submit the reports by the required deadline and will work with their third-party consultant to assist as necessary. Staff has been in contact with its HUD representatives about the program income issue as well as the difficulty in posting PR 29 reports. Management feels strongly that this relationship with the City?s HUD representatives provides opportunities for improved communication on these and related issues.
Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grant/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-20-MC-06-0555, B-20-MW-06-0555, B21-MC-06-0555 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Starting in federal fiscal year 2021, Entitlement Communities, Insular Areas, and non-Entitlement Counties in Hawaii are required to complete the Cash on Hand Quarterly Report (PR29) and submit it to the grantee?s HUD local field office through IDIS. Field offices will review the report for completeness and accuracy. The reporting frequency is the same as required of the SF-425, quarterly. The Quarterly Cash on Hand report must be submitted to the respective field office within 30 days after the end of the reporting period. The following federal fiscal year quarter reporting periods will be used for all quarterly reports. Reporting Period (End Date)/Due Date of Report (See Schedule of Findings and Questioned Costs for chart/table) September 30, 2021/October 30, 2021 December 31, 2021/January 30, 2022 March 31, 2022/April 30, 2022 June 30, 2022/July 30, 2022 Condition: During the audit, we noticed that three out of four quarters the PR29 for CDBG and CDBG CV were not filed within the deadline, as shown below: Reporting Period (End Date)/Due Date of Report/Submission Date (See Schedule of Findings and Questioned Costs for chart/table) September 30, 2021/October 30, 2021/January 3, 2022 December 31, 2021/January 30, 2022/April 26, 2022 June 30, 2022/July 30, 2022/September 20, 2022 Cause: Monitoring control is lacking to ensure timely submission of the required reports. Effect or Potential Effect: The City was not in compliance with the program?s reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommend the City to follow the Uniform Guidance to ensure that the reports are prepared and submitted timely. Views of Responsible Officials: Management recognizes the importance of filling reports timely, especially with Federal funding such as CDBG and HOME. In regards to the PR29 ?Cash on Hand? reports, the City was ? and continues to ? dealing with reconciling program inc. from the past fifteen years. Staff were having difficulty tracking a large amount of program income, and how it was spent, which directly impacted the City?s ability to provide accurate PR 29 reports. Needless to say, this research took considerable time and effort, causing slight delays in posting the ?Cash on Hand? reports. Moving forward Staff will strive to submit the reports by the required deadline and will work with their third-party consultant to assist as necessary. Staff has been in contact with its HUD representatives about the program income issue as well as the difficulty in posting PR 29 reports. Management feels strongly that this relationship with the City?s HUD representatives provides opportunities for improved communication on these and related issues.
Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2017-149-00; CA-90-Z085-00; CA-90-Y974-00; CA -2019-033-00; CA -90-Y900-00; CA-2020-177-00; CA-2021-169-01; CA-2022-041-00; CA-2021-075-00 Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Entity: N/A Federal Award Identification Number: 1505-0271 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): In accordance with 2 CFR ?200.303 Internal Controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under ?200.302 Financial Management, (b) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Under ?200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition: During the audit, we could not verify if the Bus Operators? and Police Officers? timecards were properly approved by their supervisors. The timecard reports were uploaded from the time entry system to the payroll module by the supervisors; however, there were no records on who reviewed the timecard reports or completed the upload of the timecard reports to the payroll module. Additionally, 8 out of 25 Police Officers? personnel action forms could not be located. Cause: The Bus Line and Police Departments did not have formal policies and procedures over the timecard approval process. There was also ineffective monitoring of human resources processes, including the maintenance of personnel action forms. Effect or Potential Effect: Without approved personnel action forms and review or approval of time cards, inaccurate payroll expenditures could be charged to the federal programs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City adopt formal policies and procedures on the documentation of timecard approval process for the Bus Line and Police Departments. The City should also implement regular monitoring and conduct periodic reviews of personnel files to verify the presence and completeness of personnel action forms. Views of Responsible Officials: Management has reviewed the payroll/timecard approval process. The City utilizes New World Systems eSuites for employees to enter their bi-weekly hours, and for employees and supervisors to approve timesheets. However, not all employees can utilize eSuites, as the requirements for timekeeping for Bus Operators, Police and Fire personnel is such that separate timekeeping systems must be maintained and utilized. To that end, staff has initiated a process whereby ? for employees not using eSuites ? manual review and approval of bi-weekly hours is conducted by supervisors in the appropriate department (i.e., Transit, Police, etc.). Management believes this additional review and approval level will provide the necessary back-up to improve internal control over timecards/timekeeping.
Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2017-149-00; CA-90-Z085-00; CA-90-Y974-00; CA -2019-033-00; CA -90-Y900-00; CA-2020-177-00; CA-2021-169-01; CA-2022-041-00; CA-2021-075-00 Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Entity: N/A Federal Award Identification Number: 1505-0271 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): In accordance with 2 CFR ?200.303 Internal Controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under ?200.302 Financial Management, (b) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Under ?200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition: During the audit, we could not verify if the Bus Operators? and Police Officers? timecards were properly approved by their supervisors. The timecard reports were uploaded from the time entry system to the payroll module by the supervisors; however, there were no records on who reviewed the timecard reports or completed the upload of the timecard reports to the payroll module. Additionally, 8 out of 25 Police Officers? personnel action forms could not be located. Cause: The Bus Line and Police Departments did not have formal policies and procedures over the timecard approval process. There was also ineffective monitoring of human resources processes, including the maintenance of personnel action forms. Effect or Potential Effect: Without approved personnel action forms and review or approval of time cards, inaccurate payroll expenditures could be charged to the federal programs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City adopt formal policies and procedures on the documentation of timecard approval process for the Bus Line and Police Departments. The City should also implement regular monitoring and conduct periodic reviews of personnel files to verify the presence and completeness of personnel action forms. Views of Responsible Officials: Management has reviewed the payroll/timecard approval process. The City utilizes New World Systems eSuites for employees to enter their bi-weekly hours, and for employees and supervisors to approve timesheets. However, not all employees can utilize eSuites, as the requirements for timekeeping for Bus Operators, Police and Fire personnel is such that separate timekeeping systems must be maintained and utilized. To that end, staff has initiated a process whereby ? for employees not using eSuites ? manual review and approval of bi-weekly hours is conducted by supervisors in the appropriate department (i.e., Transit, Police, etc.). Management believes this additional review and approval level will provide the necessary back-up to improve internal control over timecards/timekeeping.
Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2017-149-00; CA-90-Z085-00; CA-90-Y974-00; CA -2019-033-00; CA -90-Y900-00; CA-2020-177-00; CA-2021-169-01; CA-2022-041-00; CA-2021-075-00 Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Entity: N/A Federal Award Identification Number: 1505-0271 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): In accordance with 2 CFR ?200.303 Internal Controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under ?200.302 Financial Management, (b) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Under ?200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition: During the audit, we could not verify if the Bus Operators? and Police Officers? timecards were properly approved by their supervisors. The timecard reports were uploaded from the time entry system to the payroll module by the supervisors; however, there were no records on who reviewed the timecard reports or completed the upload of the timecard reports to the payroll module. Additionally, 8 out of 25 Police Officers? personnel action forms could not be located. Cause: The Bus Line and Police Departments did not have formal policies and procedures over the timecard approval process. There was also ineffective monitoring of human resources processes, including the maintenance of personnel action forms. Effect or Potential Effect: Without approved personnel action forms and review or approval of time cards, inaccurate payroll expenditures could be charged to the federal programs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City adopt formal policies and procedures on the documentation of timecard approval process for the Bus Line and Police Departments. The City should also implement regular monitoring and conduct periodic reviews of personnel files to verify the presence and completeness of personnel action forms. Views of Responsible Officials: Management has reviewed the payroll/timecard approval process. The City utilizes New World Systems eSuites for employees to enter their bi-weekly hours, and for employees and supervisors to approve timesheets. However, not all employees can utilize eSuites, as the requirements for timekeeping for Bus Operators, Police and Fire personnel is such that separate timekeeping systems must be maintained and utilized. To that end, staff has initiated a process whereby ? for employees not using eSuites ? manual review and approval of bi-weekly hours is conducted by supervisors in the appropriate department (i.e., Transit, Police, etc.). Management believes this additional review and approval level will provide the necessary back-up to improve internal control over timecards/timekeeping.
Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2017-149-00; CA-90-Z085-00; CA-90-Y974-00; CA -2019-033-00; CA -90-Y900-00; CA-2020-177-00; CA-2021-169-01; CA-2022-041-00; CA-2021-075-00 Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Entity: N/A Federal Award Identification Number: 1505-0271 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): In accordance with 2 CFR ?200.303 Internal Controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under ?200.302 Financial Management, (b) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Under ?200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition: During the audit, we could not verify if the Bus Operators? and Police Officers? timecards were properly approved by their supervisors. The timecard reports were uploaded from the time entry system to the payroll module by the supervisors; however, there were no records on who reviewed the timecard reports or completed the upload of the timecard reports to the payroll module. Additionally, 8 out of 25 Police Officers? personnel action forms could not be located. Cause: The Bus Line and Police Departments did not have formal policies and procedures over the timecard approval process. There was also ineffective monitoring of human resources processes, including the maintenance of personnel action forms. Effect or Potential Effect: Without approved personnel action forms and review or approval of time cards, inaccurate payroll expenditures could be charged to the federal programs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City adopt formal policies and procedures on the documentation of timecard approval process for the Bus Line and Police Departments. The City should also implement regular monitoring and conduct periodic reviews of personnel files to verify the presence and completeness of personnel action forms. Views of Responsible Officials: Management has reviewed the payroll/timecard approval process. The City utilizes New World Systems eSuites for employees to enter their bi-weekly hours, and for employees and supervisors to approve timesheets. However, not all employees can utilize eSuites, as the requirements for timekeeping for Bus Operators, Police and Fire personnel is such that separate timekeeping systems must be maintained and utilized. To that end, staff has initiated a process whereby ? for employees not using eSuites ? manual review and approval of bi-weekly hours is conducted by supervisors in the appropriate department (i.e., Transit, Police, etc.). Management believes this additional review and approval level will provide the necessary back-up to improve internal control over timecards/timekeeping.
Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2017-149-00; CA-90-Z085-00; CA-90-Y974-00; CA -2019-033-00; CA -90-Y900-00; CA-2020-177-00; CA-2021-169-01; CA-2022-041-00; CA-2021-075-00 Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Entity: N/A Federal Award Identification Number: 1505-0271 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): In accordance with 2 CFR ?200.303 Internal Controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under ?200.302 Financial Management, (b) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Under ?200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition: During the audit, we could not verify if the Bus Operators? and Police Officers? timecards were properly approved by their supervisors. The timecard reports were uploaded from the time entry system to the payroll module by the supervisors; however, there were no records on who reviewed the timecard reports or completed the upload of the timecard reports to the payroll module. Additionally, 8 out of 25 Police Officers? personnel action forms could not be located. Cause: The Bus Line and Police Departments did not have formal policies and procedures over the timecard approval process. There was also ineffective monitoring of human resources processes, including the maintenance of personnel action forms. Effect or Potential Effect: Without approved personnel action forms and review or approval of time cards, inaccurate payroll expenditures could be charged to the federal programs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City adopt formal policies and procedures on the documentation of timecard approval process for the Bus Line and Police Departments. The City should also implement regular monitoring and conduct periodic reviews of personnel files to verify the presence and completeness of personnel action forms. Views of Responsible Officials: Management has reviewed the payroll/timecard approval process. The City utilizes New World Systems eSuites for employees to enter their bi-weekly hours, and for employees and supervisors to approve timesheets. However, not all employees can utilize eSuites, as the requirements for timekeeping for Bus Operators, Police and Fire personnel is such that separate timekeeping systems must be maintained and utilized. To that end, staff has initiated a process whereby ? for employees not using eSuites ? manual review and approval of bi-weekly hours is conducted by supervisors in the appropriate department (i.e., Transit, Police, etc.). Management believes this additional review and approval level will provide the necessary back-up to improve internal control over timecards/timekeeping.
Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2017-149-00; CA-90-Z085-00; CA-90-Y974-00; CA -2019-033-00; CA -90-Y900-00; CA-2020-177-00; CA-2021-169-01; CA-2022-041-00; CA-2021-075-00 Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Entity: N/A Federal Award Identification Number: 1505-0271 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): In accordance with 2 CFR ?200.303 Internal Controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under ?200.302 Financial Management, (b) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Under ?200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition: During the audit, we could not verify if the Bus Operators? and Police Officers? timecards were properly approved by their supervisors. The timecard reports were uploaded from the time entry system to the payroll module by the supervisors; however, there were no records on who reviewed the timecard reports or completed the upload of the timecard reports to the payroll module. Additionally, 8 out of 25 Police Officers? personnel action forms could not be located. Cause: The Bus Line and Police Departments did not have formal policies and procedures over the timecard approval process. There was also ineffective monitoring of human resources processes, including the maintenance of personnel action forms. Effect or Potential Effect: Without approved personnel action forms and review or approval of time cards, inaccurate payroll expenditures could be charged to the federal programs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City adopt formal policies and procedures on the documentation of timecard approval process for the Bus Line and Police Departments. The City should also implement regular monitoring and conduct periodic reviews of personnel files to verify the presence and completeness of personnel action forms. Views of Responsible Officials: Management has reviewed the payroll/timecard approval process. The City utilizes New World Systems eSuites for employees to enter their bi-weekly hours, and for employees and supervisors to approve timesheets. However, not all employees can utilize eSuites, as the requirements for timekeeping for Bus Operators, Police and Fire personnel is such that separate timekeeping systems must be maintained and utilized. To that end, staff has initiated a process whereby ? for employees not using eSuites ? manual review and approval of bi-weekly hours is conducted by supervisors in the appropriate department (i.e., Transit, Police, etc.). Management believes this additional review and approval level will provide the necessary back-up to improve internal control over timecards/timekeeping.
Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2017-149-00; CA-90-Z085-00; CA-90-Y974-00; CA -2019-033-00; CA -90-Y900-00; CA-2020-177-00; CA-2021-169-01; CA-2022-041-00; CA-2021-075-00 Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Entity: N/A Federal Award Identification Number: 1505-0271 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): In accordance with 2 CFR ?200.303 Internal Controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under ?200.302 Financial Management, (b) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Under ?200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition: During the audit, we could not verify if the Bus Operators? and Police Officers? timecards were properly approved by their supervisors. The timecard reports were uploaded from the time entry system to the payroll module by the supervisors; however, there were no records on who reviewed the timecard reports or completed the upload of the timecard reports to the payroll module. Additionally, 8 out of 25 Police Officers? personnel action forms could not be located. Cause: The Bus Line and Police Departments did not have formal policies and procedures over the timecard approval process. There was also ineffective monitoring of human resources processes, including the maintenance of personnel action forms. Effect or Potential Effect: Without approved personnel action forms and review or approval of time cards, inaccurate payroll expenditures could be charged to the federal programs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City adopt formal policies and procedures on the documentation of timecard approval process for the Bus Line and Police Departments. The City should also implement regular monitoring and conduct periodic reviews of personnel files to verify the presence and completeness of personnel action forms. Views of Responsible Officials: Management has reviewed the payroll/timecard approval process. The City utilizes New World Systems eSuites for employees to enter their bi-weekly hours, and for employees and supervisors to approve timesheets. However, not all employees can utilize eSuites, as the requirements for timekeeping for Bus Operators, Police and Fire personnel is such that separate timekeeping systems must be maintained and utilized. To that end, staff has initiated a process whereby ? for employees not using eSuites ? manual review and approval of bi-weekly hours is conducted by supervisors in the appropriate department (i.e., Transit, Police, etc.). Management believes this additional review and approval level will provide the necessary back-up to improve internal control over timecards/timekeeping.
Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2017-149-00; CA-90-Z085-00; CA-90-Y974-00; CA -2019-033-00; CA -90-Y900-00; CA-2020-177-00; CA-2021-169-01; CA-2022-041-00; CA-2021-075-00 Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Entity: N/A Federal Award Identification Number: 1505-0271 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): In accordance with 2 CFR ?200.303 Internal Controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under ?200.302 Financial Management, (b) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Under ?200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition: During the audit, we could not verify if the Bus Operators? and Police Officers? timecards were properly approved by their supervisors. The timecard reports were uploaded from the time entry system to the payroll module by the supervisors; however, there were no records on who reviewed the timecard reports or completed the upload of the timecard reports to the payroll module. Additionally, 8 out of 25 Police Officers? personnel action forms could not be located. Cause: The Bus Line and Police Departments did not have formal policies and procedures over the timecard approval process. There was also ineffective monitoring of human resources processes, including the maintenance of personnel action forms. Effect or Potential Effect: Without approved personnel action forms and review or approval of time cards, inaccurate payroll expenditures could be charged to the federal programs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City adopt formal policies and procedures on the documentation of timecard approval process for the Bus Line and Police Departments. The City should also implement regular monitoring and conduct periodic reviews of personnel files to verify the presence and completeness of personnel action forms. Views of Responsible Officials: Management has reviewed the payroll/timecard approval process. The City utilizes New World Systems eSuites for employees to enter their bi-weekly hours, and for employees and supervisors to approve timesheets. However, not all employees can utilize eSuites, as the requirements for timekeeping for Bus Operators, Police and Fire personnel is such that separate timekeeping systems must be maintained and utilized. To that end, staff has initiated a process whereby ? for employees not using eSuites ? manual review and approval of bi-weekly hours is conducted by supervisors in the appropriate department (i.e., Transit, Police, etc.). Management believes this additional review and approval level will provide the necessary back-up to improve internal control over timecards/timekeeping.
Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2017-149-00; CA-90-Z085-00; CA-90-Y974-00; CA -2019-033-00; CA -90-Y900-00; CA-2020-177-00; CA-2021-169-01; CA-2022-041-00; CA-2021-075-00 Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Entity: N/A Federal Award Identification Number: 1505-0271 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): In accordance with 2 CFR ?200.303 Internal Controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under ?200.302 Financial Management, (b) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Under ?200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition: During the audit, we could not verify if the Bus Operators? and Police Officers? timecards were properly approved by their supervisors. The timecard reports were uploaded from the time entry system to the payroll module by the supervisors; however, there were no records on who reviewed the timecard reports or completed the upload of the timecard reports to the payroll module. Additionally, 8 out of 25 Police Officers? personnel action forms could not be located. Cause: The Bus Line and Police Departments did not have formal policies and procedures over the timecard approval process. There was also ineffective monitoring of human resources processes, including the maintenance of personnel action forms. Effect or Potential Effect: Without approved personnel action forms and review or approval of time cards, inaccurate payroll expenditures could be charged to the federal programs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City adopt formal policies and procedures on the documentation of timecard approval process for the Bus Line and Police Departments. The City should also implement regular monitoring and conduct periodic reviews of personnel files to verify the presence and completeness of personnel action forms. Views of Responsible Officials: Management has reviewed the payroll/timecard approval process. The City utilizes New World Systems eSuites for employees to enter their bi-weekly hours, and for employees and supervisors to approve timesheets. However, not all employees can utilize eSuites, as the requirements for timekeeping for Bus Operators, Police and Fire personnel is such that separate timekeeping systems must be maintained and utilized. To that end, staff has initiated a process whereby ? for employees not using eSuites ? manual review and approval of bi-weekly hours is conducted by supervisors in the appropriate department (i.e., Transit, Police, etc.). Management believes this additional review and approval level will provide the necessary back-up to improve internal control over timecards/timekeeping.