FAC Explorer

Audit 321709

FY End
2023-12-31
Total Expended
$19.79M
Findings
4
Programs
23
Organization: City of Charleston, South Carolina (SC)
Year: 2023 Accepted: 2024-09-27
Auditor: Mauldin & Jenkins CPAS and Advisors

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498900 2023-001 Significant Deficiency - L
498901 2023-002 Significant Deficiency - L
1075342 2023-001 Significant Deficiency - L
1075343 2023-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $5.74M Yes 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $5.21M - 0
20.933 National Infrastructure Investments $2.58M Yes 0
11.307 Economic Adjustment Assistance $1.93M Yes 1
14.218 Community Development Block Grants/entitlement Grants $1.32M - 0
14.241 Housing Opportunities for Persons with Aids $1.21M Yes 1
14.239 Home Investment Partnerships Program $374,193 - 0
93.889 National Bioterrorism Hospital Preparedness Program $300,044 - 0
97.056 Port Security Grant Program $279,785 - 0
11.473 Office for Coastal Management $186,261 - 0
16.838 Comprehensive Opioid, Stimulant, and Other Substances Use Program $177,486 - 0
20.205 Highway Planning and Construction $78,197 - 0
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $73,950 - 0
97.067 Homeland Security Grant Program $60,336 - 0
16.922 Equitable Sharing Program $43,628 - 0
97.039 Hazard Mitigation Grant $42,554 - 0
16.575 Crime Victim Assistance $41,010 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $29,171 - 0
10.559 Summer Food Service Program for Children $28,602 - 0
94.013 Americorps Volunteers in Service to America 94.013 $6,833 - 0
45.025 Promotion of the Arts Partnership Agreements $5,500 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $2,700 - 0
15.904 Historic Preservation Fund Grants-in-Aid $1,359 - 0

Contacts

Name Title Type
DFAMMXJFS5E3 Amy Wharton Auditee
8435797529 Grant Davis Auditor
No contacts on file

Notes to SEFA

Title: 1 Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the City of Charleston, South Carolina (the “City”), and is presented on the accrual basis of accounting. The City reporting entity is defined in Note 1 of the City’s basic financial statements. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The City chose not to use the ten percent de Minimis indirect cost rate for the year ended December 31, 2023. BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the City of Charleston, South Carolina (the “City”), and is presented on the accrual basis of accounting. The City reporting entity is defined in Note 1 of the City’s basic financial statements. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: 2 Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the City of Charleston, South Carolina (the “City”), and is presented on the accrual basis of accounting. The City reporting entity is defined in Note 1 of the City’s basic financial statements. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The City chose not to use the ten percent de Minimis indirect cost rate for the year ended December 31, 2023. PROGRAM INCOME The City reported federal expenditures funded by program income as follows: Agency Pass- Federal through CFDA Identifying Program Federal Grantor/Program Title Number Number Income U.S. Department of Housing and Urban Development Community Development Block Grant/Entitlement Grants 14.218 B-21-MC-45-0001 $ 286,905 U.S. Department of Housing and Urban Development Home Investment Partnerships Program 14.239 M-19-MC-45-0201 59,663 9
Title: 3 Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the City of Charleston, South Carolina (the “City”), and is presented on the accrual basis of accounting. The City reporting entity is defined in Note 1 of the City’s basic financial statements. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The City chose not to use the ten percent de Minimis indirect cost rate for the year ended December 31, 2023. The City’s federal expenditures relative to the Economic Adjustment Assistance Program consisted of the following for the year ended December 31, 2023: Revolving Loan Fund (RLF) loans outstanding $ 857,201 $ 4 34,556 Cash and investment balance in the RLF 171,506 4 22,622 Administrative expenses paid from RLF income 15,600 - Total 1,044,307 8 57,178 Federal share of RLF 100% 100% Total federal expenditures $ 1,044,307 $ 8 57,178
Title: 4 Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the City of Charleston, South Carolina (the “City”), and is presented on the accrual basis of accounting. The City reporting entity is defined in Note 1 of the City’s basic financial statements. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The City chose not to use the ten percent de Minimis indirect cost rate for the year ended December 31, 2023. The City chose not to use the ten percent de Minimis indirect cost rate for the year ended December 31, 2023.

Finding Details

Finding 2023-001
AL#: 14.241 Housing Opportunities for Persons with AIDS Grant Program Award Year: 2023 Criteria: Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109- 282), as amended by Section 6202 of Pub. L. No. 110-252, hereafter referred to as “FFATA” that are codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The subawards are required to be reported in FSRS no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Applicable subaward obligations/modifications are required to be reported. Condition: FFATA reporting was due no later than March 31, 2023, (for the Charleston County Human Services Commission Subaward) and no later than April 30, 2023, (Pastors Subaward). These two (2) reports were ultimately submitted by the City in June of 2023. The FFATA reporting for the Pastors Subaward did not include a $10,000 contract amendment, this was corrected by amending the report. Context: We addressed the matter with City management who are aware of the reporting requirements. Effect: Failure to properly review and adhere to policies and procedures related to reporting can lead to noncompliance as well as the withholding of future awards and funds drawdowns by the awarding agency. Cause: Management oversight. Recommendation: We recommend the City review and update its policies and procedures to ensure all required reports are prepared, reviewed, and submitted within the program’s required timeframes, and with the correct amounts.
Finding 2023-002
2023-002. Reporting AL#: 11.307 Economic Adjustment Assistance Revolving Loan Funds Program Award Year: 2020 & 1995 Criteria: Recipients must submit a RLF Financial Report (Form ED-209), including a Portfolio Loan List, on a semiannual basis during the period of performance of the award and after the period of performance of the award (during the Revolving Phase). The report must be submitted within 30 calendar days of the midpoint and end of Recipient’s fiscal year. Condition: The ED-209 reports for July 1, 2023, through December 31, 2023, were due no later than January 30, 2024, for both the EDA Legacy and EDA CARES awards. These reports were ultimately submitted by the CLIMB Fund (who is administering the grant for the City) in February 2024. Context: We addressed the matter with City management who are aware of the reporting requirements. Effect: Failure to properly review and adhere to policies and procedures related to reporting can lead to noncompliance as well as the withholding of future awards. Cause: Management oversight. Recommendation: We recommend the City review and update its policies and procedures to ensure all required reports are prepared, reviewed, and submitted within the program’s required timeframes, and with the correct amounts.
Finding 2023-001
AL#: 14.241 Housing Opportunities for Persons with AIDS Grant Program Award Year: 2023 Criteria: Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109- 282), as amended by Section 6202 of Pub. L. No. 110-252, hereafter referred to as “FFATA” that are codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). The subawards are required to be reported in FSRS no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Applicable subaward obligations/modifications are required to be reported. Condition: FFATA reporting was due no later than March 31, 2023, (for the Charleston County Human Services Commission Subaward) and no later than April 30, 2023, (Pastors Subaward). These two (2) reports were ultimately submitted by the City in June of 2023. The FFATA reporting for the Pastors Subaward did not include a $10,000 contract amendment, this was corrected by amending the report. Context: We addressed the matter with City management who are aware of the reporting requirements. Effect: Failure to properly review and adhere to policies and procedures related to reporting can lead to noncompliance as well as the withholding of future awards and funds drawdowns by the awarding agency. Cause: Management oversight. Recommendation: We recommend the City review and update its policies and procedures to ensure all required reports are prepared, reviewed, and submitted within the program’s required timeframes, and with the correct amounts.
Finding 2023-002
2023-002. Reporting AL#: 11.307 Economic Adjustment Assistance Revolving Loan Funds Program Award Year: 2020 & 1995 Criteria: Recipients must submit a RLF Financial Report (Form ED-209), including a Portfolio Loan List, on a semiannual basis during the period of performance of the award and after the period of performance of the award (during the Revolving Phase). The report must be submitted within 30 calendar days of the midpoint and end of Recipient’s fiscal year. Condition: The ED-209 reports for July 1, 2023, through December 31, 2023, were due no later than January 30, 2024, for both the EDA Legacy and EDA CARES awards. These reports were ultimately submitted by the CLIMB Fund (who is administering the grant for the City) in February 2024. Context: We addressed the matter with City management who are aware of the reporting requirements. Effect: Failure to properly review and adhere to policies and procedures related to reporting can lead to noncompliance as well as the withholding of future awards. Cause: Management oversight. Recommendation: We recommend the City review and update its policies and procedures to ensure all required reports are prepared, reviewed, and submitted within the program’s required timeframes, and with the correct amounts.