Audit 323605

FY End
2023-09-30
Total Expended
$6.18M
Findings
20
Programs
4
Organization: City of Avon Park (FL)
Year: 2023 Accepted: 2024-10-02

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
501547 2023-002 Material Weakness - L
501548 2023-003 Material Weakness - L
501549 2023-003 Material Weakness - L
501550 2023-003 Material Weakness - L
501551 2023-004 Significant Deficiency - G
501552 2023-004 Significant Deficiency - G
501553 2023-004 Significant Deficiency - G
501554 2023-005 Significant Deficiency - N
501555 2023-005 Significant Deficiency - N
501556 2023-005 Significant Deficiency - N
1077989 2023-002 Material Weakness - L
1077990 2023-003 Material Weakness - L
1077991 2023-003 Material Weakness - L
1077992 2023-003 Material Weakness - L
1077993 2023-004 Significant Deficiency - G
1077994 2023-004 Significant Deficiency - G
1077995 2023-004 Significant Deficiency - G
1077996 2023-005 Significant Deficiency - N
1077997 2023-005 Significant Deficiency - N
1077998 2023-005 Significant Deficiency - N

Contacts

Name Title Type
YX6KHX6NTSC5 Melody Sauerhafer Auditee
8634524400 Julie Fowler Auditor
No contacts on file

Notes to SEFA

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards and state financial assistance (the Schedule) includes the federal and state grant activity of the City of Avon Park, Florida (City) for the year ended September 30, 2023. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City. The City did not receive noncash assistance during the year. There were no loans or loan guarantees outstanding. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting for awards and financial assistance recorded in the governmental funds and the accrual basis of accounting for awards and financial assistance recorded in the proprietary funds, which are described in Note 1 to the City’s basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: CONTINGENCIES Accounting Policies: The accompanying schedule of expenditures of federal awards and state financial assistance (the Schedule) includes the federal and state grant activity of the City of Avon Park, Florida (City) for the year ended September 30, 2023. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City. The City did not receive noncash assistance during the year. There were no loans or loan guarantees outstanding. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Grant monies received and disbursed by the City are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the City does not believe that such disallowances, if any would have a material effect on the financial position of the City.

Finding Details

Federal Agency: Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: Unknown Award Period: 03/03/2021 – 12/31/2024 Type of Finding: • Material Weakness in Internal Control Over Compliance • Other Matters Criteria or specific requirement: The award requires a Project and Expenditure Report be submitted by April 30, 2022 and then annually thereafter. Internal controls should be in place to ensure reports are reviewed for accuracy and completeness before they are submitted and that they are submitted timely. Condition: The annual Project and Expenditure Report was submitted after the reporting due date. There is no review process in place to ensure required reports are filed timely. Questioned costs: None. Context: During our testing of the annual report, we noted the report was due April 30, 2023 but was submitted on May 8, 2023, 8 days after the due date. Cause: Lack of knowledge and training of those managing grants. Effect: Late reporting could result in a Federal agency requiring funds to be returned or inability to secure future grant funding. Repeat finding: No. Recommendation: We recommend the City designate a responsible and qualified grant manager, establish internal controls for reporting, and file required reports in a timely and accurate manner. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number and Year: • 3-12-002-023-2022 • 3-12-002-024-2022 • 3-12-002-025-2022 Award Period: • 1/20/2020-1/20/2024 • 9/13/2022-9/13/2026 • 9/13/2022-9/13/2026 Type of Finding: • Material Weakness in Internal Control Over Compliance • Other Matters Criteria or specific requirement: The City is required to submit formal financial and performance reports on an annual basis using prescribed form SF-425 and formal reimbursement requests on an as needed basis using prescribed form SF-270. Internal controls should be in place to ensure reports are reviewed for accuracy and completeness before they are submitted and that they are submitted timely. Condition: There is no review process in place to ensure required reports are filed timely, accurately, and in accordance with program guidelines. Two reports were not filed for the year audited. Questioned costs: None. Context: Form SF-425 Federal Financial Report is due 90 days after fiscal year end, for each grant open at year end. Six reports were tested during our audit procedures. Cause: Turnover in City staff and lack of knowledge and training of those managing grants. Effect: A failure to submit required reports to FAA could result in disciplinary action such as a delay in payments or change in award. Repeat finding: No. Recommendation: We recommend the City designate a responsible and qualified grant manager, establish internal controls for reporting, and file required reports in a timely and accurate manner. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number and Year: • 3-12-002-023-2022 • 3-12-002-024-2022 • 3-12-002-025-2022 Award Period: • 1/20/2020-1/20/2024 • 9/13/2022-9/13/2026 • 9/13/2022-9/13/2026 Type of Finding: • Material Weakness in Internal Control Over Compliance • Other Matters Criteria or specific requirement: The City is required to submit formal financial and performance reports on an annual basis using prescribed form SF-425 and formal reimbursement requests on an as needed basis using prescribed form SF-270. Internal controls should be in place to ensure reports are reviewed for accuracy and completeness before they are submitted and that they are submitted timely. Condition: There is no review process in place to ensure required reports are filed timely, accurately, and in accordance with program guidelines. Two reports were not filed for the year audited. Questioned costs: None. Context: Form SF-425 Federal Financial Report is due 90 days after fiscal year end, for each grant open at year end. Six reports were tested during our audit procedures. Cause: Turnover in City staff and lack of knowledge and training of those managing grants. Effect: A failure to submit required reports to FAA could result in disciplinary action such as a delay in payments or change in award. Repeat finding: No. Recommendation: We recommend the City designate a responsible and qualified grant manager, establish internal controls for reporting, and file required reports in a timely and accurate manner. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number and Year: • 3-12-002-023-2022 • 3-12-002-024-2022 • 3-12-002-025-2022 Award Period: • 1/20/2020-1/20/2024 • 9/13/2022-9/13/2026 • 9/13/2022-9/13/2026 Type of Finding: • Material Weakness in Internal Control Over Compliance • Other Matters Criteria or specific requirement: The City is required to submit formal financial and performance reports on an annual basis using prescribed form SF-425 and formal reimbursement requests on an as needed basis using prescribed form SF-270. Internal controls should be in place to ensure reports are reviewed for accuracy and completeness before they are submitted and that they are submitted timely. Condition: There is no review process in place to ensure required reports are filed timely, accurately, and in accordance with program guidelines. Two reports were not filed for the year audited. Questioned costs: None. Context: Form SF-425 Federal Financial Report is due 90 days after fiscal year end, for each grant open at year end. Six reports were tested during our audit procedures. Cause: Turnover in City staff and lack of knowledge and training of those managing grants. Effect: A failure to submit required reports to FAA could result in disciplinary action such as a delay in payments or change in award. Repeat finding: No. Recommendation: We recommend the City designate a responsible and qualified grant manager, establish internal controls for reporting, and file required reports in a timely and accurate manner. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number and Year: 3-12-0004-024-2022 Award Period: 09/13/2022-09/13/2026 Type of Finding: • Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires compliance with matching provisions. The City should have internal controls designed to ensure compliance with those provisions. Condition: The City does not have adequate internal controls designed to document review of matching requirements. Questioned costs: None. Context: In a sample of 5 reimbursement requests, there was no documentation that the match calculation was reviewed for 2 items tested. Cause: Turnover in City staff and lack of knowledge and training of those managing grants. Effect: Grant match could be incorrectly calculated or reported. Repeat finding: No. Recommendation: We recommend the City designate a responsible and qualified grant manager and establish internal controls for matching requirement. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number and Year: 3-12-0004-024-2022 Award Period: 09/13/2022-09/13/2026 Type of Finding: • Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires compliance with matching provisions. The City should have internal controls designed to ensure compliance with those provisions. Condition: The City does not have adequate internal controls designed to document review of matching requirements. Questioned costs: None. Context: In a sample of 5 reimbursement requests, there was no documentation that the match calculation was reviewed for 2 items tested. Cause: Turnover in City staff and lack of knowledge and training of those managing grants. Effect: Grant match could be incorrectly calculated or reported. Repeat finding: No. Recommendation: We recommend the City designate a responsible and qualified grant manager and establish internal controls for matching requirement. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number and Year: 3-12-0004-024-2022 Award Period: 09/13/2022-09/13/2026 Type of Finding: • Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires compliance with matching provisions. The City should have internal controls designed to ensure compliance with those provisions. Condition: The City does not have adequate internal controls designed to document review of matching requirements. Questioned costs: None. Context: In a sample of 5 reimbursement requests, there was no documentation that the match calculation was reviewed for 2 items tested. Cause: Turnover in City staff and lack of knowledge and training of those managing grants. Effect: Grant match could be incorrectly calculated or reported. Repeat finding: No. Recommendation: We recommend the City designate a responsible and qualified grant manager and establish internal controls for matching requirement. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number and Year: 3-12-0004-024-2022 Award Period: 09/13/2022-09/13/2026 Type of Finding: • Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires compliance with special tests and provisions. The City should have internal controls designed to ensure compliance with those provisions, including reviewing and monitoring functions outsourced to consultants. Condition: The City does not have adequate internal controls designed to review the consultant’s monitoring of Davis-Bacon requirements. Questioned costs: None. Context: In a sample of 8 certified payrolls, we noted review was performed by the consultant; however, no one at the city reviewed the consultant’s work. Cause: Turnover in City staff and lack of knowledge and training of those managing grants. Effect: If the prevailing wage rate is not paid to contracted laborers, it could result in the City being required to return funds to the grantor. Repeat finding: No. Recommendation: We recommend the City designate a responsible and qualified grant manager and establish internal controls for matching requirement. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number and Year: 3-12-0004-024-2022 Award Period: 09/13/2022-09/13/2026 Type of Finding: • Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires compliance with special tests and provisions. The City should have internal controls designed to ensure compliance with those provisions, including reviewing and monitoring functions outsourced to consultants. Condition: The City does not have adequate internal controls designed to review the consultant’s monitoring of Davis-Bacon requirements. Questioned costs: None. Context: In a sample of 8 certified payrolls, we noted review was performed by the consultant; however, no one at the city reviewed the consultant’s work. Cause: Turnover in City staff and lack of knowledge and training of those managing grants. Effect: If the prevailing wage rate is not paid to contracted laborers, it could result in the City being required to return funds to the grantor. Repeat finding: No. Recommendation: We recommend the City designate a responsible and qualified grant manager and establish internal controls for matching requirement. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number and Year: 3-12-0004-024-2022 Award Period: 09/13/2022-09/13/2026 Type of Finding: • Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires compliance with special tests and provisions. The City should have internal controls designed to ensure compliance with those provisions, including reviewing and monitoring functions outsourced to consultants. Condition: The City does not have adequate internal controls designed to review the consultant’s monitoring of Davis-Bacon requirements. Questioned costs: None. Context: In a sample of 8 certified payrolls, we noted review was performed by the consultant; however, no one at the city reviewed the consultant’s work. Cause: Turnover in City staff and lack of knowledge and training of those managing grants. Effect: If the prevailing wage rate is not paid to contracted laborers, it could result in the City being required to return funds to the grantor. Repeat finding: No. Recommendation: We recommend the City designate a responsible and qualified grant manager and establish internal controls for matching requirement. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: Unknown Award Period: 03/03/2021 – 12/31/2024 Type of Finding: • Material Weakness in Internal Control Over Compliance • Other Matters Criteria or specific requirement: The award requires a Project and Expenditure Report be submitted by April 30, 2022 and then annually thereafter. Internal controls should be in place to ensure reports are reviewed for accuracy and completeness before they are submitted and that they are submitted timely. Condition: The annual Project and Expenditure Report was submitted after the reporting due date. There is no review process in place to ensure required reports are filed timely. Questioned costs: None. Context: During our testing of the annual report, we noted the report was due April 30, 2023 but was submitted on May 8, 2023, 8 days after the due date. Cause: Lack of knowledge and training of those managing grants. Effect: Late reporting could result in a Federal agency requiring funds to be returned or inability to secure future grant funding. Repeat finding: No. Recommendation: We recommend the City designate a responsible and qualified grant manager, establish internal controls for reporting, and file required reports in a timely and accurate manner. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number and Year: • 3-12-002-023-2022 • 3-12-002-024-2022 • 3-12-002-025-2022 Award Period: • 1/20/2020-1/20/2024 • 9/13/2022-9/13/2026 • 9/13/2022-9/13/2026 Type of Finding: • Material Weakness in Internal Control Over Compliance • Other Matters Criteria or specific requirement: The City is required to submit formal financial and performance reports on an annual basis using prescribed form SF-425 and formal reimbursement requests on an as needed basis using prescribed form SF-270. Internal controls should be in place to ensure reports are reviewed for accuracy and completeness before they are submitted and that they are submitted timely. Condition: There is no review process in place to ensure required reports are filed timely, accurately, and in accordance with program guidelines. Two reports were not filed for the year audited. Questioned costs: None. Context: Form SF-425 Federal Financial Report is due 90 days after fiscal year end, for each grant open at year end. Six reports were tested during our audit procedures. Cause: Turnover in City staff and lack of knowledge and training of those managing grants. Effect: A failure to submit required reports to FAA could result in disciplinary action such as a delay in payments or change in award. Repeat finding: No. Recommendation: We recommend the City designate a responsible and qualified grant manager, establish internal controls for reporting, and file required reports in a timely and accurate manner. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number and Year: • 3-12-002-023-2022 • 3-12-002-024-2022 • 3-12-002-025-2022 Award Period: • 1/20/2020-1/20/2024 • 9/13/2022-9/13/2026 • 9/13/2022-9/13/2026 Type of Finding: • Material Weakness in Internal Control Over Compliance • Other Matters Criteria or specific requirement: The City is required to submit formal financial and performance reports on an annual basis using prescribed form SF-425 and formal reimbursement requests on an as needed basis using prescribed form SF-270. Internal controls should be in place to ensure reports are reviewed for accuracy and completeness before they are submitted and that they are submitted timely. Condition: There is no review process in place to ensure required reports are filed timely, accurately, and in accordance with program guidelines. Two reports were not filed for the year audited. Questioned costs: None. Context: Form SF-425 Federal Financial Report is due 90 days after fiscal year end, for each grant open at year end. Six reports were tested during our audit procedures. Cause: Turnover in City staff and lack of knowledge and training of those managing grants. Effect: A failure to submit required reports to FAA could result in disciplinary action such as a delay in payments or change in award. Repeat finding: No. Recommendation: We recommend the City designate a responsible and qualified grant manager, establish internal controls for reporting, and file required reports in a timely and accurate manner. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number and Year: • 3-12-002-023-2022 • 3-12-002-024-2022 • 3-12-002-025-2022 Award Period: • 1/20/2020-1/20/2024 • 9/13/2022-9/13/2026 • 9/13/2022-9/13/2026 Type of Finding: • Material Weakness in Internal Control Over Compliance • Other Matters Criteria or specific requirement: The City is required to submit formal financial and performance reports on an annual basis using prescribed form SF-425 and formal reimbursement requests on an as needed basis using prescribed form SF-270. Internal controls should be in place to ensure reports are reviewed for accuracy and completeness before they are submitted and that they are submitted timely. Condition: There is no review process in place to ensure required reports are filed timely, accurately, and in accordance with program guidelines. Two reports were not filed for the year audited. Questioned costs: None. Context: Form SF-425 Federal Financial Report is due 90 days after fiscal year end, for each grant open at year end. Six reports were tested during our audit procedures. Cause: Turnover in City staff and lack of knowledge and training of those managing grants. Effect: A failure to submit required reports to FAA could result in disciplinary action such as a delay in payments or change in award. Repeat finding: No. Recommendation: We recommend the City designate a responsible and qualified grant manager, establish internal controls for reporting, and file required reports in a timely and accurate manner. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number and Year: 3-12-0004-024-2022 Award Period: 09/13/2022-09/13/2026 Type of Finding: • Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires compliance with matching provisions. The City should have internal controls designed to ensure compliance with those provisions. Condition: The City does not have adequate internal controls designed to document review of matching requirements. Questioned costs: None. Context: In a sample of 5 reimbursement requests, there was no documentation that the match calculation was reviewed for 2 items tested. Cause: Turnover in City staff and lack of knowledge and training of those managing grants. Effect: Grant match could be incorrectly calculated or reported. Repeat finding: No. Recommendation: We recommend the City designate a responsible and qualified grant manager and establish internal controls for matching requirement. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number and Year: 3-12-0004-024-2022 Award Period: 09/13/2022-09/13/2026 Type of Finding: • Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires compliance with matching provisions. The City should have internal controls designed to ensure compliance with those provisions. Condition: The City does not have adequate internal controls designed to document review of matching requirements. Questioned costs: None. Context: In a sample of 5 reimbursement requests, there was no documentation that the match calculation was reviewed for 2 items tested. Cause: Turnover in City staff and lack of knowledge and training of those managing grants. Effect: Grant match could be incorrectly calculated or reported. Repeat finding: No. Recommendation: We recommend the City designate a responsible and qualified grant manager and establish internal controls for matching requirement. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number and Year: 3-12-0004-024-2022 Award Period: 09/13/2022-09/13/2026 Type of Finding: • Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires compliance with matching provisions. The City should have internal controls designed to ensure compliance with those provisions. Condition: The City does not have adequate internal controls designed to document review of matching requirements. Questioned costs: None. Context: In a sample of 5 reimbursement requests, there was no documentation that the match calculation was reviewed for 2 items tested. Cause: Turnover in City staff and lack of knowledge and training of those managing grants. Effect: Grant match could be incorrectly calculated or reported. Repeat finding: No. Recommendation: We recommend the City designate a responsible and qualified grant manager and establish internal controls for matching requirement. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number and Year: 3-12-0004-024-2022 Award Period: 09/13/2022-09/13/2026 Type of Finding: • Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires compliance with special tests and provisions. The City should have internal controls designed to ensure compliance with those provisions, including reviewing and monitoring functions outsourced to consultants. Condition: The City does not have adequate internal controls designed to review the consultant’s monitoring of Davis-Bacon requirements. Questioned costs: None. Context: In a sample of 8 certified payrolls, we noted review was performed by the consultant; however, no one at the city reviewed the consultant’s work. Cause: Turnover in City staff and lack of knowledge and training of those managing grants. Effect: If the prevailing wage rate is not paid to contracted laborers, it could result in the City being required to return funds to the grantor. Repeat finding: No. Recommendation: We recommend the City designate a responsible and qualified grant manager and establish internal controls for matching requirement. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number and Year: 3-12-0004-024-2022 Award Period: 09/13/2022-09/13/2026 Type of Finding: • Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires compliance with special tests and provisions. The City should have internal controls designed to ensure compliance with those provisions, including reviewing and monitoring functions outsourced to consultants. Condition: The City does not have adequate internal controls designed to review the consultant’s monitoring of Davis-Bacon requirements. Questioned costs: None. Context: In a sample of 8 certified payrolls, we noted review was performed by the consultant; however, no one at the city reviewed the consultant’s work. Cause: Turnover in City staff and lack of knowledge and training of those managing grants. Effect: If the prevailing wage rate is not paid to contracted laborers, it could result in the City being required to return funds to the grantor. Repeat finding: No. Recommendation: We recommend the City designate a responsible and qualified grant manager and establish internal controls for matching requirement. Views of responsible officials: There is no disagreement with the audit finding.
Federal agency: Department of Transportation Federal program title: Airport Improvement Program Assistance Listing Number: 20.106 Federal Award Identification Number and Year: 3-12-0004-024-2022 Award Period: 09/13/2022-09/13/2026 Type of Finding: • Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires compliance with special tests and provisions. The City should have internal controls designed to ensure compliance with those provisions, including reviewing and monitoring functions outsourced to consultants. Condition: The City does not have adequate internal controls designed to review the consultant’s monitoring of Davis-Bacon requirements. Questioned costs: None. Context: In a sample of 8 certified payrolls, we noted review was performed by the consultant; however, no one at the city reviewed the consultant’s work. Cause: Turnover in City staff and lack of knowledge and training of those managing grants. Effect: If the prevailing wage rate is not paid to contracted laborers, it could result in the City being required to return funds to the grantor. Repeat finding: No. Recommendation: We recommend the City designate a responsible and qualified grant manager and establish internal controls for matching requirement. Views of responsible officials: There is no disagreement with the audit finding.