Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development
AL No. 14.239 HOME Investment Partnerships Program
Material Weakness in Internal Controls and Noncompliance over Program Income
Repeat Finding: No
Condition:
For 10 out of 10 selections, we were unable to agree the program income amount to the general
ledger to ensure funds are properly recorded in the accounting records.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1).
program documentation; (2). timesheets, (3) deliverables, (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency does not have controls in place to ensure program income requirements are met.
Effect:
The City may not be in compliance with the program income requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with program
income requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development
AL No. 14.239 HOME Investment Partnerships Program
Significant Deficiency in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: No
Condition:
For 1 out of 40 selections, the Physical Inspection Findings and Notice of Corrective Measures
letter did not have the compliance officer's approval.
For 2 out of 40 selections, management was unable to provide support for verification of inspection
for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1).
program documentation; (2). timesheets, (3) deliverables, (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency does not have controls in place to ensure requirements around housing quality
standards are met.
Effect:
The City may not be in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that the City: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed and, (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development
AL No. 14.239 HOME Investment Partnerships Program
Material Weakness in Internal Controls and Noncompliance over Program Income
Repeat Finding: No
Condition:
For 10 out of 10 selections, we were unable to agree the program income amount to the general
ledger to ensure funds are properly recorded in the accounting records.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1).
program documentation; (2). timesheets, (3) deliverables, (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency does not have controls in place to ensure program income requirements are met.
Effect:
The City may not be in compliance with the program income requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with program
income requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development
AL No. 14.239 HOME Investment Partnerships Program
Significant Deficiency in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: No
Condition:
For 1 out of 40 selections, the Physical Inspection Findings and Notice of Corrective Measures
letter did not have the compliance officer's approval.
For 2 out of 40 selections, management was unable to provide support for verification of inspection
for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1).
program documentation; (2). timesheets, (3) deliverables, (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency does not have controls in place to ensure requirements around housing quality
standards are met.
Effect:
The City may not be in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that the City: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed and, (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development
AL No. 14.239 HOME Investment Partnerships Program
Material Weakness in Internal Controls and Noncompliance over Program Income
Repeat Finding: No
Condition:
For 10 out of 10 selections, we were unable to agree the program income amount to the general
ledger to ensure funds are properly recorded in the accounting records.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1).
program documentation; (2). timesheets, (3) deliverables, (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency does not have controls in place to ensure program income requirements are met.
Effect:
The City may not be in compliance with the program income requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with program
income requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development
AL No. 14.239 HOME Investment Partnerships Program
Significant Deficiency in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: No
Condition:
For 1 out of 40 selections, the Physical Inspection Findings and Notice of Corrective Measures
letter did not have the compliance officer's approval.
For 2 out of 40 selections, management was unable to provide support for verification of inspection
for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1).
program documentation; (2). timesheets, (3) deliverables, (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency does not have controls in place to ensure requirements around housing quality
standards are met.
Effect:
The City may not be in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that the City: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed and, (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development
AL No. 14.239 HOME Investment Partnerships Program
Material Weakness in Internal Controls and Noncompliance over Program Income
Repeat Finding: No
Condition:
For 10 out of 10 selections, we were unable to agree the program income amount to the general
ledger to ensure funds are properly recorded in the accounting records.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1).
program documentation; (2). timesheets, (3) deliverables, (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency does not have controls in place to ensure program income requirements are met.
Effect:
The City may not be in compliance with the program income requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with program
income requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development
AL No. 14.239 HOME Investment Partnerships Program
Significant Deficiency in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: No
Condition:
For 1 out of 40 selections, the Physical Inspection Findings and Notice of Corrective Measures
letter did not have the compliance officer's approval.
For 2 out of 40 selections, management was unable to provide support for verification of inspection
for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1).
program documentation; (2). timesheets, (3) deliverables, (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency does not have controls in place to ensure requirements around housing quality
standards are met.
Effect:
The City may not be in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that the City: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed and, (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 5 out of 13 selections, the support did not reconcile to the drawdown amount in the Federal
database.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City was not in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Eligibility
Repeat Finding: Yes; 2022-008
Condition:
For 14 out of 40 selections, Mayor’s Office of Homeless Services (MOHS) management did not
have evidence of case manager review of the participant file for eligibility requirements.
For 25 out of 40 selections, MOHS management was unable to provide evidence that property
inspection was performed during the fiscal year.
For 25 out of 40 selections, MOHS management was unable to provide evidence of third-party
verifications or documentation of expected income, assets, unusual medical expenses, and any
other pertinent information.
For 6 out of 40 selections, MOHS management was unable to provide support to verify the rent
reasonableness.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, a person eligible for assistance under this
program means a person with HIV or AIDS who is a low-income individual and the person’s
family, including persons important to their care or well-being, as defined in 24 CFR section 574.3.
The eligibility of those tenants who were admitted to the program should be determined by (1)
obtaining applications that contain all the information needed to determine eligibility, including
diagnosis, documentation of housing need, income, rent, and order of selection; and (2) obtaining
third party verifications or documentation of expected income, assets, unusual medical expenses,
and any other pertinent information.
Per 24 CFR §574.320, the rent charged for a unit must be reasonable in relation to rents currently
being charged for comparable units in the private unassisted market and must not be in excess of
rents currently being charged by the owner for comparable unassisted units.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not have proper controls in place to ensure the eligibility requirements of the grant
were met.
Effect:
MOHS was not be in compliance with the eligibility requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) follow AM 413-60 and AM 413-61 for documentation and
retention of the review and approval of eligibility criteria; and (2) provide training about
procedures related to the documentation of eligibility evaluations.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-009
Condition:
The Federal Financial Report provided by Mayor’s Office of Homeless Services (MOHS)
management was not submitted in a timely manner.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, an entity must complete the SF-425, Federal
Financial Report and the Integrated Disbursement Information System (IDIS) (OMB No.
25060077) to be in compliance with the financial reporting requirements.
Cause:
MOHS does not have controls in place to ensure reports are filed timely.
Effect:
Reports due to the Federal government may be late.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to ensure compliance with reporting
requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: Yes; 2022-010
Condition:
For 3 out of 3 selections, the Federal award identification number (FAIN) and the subrecipient's
unique entity identifier (UEI) were not disclosed on the subaward.
For 3 out of 3 selections, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Pursuant to 31 USC 7502(f)(2) (Single Audit Act Amendments of 1996 (Pub. L. No. 104-156)), 2
CFR sections 200.330, .331, and .501(h), a pass-through entity must identify the award and
applicable requirements, evaluate risk, monitor, and ensure accountability of subrecipients.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2)
The results of previous audits including whether or not the subrecipient receives a Single Audit.
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Mayor’s Office of Homeless Services (MOHS) did not maintain adequate documentation of
the requirements included in Uniform Guidance related to procedures required for subrecipient
monitoring.
Effect:
MOHS was not in compliance with Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS establish and implement controls for the program and prepare and
maintain a written plan to perform risk assessments on potential subrecipients. Additionally, we
recommend that MOHS provides training on the Uniform Guidance requirements related to
subrecipient monitoring.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: Yes; 2022-011
Condition:
For 25 out of 40 selections, the Mayor’s Office of Homeless Services (MOHS) management was
unable to provide support for verification of property inspection for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not perform the inspections as required.
Effect:
MOHS was not in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed, and (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 5 out of 13 selections, the support did not reconcile to the drawdown amount in the Federal
database.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City was not in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Eligibility
Repeat Finding: Yes; 2022-008
Condition:
For 14 out of 40 selections, Mayor’s Office of Homeless Services (MOHS) management did not
have evidence of case manager review of the participant file for eligibility requirements.
For 25 out of 40 selections, MOHS management was unable to provide evidence that property
inspection was performed during the fiscal year.
For 25 out of 40 selections, MOHS management was unable to provide evidence of third-party
verifications or documentation of expected income, assets, unusual medical expenses, and any
other pertinent information.
For 6 out of 40 selections, MOHS management was unable to provide support to verify the rent
reasonableness.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, a person eligible for assistance under this
program means a person with HIV or AIDS who is a low-income individual and the person’s
family, including persons important to their care or well-being, as defined in 24 CFR section 574.3.
The eligibility of those tenants who were admitted to the program should be determined by (1)
obtaining applications that contain all the information needed to determine eligibility, including
diagnosis, documentation of housing need, income, rent, and order of selection; and (2) obtaining
third party verifications or documentation of expected income, assets, unusual medical expenses,
and any other pertinent information.
Per 24 CFR §574.320, the rent charged for a unit must be reasonable in relation to rents currently
being charged for comparable units in the private unassisted market and must not be in excess of
rents currently being charged by the owner for comparable unassisted units.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not have proper controls in place to ensure the eligibility requirements of the grant
were met.
Effect:
MOHS was not be in compliance with the eligibility requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) follow AM 413-60 and AM 413-61 for documentation and
retention of the review and approval of eligibility criteria; and (2) provide training about
procedures related to the documentation of eligibility evaluations.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-009
Condition:
The Federal Financial Report provided by Mayor’s Office of Homeless Services (MOHS)
management was not submitted in a timely manner.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, an entity must complete the SF-425, Federal
Financial Report and the Integrated Disbursement Information System (IDIS) (OMB No.
25060077) to be in compliance with the financial reporting requirements.
Cause:
MOHS does not have controls in place to ensure reports are filed timely.
Effect:
Reports due to the Federal government may be late.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to ensure compliance with reporting
requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: Yes; 2022-010
Condition:
For 3 out of 3 selections, the Federal award identification number (FAIN) and the subrecipient's
unique entity identifier (UEI) were not disclosed on the subaward.
For 3 out of 3 selections, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Pursuant to 31 USC 7502(f)(2) (Single Audit Act Amendments of 1996 (Pub. L. No. 104-156)), 2
CFR sections 200.330, .331, and .501(h), a pass-through entity must identify the award and
applicable requirements, evaluate risk, monitor, and ensure accountability of subrecipients.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2)
The results of previous audits including whether or not the subrecipient receives a Single Audit.
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Mayor’s Office of Homeless Services (MOHS) did not maintain adequate documentation of
the requirements included in Uniform Guidance related to procedures required for subrecipient
monitoring.
Effect:
MOHS was not in compliance with Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS establish and implement controls for the program and prepare and
maintain a written plan to perform risk assessments on potential subrecipients. Additionally, we
recommend that MOHS provides training on the Uniform Guidance requirements related to
subrecipient monitoring.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: Yes; 2022-011
Condition:
For 25 out of 40 selections, the Mayor’s Office of Homeless Services (MOHS) management was
unable to provide support for verification of property inspection for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not perform the inspections as required.
Effect:
MOHS was not in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed, and (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 5 out of 13 selections, the support did not reconcile to the drawdown amount in the Federal
database.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City was not in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Eligibility
Repeat Finding: Yes; 2022-008
Condition:
For 14 out of 40 selections, Mayor’s Office of Homeless Services (MOHS) management did not
have evidence of case manager review of the participant file for eligibility requirements.
For 25 out of 40 selections, MOHS management was unable to provide evidence that property
inspection was performed during the fiscal year.
For 25 out of 40 selections, MOHS management was unable to provide evidence of third-party
verifications or documentation of expected income, assets, unusual medical expenses, and any
other pertinent information.
For 6 out of 40 selections, MOHS management was unable to provide support to verify the rent
reasonableness.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, a person eligible for assistance under this
program means a person with HIV or AIDS who is a low-income individual and the person’s
family, including persons important to their care or well-being, as defined in 24 CFR section 574.3.
The eligibility of those tenants who were admitted to the program should be determined by (1)
obtaining applications that contain all the information needed to determine eligibility, including
diagnosis, documentation of housing need, income, rent, and order of selection; and (2) obtaining
third party verifications or documentation of expected income, assets, unusual medical expenses,
and any other pertinent information.
Per 24 CFR §574.320, the rent charged for a unit must be reasonable in relation to rents currently
being charged for comparable units in the private unassisted market and must not be in excess of
rents currently being charged by the owner for comparable unassisted units.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not have proper controls in place to ensure the eligibility requirements of the grant
were met.
Effect:
MOHS was not be in compliance with the eligibility requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) follow AM 413-60 and AM 413-61 for documentation and
retention of the review and approval of eligibility criteria; and (2) provide training about
procedures related to the documentation of eligibility evaluations.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-009
Condition:
The Federal Financial Report provided by Mayor’s Office of Homeless Services (MOHS)
management was not submitted in a timely manner.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, an entity must complete the SF-425, Federal
Financial Report and the Integrated Disbursement Information System (IDIS) (OMB No.
25060077) to be in compliance with the financial reporting requirements.
Cause:
MOHS does not have controls in place to ensure reports are filed timely.
Effect:
Reports due to the Federal government may be late.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to ensure compliance with reporting
requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: Yes; 2022-010
Condition:
For 3 out of 3 selections, the Federal award identification number (FAIN) and the subrecipient's
unique entity identifier (UEI) were not disclosed on the subaward.
For 3 out of 3 selections, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Pursuant to 31 USC 7502(f)(2) (Single Audit Act Amendments of 1996 (Pub. L. No. 104-156)), 2
CFR sections 200.330, .331, and .501(h), a pass-through entity must identify the award and
applicable requirements, evaluate risk, monitor, and ensure accountability of subrecipients.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2)
The results of previous audits including whether or not the subrecipient receives a Single Audit.
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Mayor’s Office of Homeless Services (MOHS) did not maintain adequate documentation of
the requirements included in Uniform Guidance related to procedures required for subrecipient
monitoring.
Effect:
MOHS was not in compliance with Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS establish and implement controls for the program and prepare and
maintain a written plan to perform risk assessments on potential subrecipients. Additionally, we
recommend that MOHS provides training on the Uniform Guidance requirements related to
subrecipient monitoring.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: Yes; 2022-011
Condition:
For 25 out of 40 selections, the Mayor’s Office of Homeless Services (MOHS) management was
unable to provide support for verification of property inspection for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not perform the inspections as required.
Effect:
MOHS was not in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed, and (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 5 out of 13 selections, the support did not reconcile to the drawdown amount in the Federal
database.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City was not in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Eligibility
Repeat Finding: Yes; 2022-008
Condition:
For 14 out of 40 selections, Mayor’s Office of Homeless Services (MOHS) management did not
have evidence of case manager review of the participant file for eligibility requirements.
For 25 out of 40 selections, MOHS management was unable to provide evidence that property
inspection was performed during the fiscal year.
For 25 out of 40 selections, MOHS management was unable to provide evidence of third-party
verifications or documentation of expected income, assets, unusual medical expenses, and any
other pertinent information.
For 6 out of 40 selections, MOHS management was unable to provide support to verify the rent
reasonableness.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, a person eligible for assistance under this
program means a person with HIV or AIDS who is a low-income individual and the person’s
family, including persons important to their care or well-being, as defined in 24 CFR section 574.3.
The eligibility of those tenants who were admitted to the program should be determined by (1)
obtaining applications that contain all the information needed to determine eligibility, including
diagnosis, documentation of housing need, income, rent, and order of selection; and (2) obtaining
third party verifications or documentation of expected income, assets, unusual medical expenses,
and any other pertinent information.
Per 24 CFR §574.320, the rent charged for a unit must be reasonable in relation to rents currently
being charged for comparable units in the private unassisted market and must not be in excess of
rents currently being charged by the owner for comparable unassisted units.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not have proper controls in place to ensure the eligibility requirements of the grant
were met.
Effect:
MOHS was not be in compliance with the eligibility requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) follow AM 413-60 and AM 413-61 for documentation and
retention of the review and approval of eligibility criteria; and (2) provide training about
procedures related to the documentation of eligibility evaluations.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-009
Condition:
The Federal Financial Report provided by Mayor’s Office of Homeless Services (MOHS)
management was not submitted in a timely manner.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, an entity must complete the SF-425, Federal
Financial Report and the Integrated Disbursement Information System (IDIS) (OMB No.
25060077) to be in compliance with the financial reporting requirements.
Cause:
MOHS does not have controls in place to ensure reports are filed timely.
Effect:
Reports due to the Federal government may be late.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to ensure compliance with reporting
requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: Yes; 2022-010
Condition:
For 3 out of 3 selections, the Federal award identification number (FAIN) and the subrecipient's
unique entity identifier (UEI) were not disclosed on the subaward.
For 3 out of 3 selections, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Pursuant to 31 USC 7502(f)(2) (Single Audit Act Amendments of 1996 (Pub. L. No. 104-156)), 2
CFR sections 200.330, .331, and .501(h), a pass-through entity must identify the award and
applicable requirements, evaluate risk, monitor, and ensure accountability of subrecipients.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2)
The results of previous audits including whether or not the subrecipient receives a Single Audit.
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Mayor’s Office of Homeless Services (MOHS) did not maintain adequate documentation of
the requirements included in Uniform Guidance related to procedures required for subrecipient
monitoring.
Effect:
MOHS was not in compliance with Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS establish and implement controls for the program and prepare and
maintain a written plan to perform risk assessments on potential subrecipients. Additionally, we
recommend that MOHS provides training on the Uniform Guidance requirements related to
subrecipient monitoring.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: Yes; 2022-011
Condition:
For 25 out of 40 selections, the Mayor’s Office of Homeless Services (MOHS) management was
unable to provide support for verification of property inspection for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not perform the inspections as required.
Effect:
MOHS was not in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed, and (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 5 out of 13 selections, the support did not reconcile to the drawdown amount in the Federal
database.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City was not in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Eligibility
Repeat Finding: Yes; 2022-008
Condition:
For 14 out of 40 selections, Mayor’s Office of Homeless Services (MOHS) management did not
have evidence of case manager review of the participant file for eligibility requirements.
For 25 out of 40 selections, MOHS management was unable to provide evidence that property
inspection was performed during the fiscal year.
For 25 out of 40 selections, MOHS management was unable to provide evidence of third-party
verifications or documentation of expected income, assets, unusual medical expenses, and any
other pertinent information.
For 6 out of 40 selections, MOHS management was unable to provide support to verify the rent
reasonableness.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, a person eligible for assistance under this
program means a person with HIV or AIDS who is a low-income individual and the person’s
family, including persons important to their care or well-being, as defined in 24 CFR section 574.3.
The eligibility of those tenants who were admitted to the program should be determined by (1)
obtaining applications that contain all the information needed to determine eligibility, including
diagnosis, documentation of housing need, income, rent, and order of selection; and (2) obtaining
third party verifications or documentation of expected income, assets, unusual medical expenses,
and any other pertinent information.
Per 24 CFR §574.320, the rent charged for a unit must be reasonable in relation to rents currently
being charged for comparable units in the private unassisted market and must not be in excess of
rents currently being charged by the owner for comparable unassisted units.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not have proper controls in place to ensure the eligibility requirements of the grant
were met.
Effect:
MOHS was not be in compliance with the eligibility requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) follow AM 413-60 and AM 413-61 for documentation and
retention of the review and approval of eligibility criteria; and (2) provide training about
procedures related to the documentation of eligibility evaluations.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-009
Condition:
The Federal Financial Report provided by Mayor’s Office of Homeless Services (MOHS)
management was not submitted in a timely manner.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, an entity must complete the SF-425, Federal
Financial Report and the Integrated Disbursement Information System (IDIS) (OMB No.
25060077) to be in compliance with the financial reporting requirements.
Cause:
MOHS does not have controls in place to ensure reports are filed timely.
Effect:
Reports due to the Federal government may be late.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to ensure compliance with reporting
requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: Yes; 2022-010
Condition:
For 3 out of 3 selections, the Federal award identification number (FAIN) and the subrecipient's
unique entity identifier (UEI) were not disclosed on the subaward.
For 3 out of 3 selections, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Pursuant to 31 USC 7502(f)(2) (Single Audit Act Amendments of 1996 (Pub. L. No. 104-156)), 2
CFR sections 200.330, .331, and .501(h), a pass-through entity must identify the award and
applicable requirements, evaluate risk, monitor, and ensure accountability of subrecipients.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2)
The results of previous audits including whether or not the subrecipient receives a Single Audit.
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Mayor’s Office of Homeless Services (MOHS) did not maintain adequate documentation of
the requirements included in Uniform Guidance related to procedures required for subrecipient
monitoring.
Effect:
MOHS was not in compliance with Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS establish and implement controls for the program and prepare and
maintain a written plan to perform risk assessments on potential subrecipients. Additionally, we
recommend that MOHS provides training on the Uniform Guidance requirements related to
subrecipient monitoring.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: Yes; 2022-011
Condition:
For 25 out of 40 selections, the Mayor’s Office of Homeless Services (MOHS) management was
unable to provide support for verification of property inspection for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not perform the inspections as required.
Effect:
MOHS was not in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed, and (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 5 out of 13 selections, the support did not reconcile to the drawdown amount in the Federal
database.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City was not in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Eligibility
Repeat Finding: Yes; 2022-008
Condition:
For 14 out of 40 selections, Mayor’s Office of Homeless Services (MOHS) management did not
have evidence of case manager review of the participant file for eligibility requirements.
For 25 out of 40 selections, MOHS management was unable to provide evidence that property
inspection was performed during the fiscal year.
For 25 out of 40 selections, MOHS management was unable to provide evidence of third-party
verifications or documentation of expected income, assets, unusual medical expenses, and any
other pertinent information.
For 6 out of 40 selections, MOHS management was unable to provide support to verify the rent
reasonableness.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, a person eligible for assistance under this
program means a person with HIV or AIDS who is a low-income individual and the person’s
family, including persons important to their care or well-being, as defined in 24 CFR section 574.3.
The eligibility of those tenants who were admitted to the program should be determined by (1)
obtaining applications that contain all the information needed to determine eligibility, including
diagnosis, documentation of housing need, income, rent, and order of selection; and (2) obtaining
third party verifications or documentation of expected income, assets, unusual medical expenses,
and any other pertinent information.
Per 24 CFR §574.320, the rent charged for a unit must be reasonable in relation to rents currently
being charged for comparable units in the private unassisted market and must not be in excess of
rents currently being charged by the owner for comparable unassisted units.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not have proper controls in place to ensure the eligibility requirements of the grant
were met.
Effect:
MOHS was not be in compliance with the eligibility requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) follow AM 413-60 and AM 413-61 for documentation and
retention of the review and approval of eligibility criteria; and (2) provide training about
procedures related to the documentation of eligibility evaluations.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-009
Condition:
The Federal Financial Report provided by Mayor’s Office of Homeless Services (MOHS)
management was not submitted in a timely manner.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, an entity must complete the SF-425, Federal
Financial Report and the Integrated Disbursement Information System (IDIS) (OMB No.
25060077) to be in compliance with the financial reporting requirements.
Cause:
MOHS does not have controls in place to ensure reports are filed timely.
Effect:
Reports due to the Federal government may be late.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to ensure compliance with reporting
requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: Yes; 2022-010
Condition:
For 3 out of 3 selections, the Federal award identification number (FAIN) and the subrecipient's
unique entity identifier (UEI) were not disclosed on the subaward.
For 3 out of 3 selections, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Pursuant to 31 USC 7502(f)(2) (Single Audit Act Amendments of 1996 (Pub. L. No. 104-156)), 2
CFR sections 200.330, .331, and .501(h), a pass-through entity must identify the award and
applicable requirements, evaluate risk, monitor, and ensure accountability of subrecipients.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2)
The results of previous audits including whether or not the subrecipient receives a Single Audit.
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Mayor’s Office of Homeless Services (MOHS) did not maintain adequate documentation of
the requirements included in Uniform Guidance related to procedures required for subrecipient
monitoring.
Effect:
MOHS was not in compliance with Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS establish and implement controls for the program and prepare and
maintain a written plan to perform risk assessments on potential subrecipients. Additionally, we
recommend that MOHS provides training on the Uniform Guidance requirements related to
subrecipient monitoring.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: Yes; 2022-011
Condition:
For 25 out of 40 selections, the Mayor’s Office of Homeless Services (MOHS) management was
unable to provide support for verification of property inspection for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not perform the inspections as required.
Effect:
MOHS was not in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed, and (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 5 out of 13 selections, the support did not reconcile to the drawdown amount in the Federal
database.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City was not in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Eligibility
Repeat Finding: Yes; 2022-008
Condition:
For 14 out of 40 selections, Mayor’s Office of Homeless Services (MOHS) management did not
have evidence of case manager review of the participant file for eligibility requirements.
For 25 out of 40 selections, MOHS management was unable to provide evidence that property
inspection was performed during the fiscal year.
For 25 out of 40 selections, MOHS management was unable to provide evidence of third-party
verifications or documentation of expected income, assets, unusual medical expenses, and any
other pertinent information.
For 6 out of 40 selections, MOHS management was unable to provide support to verify the rent
reasonableness.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, a person eligible for assistance under this
program means a person with HIV or AIDS who is a low-income individual and the person’s
family, including persons important to their care or well-being, as defined in 24 CFR section 574.3.
The eligibility of those tenants who were admitted to the program should be determined by (1)
obtaining applications that contain all the information needed to determine eligibility, including
diagnosis, documentation of housing need, income, rent, and order of selection; and (2) obtaining
third party verifications or documentation of expected income, assets, unusual medical expenses,
and any other pertinent information.
Per 24 CFR §574.320, the rent charged for a unit must be reasonable in relation to rents currently
being charged for comparable units in the private unassisted market and must not be in excess of
rents currently being charged by the owner for comparable unassisted units.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not have proper controls in place to ensure the eligibility requirements of the grant
were met.
Effect:
MOHS was not be in compliance with the eligibility requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) follow AM 413-60 and AM 413-61 for documentation and
retention of the review and approval of eligibility criteria; and (2) provide training about
procedures related to the documentation of eligibility evaluations.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-009
Condition:
The Federal Financial Report provided by Mayor’s Office of Homeless Services (MOHS)
management was not submitted in a timely manner.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, an entity must complete the SF-425, Federal
Financial Report and the Integrated Disbursement Information System (IDIS) (OMB No.
25060077) to be in compliance with the financial reporting requirements.
Cause:
MOHS does not have controls in place to ensure reports are filed timely.
Effect:
Reports due to the Federal government may be late.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to ensure compliance with reporting
requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: Yes; 2022-010
Condition:
For 3 out of 3 selections, the Federal award identification number (FAIN) and the subrecipient's
unique entity identifier (UEI) were not disclosed on the subaward.
For 3 out of 3 selections, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Pursuant to 31 USC 7502(f)(2) (Single Audit Act Amendments of 1996 (Pub. L. No. 104-156)), 2
CFR sections 200.330, .331, and .501(h), a pass-through entity must identify the award and
applicable requirements, evaluate risk, monitor, and ensure accountability of subrecipients.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2)
The results of previous audits including whether or not the subrecipient receives a Single Audit.
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Mayor’s Office of Homeless Services (MOHS) did not maintain adequate documentation of
the requirements included in Uniform Guidance related to procedures required for subrecipient
monitoring.
Effect:
MOHS was not in compliance with Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS establish and implement controls for the program and prepare and
maintain a written plan to perform risk assessments on potential subrecipients. Additionally, we
recommend that MOHS provides training on the Uniform Guidance requirements related to
subrecipient monitoring.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: Yes; 2022-011
Condition:
For 25 out of 40 selections, the Mayor’s Office of Homeless Services (MOHS) management was
unable to provide support for verification of property inspection for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not perform the inspections as required.
Effect:
MOHS was not in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed, and (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 5 out of 13 selections, the support did not reconcile to the drawdown amount in the Federal
database.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City was not in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Eligibility
Repeat Finding: Yes; 2022-008
Condition:
For 14 out of 40 selections, Mayor’s Office of Homeless Services (MOHS) management did not
have evidence of case manager review of the participant file for eligibility requirements.
For 25 out of 40 selections, MOHS management was unable to provide evidence that property
inspection was performed during the fiscal year.
For 25 out of 40 selections, MOHS management was unable to provide evidence of third-party
verifications or documentation of expected income, assets, unusual medical expenses, and any
other pertinent information.
For 6 out of 40 selections, MOHS management was unable to provide support to verify the rent
reasonableness.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, a person eligible for assistance under this
program means a person with HIV or AIDS who is a low-income individual and the person’s
family, including persons important to their care or well-being, as defined in 24 CFR section 574.3.
The eligibility of those tenants who were admitted to the program should be determined by (1)
obtaining applications that contain all the information needed to determine eligibility, including
diagnosis, documentation of housing need, income, rent, and order of selection; and (2) obtaining
third party verifications or documentation of expected income, assets, unusual medical expenses,
and any other pertinent information.
Per 24 CFR §574.320, the rent charged for a unit must be reasonable in relation to rents currently
being charged for comparable units in the private unassisted market and must not be in excess of
rents currently being charged by the owner for comparable unassisted units.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not have proper controls in place to ensure the eligibility requirements of the grant
were met.
Effect:
MOHS was not be in compliance with the eligibility requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) follow AM 413-60 and AM 413-61 for documentation and
retention of the review and approval of eligibility criteria; and (2) provide training about
procedures related to the documentation of eligibility evaluations.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-009
Condition:
The Federal Financial Report provided by Mayor’s Office of Homeless Services (MOHS)
management was not submitted in a timely manner.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, an entity must complete the SF-425, Federal
Financial Report and the Integrated Disbursement Information System (IDIS) (OMB No.
25060077) to be in compliance with the financial reporting requirements.
Cause:
MOHS does not have controls in place to ensure reports are filed timely.
Effect:
Reports due to the Federal government may be late.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to ensure compliance with reporting
requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: Yes; 2022-010
Condition:
For 3 out of 3 selections, the Federal award identification number (FAIN) and the subrecipient's
unique entity identifier (UEI) were not disclosed on the subaward.
For 3 out of 3 selections, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Pursuant to 31 USC 7502(f)(2) (Single Audit Act Amendments of 1996 (Pub. L. No. 104-156)), 2
CFR sections 200.330, .331, and .501(h), a pass-through entity must identify the award and
applicable requirements, evaluate risk, monitor, and ensure accountability of subrecipients.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2)
The results of previous audits including whether or not the subrecipient receives a Single Audit.
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Mayor’s Office of Homeless Services (MOHS) did not maintain adequate documentation of
the requirements included in Uniform Guidance related to procedures required for subrecipient
monitoring.
Effect:
MOHS was not in compliance with Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS establish and implement controls for the program and prepare and
maintain a written plan to perform risk assessments on potential subrecipients. Additionally, we
recommend that MOHS provides training on the Uniform Guidance requirements related to
subrecipient monitoring.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: Yes; 2022-011
Condition:
For 25 out of 40 selections, the Mayor’s Office of Homeless Services (MOHS) management was
unable to provide support for verification of property inspection for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not perform the inspections as required.
Effect:
MOHS was not in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed, and (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 5 out of 13 selections, the support did not reconcile to the drawdown amount in the Federal
database.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City was not in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Eligibility
Repeat Finding: Yes; 2022-008
Condition:
For 14 out of 40 selections, Mayor’s Office of Homeless Services (MOHS) management did not
have evidence of case manager review of the participant file for eligibility requirements.
For 25 out of 40 selections, MOHS management was unable to provide evidence that property
inspection was performed during the fiscal year.
For 25 out of 40 selections, MOHS management was unable to provide evidence of third-party
verifications or documentation of expected income, assets, unusual medical expenses, and any
other pertinent information.
For 6 out of 40 selections, MOHS management was unable to provide support to verify the rent
reasonableness.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, a person eligible for assistance under this
program means a person with HIV or AIDS who is a low-income individual and the person’s
family, including persons important to their care or well-being, as defined in 24 CFR section 574.3.
The eligibility of those tenants who were admitted to the program should be determined by (1)
obtaining applications that contain all the information needed to determine eligibility, including
diagnosis, documentation of housing need, income, rent, and order of selection; and (2) obtaining
third party verifications or documentation of expected income, assets, unusual medical expenses,
and any other pertinent information.
Per 24 CFR §574.320, the rent charged for a unit must be reasonable in relation to rents currently
being charged for comparable units in the private unassisted market and must not be in excess of
rents currently being charged by the owner for comparable unassisted units.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not have proper controls in place to ensure the eligibility requirements of the grant
were met.
Effect:
MOHS was not be in compliance with the eligibility requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) follow AM 413-60 and AM 413-61 for documentation and
retention of the review and approval of eligibility criteria; and (2) provide training about
procedures related to the documentation of eligibility evaluations.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-009
Condition:
The Federal Financial Report provided by Mayor’s Office of Homeless Services (MOHS)
management was not submitted in a timely manner.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, an entity must complete the SF-425, Federal
Financial Report and the Integrated Disbursement Information System (IDIS) (OMB No.
25060077) to be in compliance with the financial reporting requirements.
Cause:
MOHS does not have controls in place to ensure reports are filed timely.
Effect:
Reports due to the Federal government may be late.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to ensure compliance with reporting
requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: Yes; 2022-010
Condition:
For 3 out of 3 selections, the Federal award identification number (FAIN) and the subrecipient's
unique entity identifier (UEI) were not disclosed on the subaward.
For 3 out of 3 selections, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Pursuant to 31 USC 7502(f)(2) (Single Audit Act Amendments of 1996 (Pub. L. No. 104-156)), 2
CFR sections 200.330, .331, and .501(h), a pass-through entity must identify the award and
applicable requirements, evaluate risk, monitor, and ensure accountability of subrecipients.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2)
The results of previous audits including whether or not the subrecipient receives a Single Audit.
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Mayor’s Office of Homeless Services (MOHS) did not maintain adequate documentation of
the requirements included in Uniform Guidance related to procedures required for subrecipient
monitoring.
Effect:
MOHS was not in compliance with Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS establish and implement controls for the program and prepare and
maintain a written plan to perform risk assessments on potential subrecipients. Additionally, we
recommend that MOHS provides training on the Uniform Guidance requirements related to
subrecipient monitoring.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: Yes; 2022-011
Condition:
For 25 out of 40 selections, the Mayor’s Office of Homeless Services (MOHS) management was
unable to provide support for verification of property inspection for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not perform the inspections as required.
Effect:
MOHS was not in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed, and (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.686 Ending the HIV Epidemic: A Plan for America
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 4 out of 4 selections, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City may not be in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.686 Ending the HIV Epidemic: A Plan for America
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amounts reported in the Federal Financial Report to ensure completeness, accuracy and
compliance with the required accounting basis.
For 1 out of 1 selection, we noted that the Federal Financial Report was not submitted timely.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Additionally, the grant agreement requires the Federal Financial Report to be submitted no later
than 90 days after the period of performance end date through recipient online accounts in the
Payment Management System.
Cause:
The agency could not reconcile information reported in the expenditure report to the state to the
underlying records. Finance and the agency use different parameters for running reports and
neither department reconciled the other reporting completed.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements. Additionally, there should be a process to ensure all reports are submitted
timely.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.686 Ending the HIV Epidemic: A Plan for America
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 1 out of 1 selection, management was unable to provide evidence that subrecipient monitoring
was performed to ensure compliance with accounting requirements.
For 1 out of 1 selection, we were unable to verify the subrecipient 's active registration on
SAM.gov.
For 1 out of 1 selection, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR §25.300:
(a) A recipient may not make a subaward to a subrecipient unless that subrecipient has obtained
and provided to the recipient a unique entity identifier. Subrecipients are not required to complete
full SAM registration to obtain a unique entity identifier. (b) A recipient must notify any potential
subrecipients that the recipient cannot make a subaward unless the subrecipient has obtained a
unique entity identifier as described in paragraph (a) of this section.
According to 2 CFR §200.332, all pass-through entities must: (a) Ensure that every subaward is
clearly identified to the subrecipient as a subaward and includes the Federal award identification
including the subrecipient's unique entity identifier, Federal Award Identification Number (FAIN),
identification of whether the award is R&D and indirect cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit
d) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(f) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Baltimore City Health Department (BCHD) did not have proper controls in place to ensure
the subrecipient monitoring requirements of the grant were met.
Effect:
BCHD was not be in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.686 Ending the HIV Epidemic: A Plan for America
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 4 out of 4 selections, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City may not be in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.686 Ending the HIV Epidemic: A Plan for America
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amounts reported in the Federal Financial Report to ensure completeness, accuracy and
compliance with the required accounting basis.
For 1 out of 1 selection, we noted that the Federal Financial Report was not submitted timely.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Additionally, the grant agreement requires the Federal Financial Report to be submitted no later
than 90 days after the period of performance end date through recipient online accounts in the
Payment Management System.
Cause:
The agency could not reconcile information reported in the expenditure report to the state to the
underlying records. Finance and the agency use different parameters for running reports and
neither department reconciled the other reporting completed.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements. Additionally, there should be a process to ensure all reports are submitted
timely.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.686 Ending the HIV Epidemic: A Plan for America
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 1 out of 1 selection, management was unable to provide evidence that subrecipient monitoring
was performed to ensure compliance with accounting requirements.
For 1 out of 1 selection, we were unable to verify the subrecipient 's active registration on
SAM.gov.
For 1 out of 1 selection, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR §25.300:
(a) A recipient may not make a subaward to a subrecipient unless that subrecipient has obtained
and provided to the recipient a unique entity identifier. Subrecipients are not required to complete
full SAM registration to obtain a unique entity identifier. (b) A recipient must notify any potential
subrecipients that the recipient cannot make a subaward unless the subrecipient has obtained a
unique entity identifier as described in paragraph (a) of this section.
According to 2 CFR §200.332, all pass-through entities must: (a) Ensure that every subaward is
clearly identified to the subrecipient as a subaward and includes the Federal award identification
including the subrecipient's unique entity identifier, Federal Award Identification Number (FAIN),
identification of whether the award is R&D and indirect cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit
d) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(f) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Baltimore City Health Department (BCHD) did not have proper controls in place to ensure
the subrecipient monitoring requirements of the grant were met.
Effect:
BCHD was not be in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.686 Ending the HIV Epidemic: A Plan for America
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 4 out of 4 selections, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City may not be in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.686 Ending the HIV Epidemic: A Plan for America
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amounts reported in the Federal Financial Report to ensure completeness, accuracy and
compliance with the required accounting basis.
For 1 out of 1 selection, we noted that the Federal Financial Report was not submitted timely.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Additionally, the grant agreement requires the Federal Financial Report to be submitted no later
than 90 days after the period of performance end date through recipient online accounts in the
Payment Management System.
Cause:
The agency could not reconcile information reported in the expenditure report to the state to the
underlying records. Finance and the agency use different parameters for running reports and
neither department reconciled the other reporting completed.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements. Additionally, there should be a process to ensure all reports are submitted
timely.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.686 Ending the HIV Epidemic: A Plan for America
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 1 out of 1 selection, management was unable to provide evidence that subrecipient monitoring
was performed to ensure compliance with accounting requirements.
For 1 out of 1 selection, we were unable to verify the subrecipient 's active registration on
SAM.gov.
For 1 out of 1 selection, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR §25.300:
(a) A recipient may not make a subaward to a subrecipient unless that subrecipient has obtained
and provided to the recipient a unique entity identifier. Subrecipients are not required to complete
full SAM registration to obtain a unique entity identifier. (b) A recipient must notify any potential
subrecipients that the recipient cannot make a subaward unless the subrecipient has obtained a
unique entity identifier as described in paragraph (a) of this section.
According to 2 CFR §200.332, all pass-through entities must: (a) Ensure that every subaward is
clearly identified to the subrecipient as a subaward and includes the Federal award identification
including the subrecipient's unique entity identifier, Federal Award Identification Number (FAIN),
identification of whether the award is R&D and indirect cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit
d) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(f) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Baltimore City Health Department (BCHD) did not have proper controls in place to ensure
the subrecipient monitoring requirements of the grant were met.
Effect:
BCHD was not be in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.767 Children’s Health Insurance Program (CHIP)
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-017
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amounts reported in the expenditure report to the state to ensure completeness, accuracy and
compliance with required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.767 Children’s Health Insurance Program (CHIP)
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-017
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amounts reported in the expenditure report to the state to ensure completeness, accuracy and
compliance with required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.767 Children’s Health Insurance Program (CHIP)
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-017
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amounts reported in the expenditure report to the state to ensure completeness, accuracy and
compliance with required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.767 Children’s Health Insurance Program (CHIP)
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-017
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amounts reported in the expenditure report to the state to ensure completeness, accuracy and
compliance with required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.767 Children’s Health Insurance Program (CHIP)
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-017
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amounts reported in the expenditure report to the state to ensure completeness, accuracy and
compliance with required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.767 Children’s Health Insurance Program (CHIP)
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-017
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amounts reported in the expenditure report to the state to ensure completeness, accuracy and
compliance with required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.778 Medical Assistance Program (Medicaid; Title XIX)
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-019
Condition:
For 3 out of 3 selections, we were unable to agree the expenditure details from the general ledger
to the amounts reported on the Medical Assistance Transportation report, the Maryland Children
Health Program (MCHP) - Eligibility report and the Administrative Care Coordination (ACC)
report to ensure completeness, accuracy and compliance with required accounting basis.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with report
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.778 Medical Assistance Program (Medicaid; Title XIX)
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-019
Condition:
For 3 out of 3 selections, we were unable to agree the expenditure details from the general ledger
to the amounts reported on the Medical Assistance Transportation report, the Maryland Children
Health Program (MCHP) - Eligibility report and the Administrative Care Coordination (ACC)
report to ensure completeness, accuracy and compliance with required accounting basis.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with report
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.778 Medical Assistance Program (Medicaid; Title XIX)
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-019
Condition:
For 3 out of 3 selections, we were unable to agree the expenditure details from the general ledger
to the amounts reported on the Medical Assistance Transportation report, the Maryland Children
Health Program (MCHP) - Eligibility report and the Administrative Care Coordination (ACC)
report to ensure completeness, accuracy and compliance with required accounting basis.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with report
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.778 Medical Assistance Program (Medicaid; Title XIX)
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-019
Condition:
For 3 out of 3 selections, we were unable to agree the expenditure details from the general ledger
to the amounts reported on the Medical Assistance Transportation report, the Maryland Children
Health Program (MCHP) - Eligibility report and the Administrative Care Coordination (ACC)
report to ensure completeness, accuracy and compliance with required accounting basis.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with report
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.778 Medical Assistance Program (Medicaid; Title XIX)
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-019
Condition:
For 3 out of 3 selections, we were unable to agree the expenditure details from the general ledger
to the amounts reported on the Medical Assistance Transportation report, the Maryland Children
Health Program (MCHP) - Eligibility report and the Administrative Care Coordination (ACC)
report to ensure completeness, accuracy and compliance with required accounting basis.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with report
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.914 HIV Emergency Relief Project Grants
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2020-020
Condition:
For 2 out of 2 selections, the drawdown request forms did not have the approval of the Grant
Service Director.
For 2 out of 2 selections, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency did not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.914 HIV Emergency Relief Project Grants
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 7 out of 7 selections, we were unable to verify the subrecipient's active registration on
SAM.gov.
For 7 out of 7 selections, there was no evidence that subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must: (a) Ensure that every subaward is
clearly identified to the subrecipient as a subaward and includes the Federal award identification
including the subrecipient's unique entity identifier, Federal Award Identification Number (FAIN),
identification of whether the award is R&D and indirect cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit (c)
Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
BCHD did not have proper controls in place to ensure the subrecipient monitoring requirements
of the grant were met.
Effect:
BCHD was not in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.914 HIV Emergency Relief Project Grants
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2020-020
Condition:
For 2 out of 2 selections, the drawdown request forms did not have the approval of the Grant
Service Director.
For 2 out of 2 selections, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency did not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.914 HIV Emergency Relief Project Grants
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 7 out of 7 selections, we were unable to verify the subrecipient's active registration on
SAM.gov.
For 7 out of 7 selections, there was no evidence that subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must: (a) Ensure that every subaward is
clearly identified to the subrecipient as a subaward and includes the Federal award identification
including the subrecipient's unique entity identifier, Federal Award Identification Number (FAIN),
identification of whether the award is R&D and indirect cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit (c)
Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
BCHD did not have proper controls in place to ensure the subrecipient monitoring requirements
of the grant were met.
Effect:
BCHD was not in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.914 HIV Emergency Relief Project Grants
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2020-020
Condition:
For 2 out of 2 selections, the drawdown request forms did not have the approval of the Grant
Service Director.
For 2 out of 2 selections, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency did not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.914 HIV Emergency Relief Project Grants
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 7 out of 7 selections, we were unable to verify the subrecipient's active registration on
SAM.gov.
For 7 out of 7 selections, there was no evidence that subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must: (a) Ensure that every subaward is
clearly identified to the subrecipient as a subaward and includes the Federal award identification
including the subrecipient's unique entity identifier, Federal Award Identification Number (FAIN),
identification of whether the award is R&D and indirect cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit (c)
Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
BCHD did not have proper controls in place to ensure the subrecipient monitoring requirements
of the grant were met.
Effect:
BCHD was not in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.914 HIV Emergency Relief Project Grants
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2020-020
Condition:
For 2 out of 2 selections, the drawdown request forms did not have the approval of the Grant
Service Director.
For 2 out of 2 selections, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency did not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.914 HIV Emergency Relief Project Grants
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 7 out of 7 selections, we were unable to verify the subrecipient's active registration on
SAM.gov.
For 7 out of 7 selections, there was no evidence that subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must: (a) Ensure that every subaward is
clearly identified to the subrecipient as a subaward and includes the Federal award identification
including the subrecipient's unique entity identifier, Federal Award Identification Number (FAIN),
identification of whether the award is R&D and indirect cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit (c)
Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
BCHD did not have proper controls in place to ensure the subrecipient monitoring requirements
of the grant were met.
Effect:
BCHD was not in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.914 HIV Emergency Relief Project Grants
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2020-020
Condition:
For 2 out of 2 selections, the drawdown request forms did not have the approval of the Grant
Service Director.
For 2 out of 2 selections, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency did not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.914 HIV Emergency Relief Project Grants
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 7 out of 7 selections, we were unable to verify the subrecipient's active registration on
SAM.gov.
For 7 out of 7 selections, there was no evidence that subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must: (a) Ensure that every subaward is
clearly identified to the subrecipient as a subaward and includes the Federal award identification
including the subrecipient's unique entity identifier, Federal Award Identification Number (FAIN),
identification of whether the award is R&D and indirect cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit (c)
Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
BCHD did not have proper controls in place to ensure the subrecipient monitoring requirements
of the grant were met.
Effect:
BCHD was not in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2022-021
Condition:
For 1 out of 1 selection, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City may not be in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-023
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amount reported in the Federal Financial Report to ensure completeness, accuracy and
compliance with the required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information reported in the expenditure report to the state to the
underlying records. Finance and the agency use different parameters for running reports and
neither department reconciled the other reporting completed.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 2 out of 4 selections, management was unable to provide evidence that subrecipient monitoring
was performed to ensure compliance with Federal requirements.
For 1 out of 4 selections, there was no approval on the subrecipient monitoring report.
For 4 out of 4 selections, we were unable to verify the subrecipient’s active registration on
SAM.gov.
For 4 out of 4 selections, there was no evidence that the subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Baltimore City Health Department (BCHD) did not have proper controls in place to ensure
the subrecipient monitoring requirements of the grant were met.
Effect:
BCHD may not be in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2022-021
Condition:
For 1 out of 1 selection, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City may not be in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-023
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amount reported in the Federal Financial Report to ensure completeness, accuracy and
compliance with the required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information reported in the expenditure report to the state to the
underlying records. Finance and the agency use different parameters for running reports and
neither department reconciled the other reporting completed.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 2 out of 4 selections, management was unable to provide evidence that subrecipient monitoring
was performed to ensure compliance with Federal requirements.
For 1 out of 4 selections, there was no approval on the subrecipient monitoring report.
For 4 out of 4 selections, we were unable to verify the subrecipient’s active registration on
SAM.gov.
For 4 out of 4 selections, there was no evidence that the subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Baltimore City Health Department (BCHD) did not have proper controls in place to ensure
the subrecipient monitoring requirements of the grant were met.
Effect:
BCHD may not be in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2022-021
Condition:
For 1 out of 1 selection, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City may not be in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-023
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amount reported in the Federal Financial Report to ensure completeness, accuracy and
compliance with the required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information reported in the expenditure report to the state to the
underlying records. Finance and the agency use different parameters for running reports and
neither department reconciled the other reporting completed.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 2 out of 4 selections, management was unable to provide evidence that subrecipient monitoring
was performed to ensure compliance with Federal requirements.
For 1 out of 4 selections, there was no approval on the subrecipient monitoring report.
For 4 out of 4 selections, we were unable to verify the subrecipient’s active registration on
SAM.gov.
For 4 out of 4 selections, there was no evidence that the subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Baltimore City Health Department (BCHD) did not have proper controls in place to ensure
the subrecipient monitoring requirements of the grant were met.
Effect:
BCHD may not be in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2022-021
Condition:
For 1 out of 1 selection, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City may not be in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-023
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amount reported in the Federal Financial Report to ensure completeness, accuracy and
compliance with the required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information reported in the expenditure report to the state to the
underlying records. Finance and the agency use different parameters for running reports and
neither department reconciled the other reporting completed.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 2 out of 4 selections, management was unable to provide evidence that subrecipient monitoring
was performed to ensure compliance with Federal requirements.
For 1 out of 4 selections, there was no approval on the subrecipient monitoring report.
For 4 out of 4 selections, we were unable to verify the subrecipient’s active registration on
SAM.gov.
For 4 out of 4 selections, there was no evidence that the subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Baltimore City Health Department (BCHD) did not have proper controls in place to ensure
the subrecipient monitoring requirements of the grant were met.
Effect:
BCHD may not be in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2022-021
Condition:
For 1 out of 1 selection, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City may not be in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-023
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amount reported in the Federal Financial Report to ensure completeness, accuracy and
compliance with the required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information reported in the expenditure report to the state to the
underlying records. Finance and the agency use different parameters for running reports and
neither department reconciled the other reporting completed.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 2 out of 4 selections, management was unable to provide evidence that subrecipient monitoring
was performed to ensure compliance with Federal requirements.
For 1 out of 4 selections, there was no approval on the subrecipient monitoring report.
For 4 out of 4 selections, we were unable to verify the subrecipient’s active registration on
SAM.gov.
For 4 out of 4 selections, there was no evidence that the subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Baltimore City Health Department (BCHD) did not have proper controls in place to ensure
the subrecipient monitoring requirements of the grant were met.
Effect:
BCHD may not be in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2022-021
Condition:
For 1 out of 1 selection, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City may not be in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-023
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amount reported in the Federal Financial Report to ensure completeness, accuracy and
compliance with the required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information reported in the expenditure report to the state to the
underlying records. Finance and the agency use different parameters for running reports and
neither department reconciled the other reporting completed.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 2 out of 4 selections, management was unable to provide evidence that subrecipient monitoring
was performed to ensure compliance with Federal requirements.
For 1 out of 4 selections, there was no approval on the subrecipient monitoring report.
For 4 out of 4 selections, we were unable to verify the subrecipient’s active registration on
SAM.gov.
For 4 out of 4 selections, there was no evidence that the subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Baltimore City Health Department (BCHD) did not have proper controls in place to ensure
the subrecipient monitoring requirements of the grant were met.
Effect:
BCHD may not be in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2022-021
Condition:
For 1 out of 1 selection, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City may not be in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-023
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amount reported in the Federal Financial Report to ensure completeness, accuracy and
compliance with the required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information reported in the expenditure report to the state to the
underlying records. Finance and the agency use different parameters for running reports and
neither department reconciled the other reporting completed.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 2 out of 4 selections, management was unable to provide evidence that subrecipient monitoring
was performed to ensure compliance with Federal requirements.
For 1 out of 4 selections, there was no approval on the subrecipient monitoring report.
For 4 out of 4 selections, we were unable to verify the subrecipient’s active registration on
SAM.gov.
For 4 out of 4 selections, there was no evidence that the subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Baltimore City Health Department (BCHD) did not have proper controls in place to ensure
the subrecipient monitoring requirements of the grant were met.
Effect:
BCHD may not be in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development
AL No. 14.239 HOME Investment Partnerships Program
Material Weakness in Internal Controls and Noncompliance over Program Income
Repeat Finding: No
Condition:
For 10 out of 10 selections, we were unable to agree the program income amount to the general
ledger to ensure funds are properly recorded in the accounting records.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1).
program documentation; (2). timesheets, (3) deliverables, (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency does not have controls in place to ensure program income requirements are met.
Effect:
The City may not be in compliance with the program income requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with program
income requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development
AL No. 14.239 HOME Investment Partnerships Program
Significant Deficiency in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: No
Condition:
For 1 out of 40 selections, the Physical Inspection Findings and Notice of Corrective Measures
letter did not have the compliance officer's approval.
For 2 out of 40 selections, management was unable to provide support for verification of inspection
for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1).
program documentation; (2). timesheets, (3) deliverables, (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency does not have controls in place to ensure requirements around housing quality
standards are met.
Effect:
The City may not be in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that the City: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed and, (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development
AL No. 14.239 HOME Investment Partnerships Program
Material Weakness in Internal Controls and Noncompliance over Program Income
Repeat Finding: No
Condition:
For 10 out of 10 selections, we were unable to agree the program income amount to the general
ledger to ensure funds are properly recorded in the accounting records.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1).
program documentation; (2). timesheets, (3) deliverables, (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency does not have controls in place to ensure program income requirements are met.
Effect:
The City may not be in compliance with the program income requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with program
income requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development
AL No. 14.239 HOME Investment Partnerships Program
Significant Deficiency in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: No
Condition:
For 1 out of 40 selections, the Physical Inspection Findings and Notice of Corrective Measures
letter did not have the compliance officer's approval.
For 2 out of 40 selections, management was unable to provide support for verification of inspection
for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1).
program documentation; (2). timesheets, (3) deliverables, (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency does not have controls in place to ensure requirements around housing quality
standards are met.
Effect:
The City may not be in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that the City: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed and, (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development
AL No. 14.239 HOME Investment Partnerships Program
Material Weakness in Internal Controls and Noncompliance over Program Income
Repeat Finding: No
Condition:
For 10 out of 10 selections, we were unable to agree the program income amount to the general
ledger to ensure funds are properly recorded in the accounting records.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1).
program documentation; (2). timesheets, (3) deliverables, (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency does not have controls in place to ensure program income requirements are met.
Effect:
The City may not be in compliance with the program income requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with program
income requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development
AL No. 14.239 HOME Investment Partnerships Program
Significant Deficiency in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: No
Condition:
For 1 out of 40 selections, the Physical Inspection Findings and Notice of Corrective Measures
letter did not have the compliance officer's approval.
For 2 out of 40 selections, management was unable to provide support for verification of inspection
for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1).
program documentation; (2). timesheets, (3) deliverables, (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency does not have controls in place to ensure requirements around housing quality
standards are met.
Effect:
The City may not be in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that the City: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed and, (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development
AL No. 14.239 HOME Investment Partnerships Program
Material Weakness in Internal Controls and Noncompliance over Program Income
Repeat Finding: No
Condition:
For 10 out of 10 selections, we were unable to agree the program income amount to the general
ledger to ensure funds are properly recorded in the accounting records.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1).
program documentation; (2). timesheets, (3) deliverables, (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency does not have controls in place to ensure program income requirements are met.
Effect:
The City may not be in compliance with the program income requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with program
income requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development
AL No. 14.239 HOME Investment Partnerships Program
Significant Deficiency in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: No
Condition:
For 1 out of 40 selections, the Physical Inspection Findings and Notice of Corrective Measures
letter did not have the compliance officer's approval.
For 2 out of 40 selections, management was unable to provide support for verification of inspection
for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1).
program documentation; (2). timesheets, (3) deliverables, (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency does not have controls in place to ensure requirements around housing quality
standards are met.
Effect:
The City may not be in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that the City: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed and, (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 5 out of 13 selections, the support did not reconcile to the drawdown amount in the Federal
database.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City was not in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Eligibility
Repeat Finding: Yes; 2022-008
Condition:
For 14 out of 40 selections, Mayor’s Office of Homeless Services (MOHS) management did not
have evidence of case manager review of the participant file for eligibility requirements.
For 25 out of 40 selections, MOHS management was unable to provide evidence that property
inspection was performed during the fiscal year.
For 25 out of 40 selections, MOHS management was unable to provide evidence of third-party
verifications or documentation of expected income, assets, unusual medical expenses, and any
other pertinent information.
For 6 out of 40 selections, MOHS management was unable to provide support to verify the rent
reasonableness.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, a person eligible for assistance under this
program means a person with HIV or AIDS who is a low-income individual and the person’s
family, including persons important to their care or well-being, as defined in 24 CFR section 574.3.
The eligibility of those tenants who were admitted to the program should be determined by (1)
obtaining applications that contain all the information needed to determine eligibility, including
diagnosis, documentation of housing need, income, rent, and order of selection; and (2) obtaining
third party verifications or documentation of expected income, assets, unusual medical expenses,
and any other pertinent information.
Per 24 CFR §574.320, the rent charged for a unit must be reasonable in relation to rents currently
being charged for comparable units in the private unassisted market and must not be in excess of
rents currently being charged by the owner for comparable unassisted units.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not have proper controls in place to ensure the eligibility requirements of the grant
were met.
Effect:
MOHS was not be in compliance with the eligibility requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) follow AM 413-60 and AM 413-61 for documentation and
retention of the review and approval of eligibility criteria; and (2) provide training about
procedures related to the documentation of eligibility evaluations.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-009
Condition:
The Federal Financial Report provided by Mayor’s Office of Homeless Services (MOHS)
management was not submitted in a timely manner.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, an entity must complete the SF-425, Federal
Financial Report and the Integrated Disbursement Information System (IDIS) (OMB No.
25060077) to be in compliance with the financial reporting requirements.
Cause:
MOHS does not have controls in place to ensure reports are filed timely.
Effect:
Reports due to the Federal government may be late.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to ensure compliance with reporting
requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: Yes; 2022-010
Condition:
For 3 out of 3 selections, the Federal award identification number (FAIN) and the subrecipient's
unique entity identifier (UEI) were not disclosed on the subaward.
For 3 out of 3 selections, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Pursuant to 31 USC 7502(f)(2) (Single Audit Act Amendments of 1996 (Pub. L. No. 104-156)), 2
CFR sections 200.330, .331, and .501(h), a pass-through entity must identify the award and
applicable requirements, evaluate risk, monitor, and ensure accountability of subrecipients.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2)
The results of previous audits including whether or not the subrecipient receives a Single Audit.
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Mayor’s Office of Homeless Services (MOHS) did not maintain adequate documentation of
the requirements included in Uniform Guidance related to procedures required for subrecipient
monitoring.
Effect:
MOHS was not in compliance with Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS establish and implement controls for the program and prepare and
maintain a written plan to perform risk assessments on potential subrecipients. Additionally, we
recommend that MOHS provides training on the Uniform Guidance requirements related to
subrecipient monitoring.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: Yes; 2022-011
Condition:
For 25 out of 40 selections, the Mayor’s Office of Homeless Services (MOHS) management was
unable to provide support for verification of property inspection for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not perform the inspections as required.
Effect:
MOHS was not in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed, and (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 5 out of 13 selections, the support did not reconcile to the drawdown amount in the Federal
database.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City was not in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Eligibility
Repeat Finding: Yes; 2022-008
Condition:
For 14 out of 40 selections, Mayor’s Office of Homeless Services (MOHS) management did not
have evidence of case manager review of the participant file for eligibility requirements.
For 25 out of 40 selections, MOHS management was unable to provide evidence that property
inspection was performed during the fiscal year.
For 25 out of 40 selections, MOHS management was unable to provide evidence of third-party
verifications or documentation of expected income, assets, unusual medical expenses, and any
other pertinent information.
For 6 out of 40 selections, MOHS management was unable to provide support to verify the rent
reasonableness.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, a person eligible for assistance under this
program means a person with HIV or AIDS who is a low-income individual and the person’s
family, including persons important to their care or well-being, as defined in 24 CFR section 574.3.
The eligibility of those tenants who were admitted to the program should be determined by (1)
obtaining applications that contain all the information needed to determine eligibility, including
diagnosis, documentation of housing need, income, rent, and order of selection; and (2) obtaining
third party verifications or documentation of expected income, assets, unusual medical expenses,
and any other pertinent information.
Per 24 CFR §574.320, the rent charged for a unit must be reasonable in relation to rents currently
being charged for comparable units in the private unassisted market and must not be in excess of
rents currently being charged by the owner for comparable unassisted units.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not have proper controls in place to ensure the eligibility requirements of the grant
were met.
Effect:
MOHS was not be in compliance with the eligibility requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) follow AM 413-60 and AM 413-61 for documentation and
retention of the review and approval of eligibility criteria; and (2) provide training about
procedures related to the documentation of eligibility evaluations.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-009
Condition:
The Federal Financial Report provided by Mayor’s Office of Homeless Services (MOHS)
management was not submitted in a timely manner.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, an entity must complete the SF-425, Federal
Financial Report and the Integrated Disbursement Information System (IDIS) (OMB No.
25060077) to be in compliance with the financial reporting requirements.
Cause:
MOHS does not have controls in place to ensure reports are filed timely.
Effect:
Reports due to the Federal government may be late.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to ensure compliance with reporting
requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: Yes; 2022-010
Condition:
For 3 out of 3 selections, the Federal award identification number (FAIN) and the subrecipient's
unique entity identifier (UEI) were not disclosed on the subaward.
For 3 out of 3 selections, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Pursuant to 31 USC 7502(f)(2) (Single Audit Act Amendments of 1996 (Pub. L. No. 104-156)), 2
CFR sections 200.330, .331, and .501(h), a pass-through entity must identify the award and
applicable requirements, evaluate risk, monitor, and ensure accountability of subrecipients.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2)
The results of previous audits including whether or not the subrecipient receives a Single Audit.
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Mayor’s Office of Homeless Services (MOHS) did not maintain adequate documentation of
the requirements included in Uniform Guidance related to procedures required for subrecipient
monitoring.
Effect:
MOHS was not in compliance with Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS establish and implement controls for the program and prepare and
maintain a written plan to perform risk assessments on potential subrecipients. Additionally, we
recommend that MOHS provides training on the Uniform Guidance requirements related to
subrecipient monitoring.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: Yes; 2022-011
Condition:
For 25 out of 40 selections, the Mayor’s Office of Homeless Services (MOHS) management was
unable to provide support for verification of property inspection for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not perform the inspections as required.
Effect:
MOHS was not in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed, and (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 5 out of 13 selections, the support did not reconcile to the drawdown amount in the Federal
database.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City was not in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Eligibility
Repeat Finding: Yes; 2022-008
Condition:
For 14 out of 40 selections, Mayor’s Office of Homeless Services (MOHS) management did not
have evidence of case manager review of the participant file for eligibility requirements.
For 25 out of 40 selections, MOHS management was unable to provide evidence that property
inspection was performed during the fiscal year.
For 25 out of 40 selections, MOHS management was unable to provide evidence of third-party
verifications or documentation of expected income, assets, unusual medical expenses, and any
other pertinent information.
For 6 out of 40 selections, MOHS management was unable to provide support to verify the rent
reasonableness.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, a person eligible for assistance under this
program means a person with HIV or AIDS who is a low-income individual and the person’s
family, including persons important to their care or well-being, as defined in 24 CFR section 574.3.
The eligibility of those tenants who were admitted to the program should be determined by (1)
obtaining applications that contain all the information needed to determine eligibility, including
diagnosis, documentation of housing need, income, rent, and order of selection; and (2) obtaining
third party verifications or documentation of expected income, assets, unusual medical expenses,
and any other pertinent information.
Per 24 CFR §574.320, the rent charged for a unit must be reasonable in relation to rents currently
being charged for comparable units in the private unassisted market and must not be in excess of
rents currently being charged by the owner for comparable unassisted units.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not have proper controls in place to ensure the eligibility requirements of the grant
were met.
Effect:
MOHS was not be in compliance with the eligibility requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) follow AM 413-60 and AM 413-61 for documentation and
retention of the review and approval of eligibility criteria; and (2) provide training about
procedures related to the documentation of eligibility evaluations.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-009
Condition:
The Federal Financial Report provided by Mayor’s Office of Homeless Services (MOHS)
management was not submitted in a timely manner.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, an entity must complete the SF-425, Federal
Financial Report and the Integrated Disbursement Information System (IDIS) (OMB No.
25060077) to be in compliance with the financial reporting requirements.
Cause:
MOHS does not have controls in place to ensure reports are filed timely.
Effect:
Reports due to the Federal government may be late.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to ensure compliance with reporting
requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: Yes; 2022-010
Condition:
For 3 out of 3 selections, the Federal award identification number (FAIN) and the subrecipient's
unique entity identifier (UEI) were not disclosed on the subaward.
For 3 out of 3 selections, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Pursuant to 31 USC 7502(f)(2) (Single Audit Act Amendments of 1996 (Pub. L. No. 104-156)), 2
CFR sections 200.330, .331, and .501(h), a pass-through entity must identify the award and
applicable requirements, evaluate risk, monitor, and ensure accountability of subrecipients.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2)
The results of previous audits including whether or not the subrecipient receives a Single Audit.
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Mayor’s Office of Homeless Services (MOHS) did not maintain adequate documentation of
the requirements included in Uniform Guidance related to procedures required for subrecipient
monitoring.
Effect:
MOHS was not in compliance with Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS establish and implement controls for the program and prepare and
maintain a written plan to perform risk assessments on potential subrecipients. Additionally, we
recommend that MOHS provides training on the Uniform Guidance requirements related to
subrecipient monitoring.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: Yes; 2022-011
Condition:
For 25 out of 40 selections, the Mayor’s Office of Homeless Services (MOHS) management was
unable to provide support for verification of property inspection for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not perform the inspections as required.
Effect:
MOHS was not in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed, and (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 5 out of 13 selections, the support did not reconcile to the drawdown amount in the Federal
database.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City was not in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Eligibility
Repeat Finding: Yes; 2022-008
Condition:
For 14 out of 40 selections, Mayor’s Office of Homeless Services (MOHS) management did not
have evidence of case manager review of the participant file for eligibility requirements.
For 25 out of 40 selections, MOHS management was unable to provide evidence that property
inspection was performed during the fiscal year.
For 25 out of 40 selections, MOHS management was unable to provide evidence of third-party
verifications or documentation of expected income, assets, unusual medical expenses, and any
other pertinent information.
For 6 out of 40 selections, MOHS management was unable to provide support to verify the rent
reasonableness.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, a person eligible for assistance under this
program means a person with HIV or AIDS who is a low-income individual and the person’s
family, including persons important to their care or well-being, as defined in 24 CFR section 574.3.
The eligibility of those tenants who were admitted to the program should be determined by (1)
obtaining applications that contain all the information needed to determine eligibility, including
diagnosis, documentation of housing need, income, rent, and order of selection; and (2) obtaining
third party verifications or documentation of expected income, assets, unusual medical expenses,
and any other pertinent information.
Per 24 CFR §574.320, the rent charged for a unit must be reasonable in relation to rents currently
being charged for comparable units in the private unassisted market and must not be in excess of
rents currently being charged by the owner for comparable unassisted units.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not have proper controls in place to ensure the eligibility requirements of the grant
were met.
Effect:
MOHS was not be in compliance with the eligibility requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) follow AM 413-60 and AM 413-61 for documentation and
retention of the review and approval of eligibility criteria; and (2) provide training about
procedures related to the documentation of eligibility evaluations.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-009
Condition:
The Federal Financial Report provided by Mayor’s Office of Homeless Services (MOHS)
management was not submitted in a timely manner.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, an entity must complete the SF-425, Federal
Financial Report and the Integrated Disbursement Information System (IDIS) (OMB No.
25060077) to be in compliance with the financial reporting requirements.
Cause:
MOHS does not have controls in place to ensure reports are filed timely.
Effect:
Reports due to the Federal government may be late.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to ensure compliance with reporting
requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: Yes; 2022-010
Condition:
For 3 out of 3 selections, the Federal award identification number (FAIN) and the subrecipient's
unique entity identifier (UEI) were not disclosed on the subaward.
For 3 out of 3 selections, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Pursuant to 31 USC 7502(f)(2) (Single Audit Act Amendments of 1996 (Pub. L. No. 104-156)), 2
CFR sections 200.330, .331, and .501(h), a pass-through entity must identify the award and
applicable requirements, evaluate risk, monitor, and ensure accountability of subrecipients.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2)
The results of previous audits including whether or not the subrecipient receives a Single Audit.
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Mayor’s Office of Homeless Services (MOHS) did not maintain adequate documentation of
the requirements included in Uniform Guidance related to procedures required for subrecipient
monitoring.
Effect:
MOHS was not in compliance with Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS establish and implement controls for the program and prepare and
maintain a written plan to perform risk assessments on potential subrecipients. Additionally, we
recommend that MOHS provides training on the Uniform Guidance requirements related to
subrecipient monitoring.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: Yes; 2022-011
Condition:
For 25 out of 40 selections, the Mayor’s Office of Homeless Services (MOHS) management was
unable to provide support for verification of property inspection for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not perform the inspections as required.
Effect:
MOHS was not in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed, and (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 5 out of 13 selections, the support did not reconcile to the drawdown amount in the Federal
database.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City was not in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Eligibility
Repeat Finding: Yes; 2022-008
Condition:
For 14 out of 40 selections, Mayor’s Office of Homeless Services (MOHS) management did not
have evidence of case manager review of the participant file for eligibility requirements.
For 25 out of 40 selections, MOHS management was unable to provide evidence that property
inspection was performed during the fiscal year.
For 25 out of 40 selections, MOHS management was unable to provide evidence of third-party
verifications or documentation of expected income, assets, unusual medical expenses, and any
other pertinent information.
For 6 out of 40 selections, MOHS management was unable to provide support to verify the rent
reasonableness.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, a person eligible for assistance under this
program means a person with HIV or AIDS who is a low-income individual and the person’s
family, including persons important to their care or well-being, as defined in 24 CFR section 574.3.
The eligibility of those tenants who were admitted to the program should be determined by (1)
obtaining applications that contain all the information needed to determine eligibility, including
diagnosis, documentation of housing need, income, rent, and order of selection; and (2) obtaining
third party verifications or documentation of expected income, assets, unusual medical expenses,
and any other pertinent information.
Per 24 CFR §574.320, the rent charged for a unit must be reasonable in relation to rents currently
being charged for comparable units in the private unassisted market and must not be in excess of
rents currently being charged by the owner for comparable unassisted units.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not have proper controls in place to ensure the eligibility requirements of the grant
were met.
Effect:
MOHS was not be in compliance with the eligibility requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) follow AM 413-60 and AM 413-61 for documentation and
retention of the review and approval of eligibility criteria; and (2) provide training about
procedures related to the documentation of eligibility evaluations.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-009
Condition:
The Federal Financial Report provided by Mayor’s Office of Homeless Services (MOHS)
management was not submitted in a timely manner.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, an entity must complete the SF-425, Federal
Financial Report and the Integrated Disbursement Information System (IDIS) (OMB No.
25060077) to be in compliance with the financial reporting requirements.
Cause:
MOHS does not have controls in place to ensure reports are filed timely.
Effect:
Reports due to the Federal government may be late.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to ensure compliance with reporting
requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: Yes; 2022-010
Condition:
For 3 out of 3 selections, the Federal award identification number (FAIN) and the subrecipient's
unique entity identifier (UEI) were not disclosed on the subaward.
For 3 out of 3 selections, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Pursuant to 31 USC 7502(f)(2) (Single Audit Act Amendments of 1996 (Pub. L. No. 104-156)), 2
CFR sections 200.330, .331, and .501(h), a pass-through entity must identify the award and
applicable requirements, evaluate risk, monitor, and ensure accountability of subrecipients.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2)
The results of previous audits including whether or not the subrecipient receives a Single Audit.
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Mayor’s Office of Homeless Services (MOHS) did not maintain adequate documentation of
the requirements included in Uniform Guidance related to procedures required for subrecipient
monitoring.
Effect:
MOHS was not in compliance with Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS establish and implement controls for the program and prepare and
maintain a written plan to perform risk assessments on potential subrecipients. Additionally, we
recommend that MOHS provides training on the Uniform Guidance requirements related to
subrecipient monitoring.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: Yes; 2022-011
Condition:
For 25 out of 40 selections, the Mayor’s Office of Homeless Services (MOHS) management was
unable to provide support for verification of property inspection for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not perform the inspections as required.
Effect:
MOHS was not in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed, and (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 5 out of 13 selections, the support did not reconcile to the drawdown amount in the Federal
database.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City was not in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Eligibility
Repeat Finding: Yes; 2022-008
Condition:
For 14 out of 40 selections, Mayor’s Office of Homeless Services (MOHS) management did not
have evidence of case manager review of the participant file for eligibility requirements.
For 25 out of 40 selections, MOHS management was unable to provide evidence that property
inspection was performed during the fiscal year.
For 25 out of 40 selections, MOHS management was unable to provide evidence of third-party
verifications or documentation of expected income, assets, unusual medical expenses, and any
other pertinent information.
For 6 out of 40 selections, MOHS management was unable to provide support to verify the rent
reasonableness.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, a person eligible for assistance under this
program means a person with HIV or AIDS who is a low-income individual and the person’s
family, including persons important to their care or well-being, as defined in 24 CFR section 574.3.
The eligibility of those tenants who were admitted to the program should be determined by (1)
obtaining applications that contain all the information needed to determine eligibility, including
diagnosis, documentation of housing need, income, rent, and order of selection; and (2) obtaining
third party verifications or documentation of expected income, assets, unusual medical expenses,
and any other pertinent information.
Per 24 CFR §574.320, the rent charged for a unit must be reasonable in relation to rents currently
being charged for comparable units in the private unassisted market and must not be in excess of
rents currently being charged by the owner for comparable unassisted units.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not have proper controls in place to ensure the eligibility requirements of the grant
were met.
Effect:
MOHS was not be in compliance with the eligibility requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) follow AM 413-60 and AM 413-61 for documentation and
retention of the review and approval of eligibility criteria; and (2) provide training about
procedures related to the documentation of eligibility evaluations.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-009
Condition:
The Federal Financial Report provided by Mayor’s Office of Homeless Services (MOHS)
management was not submitted in a timely manner.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, an entity must complete the SF-425, Federal
Financial Report and the Integrated Disbursement Information System (IDIS) (OMB No.
25060077) to be in compliance with the financial reporting requirements.
Cause:
MOHS does not have controls in place to ensure reports are filed timely.
Effect:
Reports due to the Federal government may be late.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to ensure compliance with reporting
requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: Yes; 2022-010
Condition:
For 3 out of 3 selections, the Federal award identification number (FAIN) and the subrecipient's
unique entity identifier (UEI) were not disclosed on the subaward.
For 3 out of 3 selections, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Pursuant to 31 USC 7502(f)(2) (Single Audit Act Amendments of 1996 (Pub. L. No. 104-156)), 2
CFR sections 200.330, .331, and .501(h), a pass-through entity must identify the award and
applicable requirements, evaluate risk, monitor, and ensure accountability of subrecipients.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2)
The results of previous audits including whether or not the subrecipient receives a Single Audit.
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Mayor’s Office of Homeless Services (MOHS) did not maintain adequate documentation of
the requirements included in Uniform Guidance related to procedures required for subrecipient
monitoring.
Effect:
MOHS was not in compliance with Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS establish and implement controls for the program and prepare and
maintain a written plan to perform risk assessments on potential subrecipients. Additionally, we
recommend that MOHS provides training on the Uniform Guidance requirements related to
subrecipient monitoring.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: Yes; 2022-011
Condition:
For 25 out of 40 selections, the Mayor’s Office of Homeless Services (MOHS) management was
unable to provide support for verification of property inspection for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not perform the inspections as required.
Effect:
MOHS was not in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed, and (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 5 out of 13 selections, the support did not reconcile to the drawdown amount in the Federal
database.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City was not in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Eligibility
Repeat Finding: Yes; 2022-008
Condition:
For 14 out of 40 selections, Mayor’s Office of Homeless Services (MOHS) management did not
have evidence of case manager review of the participant file for eligibility requirements.
For 25 out of 40 selections, MOHS management was unable to provide evidence that property
inspection was performed during the fiscal year.
For 25 out of 40 selections, MOHS management was unable to provide evidence of third-party
verifications or documentation of expected income, assets, unusual medical expenses, and any
other pertinent information.
For 6 out of 40 selections, MOHS management was unable to provide support to verify the rent
reasonableness.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, a person eligible for assistance under this
program means a person with HIV or AIDS who is a low-income individual and the person’s
family, including persons important to their care or well-being, as defined in 24 CFR section 574.3.
The eligibility of those tenants who were admitted to the program should be determined by (1)
obtaining applications that contain all the information needed to determine eligibility, including
diagnosis, documentation of housing need, income, rent, and order of selection; and (2) obtaining
third party verifications or documentation of expected income, assets, unusual medical expenses,
and any other pertinent information.
Per 24 CFR §574.320, the rent charged for a unit must be reasonable in relation to rents currently
being charged for comparable units in the private unassisted market and must not be in excess of
rents currently being charged by the owner for comparable unassisted units.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not have proper controls in place to ensure the eligibility requirements of the grant
were met.
Effect:
MOHS was not be in compliance with the eligibility requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) follow AM 413-60 and AM 413-61 for documentation and
retention of the review and approval of eligibility criteria; and (2) provide training about
procedures related to the documentation of eligibility evaluations.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-009
Condition:
The Federal Financial Report provided by Mayor’s Office of Homeless Services (MOHS)
management was not submitted in a timely manner.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, an entity must complete the SF-425, Federal
Financial Report and the Integrated Disbursement Information System (IDIS) (OMB No.
25060077) to be in compliance with the financial reporting requirements.
Cause:
MOHS does not have controls in place to ensure reports are filed timely.
Effect:
Reports due to the Federal government may be late.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to ensure compliance with reporting
requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: Yes; 2022-010
Condition:
For 3 out of 3 selections, the Federal award identification number (FAIN) and the subrecipient's
unique entity identifier (UEI) were not disclosed on the subaward.
For 3 out of 3 selections, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Pursuant to 31 USC 7502(f)(2) (Single Audit Act Amendments of 1996 (Pub. L. No. 104-156)), 2
CFR sections 200.330, .331, and .501(h), a pass-through entity must identify the award and
applicable requirements, evaluate risk, monitor, and ensure accountability of subrecipients.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2)
The results of previous audits including whether or not the subrecipient receives a Single Audit.
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Mayor’s Office of Homeless Services (MOHS) did not maintain adequate documentation of
the requirements included in Uniform Guidance related to procedures required for subrecipient
monitoring.
Effect:
MOHS was not in compliance with Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS establish and implement controls for the program and prepare and
maintain a written plan to perform risk assessments on potential subrecipients. Additionally, we
recommend that MOHS provides training on the Uniform Guidance requirements related to
subrecipient monitoring.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: Yes; 2022-011
Condition:
For 25 out of 40 selections, the Mayor’s Office of Homeless Services (MOHS) management was
unable to provide support for verification of property inspection for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not perform the inspections as required.
Effect:
MOHS was not in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed, and (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 5 out of 13 selections, the support did not reconcile to the drawdown amount in the Federal
database.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City was not in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Eligibility
Repeat Finding: Yes; 2022-008
Condition:
For 14 out of 40 selections, Mayor’s Office of Homeless Services (MOHS) management did not
have evidence of case manager review of the participant file for eligibility requirements.
For 25 out of 40 selections, MOHS management was unable to provide evidence that property
inspection was performed during the fiscal year.
For 25 out of 40 selections, MOHS management was unable to provide evidence of third-party
verifications or documentation of expected income, assets, unusual medical expenses, and any
other pertinent information.
For 6 out of 40 selections, MOHS management was unable to provide support to verify the rent
reasonableness.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, a person eligible for assistance under this
program means a person with HIV or AIDS who is a low-income individual and the person’s
family, including persons important to their care or well-being, as defined in 24 CFR section 574.3.
The eligibility of those tenants who were admitted to the program should be determined by (1)
obtaining applications that contain all the information needed to determine eligibility, including
diagnosis, documentation of housing need, income, rent, and order of selection; and (2) obtaining
third party verifications or documentation of expected income, assets, unusual medical expenses,
and any other pertinent information.
Per 24 CFR §574.320, the rent charged for a unit must be reasonable in relation to rents currently
being charged for comparable units in the private unassisted market and must not be in excess of
rents currently being charged by the owner for comparable unassisted units.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not have proper controls in place to ensure the eligibility requirements of the grant
were met.
Effect:
MOHS was not be in compliance with the eligibility requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) follow AM 413-60 and AM 413-61 for documentation and
retention of the review and approval of eligibility criteria; and (2) provide training about
procedures related to the documentation of eligibility evaluations.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-009
Condition:
The Federal Financial Report provided by Mayor’s Office of Homeless Services (MOHS)
management was not submitted in a timely manner.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, an entity must complete the SF-425, Federal
Financial Report and the Integrated Disbursement Information System (IDIS) (OMB No.
25060077) to be in compliance with the financial reporting requirements.
Cause:
MOHS does not have controls in place to ensure reports are filed timely.
Effect:
Reports due to the Federal government may be late.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to ensure compliance with reporting
requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: Yes; 2022-010
Condition:
For 3 out of 3 selections, the Federal award identification number (FAIN) and the subrecipient's
unique entity identifier (UEI) were not disclosed on the subaward.
For 3 out of 3 selections, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Pursuant to 31 USC 7502(f)(2) (Single Audit Act Amendments of 1996 (Pub. L. No. 104-156)), 2
CFR sections 200.330, .331, and .501(h), a pass-through entity must identify the award and
applicable requirements, evaluate risk, monitor, and ensure accountability of subrecipients.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2)
The results of previous audits including whether or not the subrecipient receives a Single Audit.
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Mayor’s Office of Homeless Services (MOHS) did not maintain adequate documentation of
the requirements included in Uniform Guidance related to procedures required for subrecipient
monitoring.
Effect:
MOHS was not in compliance with Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS establish and implement controls for the program and prepare and
maintain a written plan to perform risk assessments on potential subrecipients. Additionally, we
recommend that MOHS provides training on the Uniform Guidance requirements related to
subrecipient monitoring.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: Yes; 2022-011
Condition:
For 25 out of 40 selections, the Mayor’s Office of Homeless Services (MOHS) management was
unable to provide support for verification of property inspection for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not perform the inspections as required.
Effect:
MOHS was not in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed, and (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 5 out of 13 selections, the support did not reconcile to the drawdown amount in the Federal
database.
Criteria:
In accordance with 2 CFR §200.303: Internal Control, 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.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City was not in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Eligibility
Repeat Finding: Yes; 2022-008
Condition:
For 14 out of 40 selections, Mayor’s Office of Homeless Services (MOHS) management did not
have evidence of case manager review of the participant file for eligibility requirements.
For 25 out of 40 selections, MOHS management was unable to provide evidence that property
inspection was performed during the fiscal year.
For 25 out of 40 selections, MOHS management was unable to provide evidence of third-party
verifications or documentation of expected income, assets, unusual medical expenses, and any
other pertinent information.
For 6 out of 40 selections, MOHS management was unable to provide support to verify the rent
reasonableness.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, a person eligible for assistance under this
program means a person with HIV or AIDS who is a low-income individual and the person’s
family, including persons important to their care or well-being, as defined in 24 CFR section 574.3.
The eligibility of those tenants who were admitted to the program should be determined by (1)
obtaining applications that contain all the information needed to determine eligibility, including
diagnosis, documentation of housing need, income, rent, and order of selection; and (2) obtaining
third party verifications or documentation of expected income, assets, unusual medical expenses,
and any other pertinent information.
Per 24 CFR §574.320, the rent charged for a unit must be reasonable in relation to rents currently
being charged for comparable units in the private unassisted market and must not be in excess of
rents currently being charged by the owner for comparable unassisted units.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
Conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not have proper controls in place to ensure the eligibility requirements of the grant
were met.
Effect:
MOHS was not be in compliance with the eligibility requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) follow AM 413-60 and AM 413-61 for documentation and
retention of the review and approval of eligibility criteria; and (2) provide training about
procedures related to the documentation of eligibility evaluations.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-009
Condition:
The Federal Financial Report provided by Mayor’s Office of Homeless Services (MOHS)
management was not submitted in a timely manner.
Criteria:
In accordance with 2 CFR §200.303: 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.
According to the OMB Compliance Supplement, an entity must complete the SF-425, Federal
Financial Report and the Integrated Disbursement Information System (IDIS) (OMB No.
25060077) to be in compliance with the financial reporting requirements.
Cause:
MOHS does not have controls in place to ensure reports are filed timely.
Effect:
Reports due to the Federal government may be late.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to ensure compliance with reporting
requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: Yes; 2022-010
Condition:
For 3 out of 3 selections, the Federal award identification number (FAIN) and the subrecipient's
unique entity identifier (UEI) were not disclosed on the subaward.
For 3 out of 3 selections, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Pursuant to 31 USC 7502(f)(2) (Single Audit Act Amendments of 1996 (Pub. L. No. 104-156)), 2
CFR sections 200.330, .331, and .501(h), a pass-through entity must identify the award and
applicable requirements, evaluate risk, monitor, and ensure accountability of subrecipients.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2)
The results of previous audits including whether or not the subrecipient receives a Single Audit.
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Mayor’s Office of Homeless Services (MOHS) did not maintain adequate documentation of
the requirements included in Uniform Guidance related to procedures required for subrecipient
monitoring.
Effect:
MOHS was not in compliance with Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS establish and implement controls for the program and prepare and
maintain a written plan to perform risk assessments on potential subrecipients. Additionally, we
recommend that MOHS provides training on the Uniform Guidance requirements related to
subrecipient monitoring.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.241 Housing Opportunities for Persons with AIDS
Material Weakness in Internal Controls and Noncompliance over Special Tests – Housing
Quality Standards
Repeat Finding: Yes; 2022-011
Condition:
For 25 out of 40 selections, the Mayor’s Office of Homeless Services (MOHS) management was
unable to provide support for verification of property inspection for fiscal year 2023.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 24 CFR sections 574.310(b)(1)-(2): All housing that involves acquisition,
rehabilitation, conversion, lease, repair of facilities, new construction, project- or tenant-based
rental assistance (including assistance for shared housing arrangements), and operating costs must
meet various housing quality standards.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
MOHS did not perform the inspections as required.
Effect:
MOHS was not in compliance with the housing quality standards requirements under Uniform
Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that MOHS: (1) implement proper documentation controls to ensure the housing
quality standards requirements are being followed, and (2) follow the AM 413-61 retention policy.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.044, 93.045, 93.053 Aging Cluster
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
The Federal Financial Report provided by management did not include amounts spent under the
Federal award.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency did not have controls in place to ensure a complete Federal Financial Report was
submitted.
Effect:
Expenditures reported to the Federal government were inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.686 Ending the HIV Epidemic: A Plan for America
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 4 out of 4 selections, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City may not be in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.686 Ending the HIV Epidemic: A Plan for America
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amounts reported in the Federal Financial Report to ensure completeness, accuracy and
compliance with the required accounting basis.
For 1 out of 1 selection, we noted that the Federal Financial Report was not submitted timely.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Additionally, the grant agreement requires the Federal Financial Report to be submitted no later
than 90 days after the period of performance end date through recipient online accounts in the
Payment Management System.
Cause:
The agency could not reconcile information reported in the expenditure report to the state to the
underlying records. Finance and the agency use different parameters for running reports and
neither department reconciled the other reporting completed.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements. Additionally, there should be a process to ensure all reports are submitted
timely.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.686 Ending the HIV Epidemic: A Plan for America
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 1 out of 1 selection, management was unable to provide evidence that subrecipient monitoring
was performed to ensure compliance with accounting requirements.
For 1 out of 1 selection, we were unable to verify the subrecipient 's active registration on
SAM.gov.
For 1 out of 1 selection, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR §25.300:
(a) A recipient may not make a subaward to a subrecipient unless that subrecipient has obtained
and provided to the recipient a unique entity identifier. Subrecipients are not required to complete
full SAM registration to obtain a unique entity identifier. (b) A recipient must notify any potential
subrecipients that the recipient cannot make a subaward unless the subrecipient has obtained a
unique entity identifier as described in paragraph (a) of this section.
According to 2 CFR §200.332, all pass-through entities must: (a) Ensure that every subaward is
clearly identified to the subrecipient as a subaward and includes the Federal award identification
including the subrecipient's unique entity identifier, Federal Award Identification Number (FAIN),
identification of whether the award is R&D and indirect cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit
d) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(f) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Baltimore City Health Department (BCHD) did not have proper controls in place to ensure
the subrecipient monitoring requirements of the grant were met.
Effect:
BCHD was not be in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.686 Ending the HIV Epidemic: A Plan for America
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 4 out of 4 selections, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City may not be in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.686 Ending the HIV Epidemic: A Plan for America
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amounts reported in the Federal Financial Report to ensure completeness, accuracy and
compliance with the required accounting basis.
For 1 out of 1 selection, we noted that the Federal Financial Report was not submitted timely.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Additionally, the grant agreement requires the Federal Financial Report to be submitted no later
than 90 days after the period of performance end date through recipient online accounts in the
Payment Management System.
Cause:
The agency could not reconcile information reported in the expenditure report to the state to the
underlying records. Finance and the agency use different parameters for running reports and
neither department reconciled the other reporting completed.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements. Additionally, there should be a process to ensure all reports are submitted
timely.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.686 Ending the HIV Epidemic: A Plan for America
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 1 out of 1 selection, management was unable to provide evidence that subrecipient monitoring
was performed to ensure compliance with accounting requirements.
For 1 out of 1 selection, we were unable to verify the subrecipient 's active registration on
SAM.gov.
For 1 out of 1 selection, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR §25.300:
(a) A recipient may not make a subaward to a subrecipient unless that subrecipient has obtained
and provided to the recipient a unique entity identifier. Subrecipients are not required to complete
full SAM registration to obtain a unique entity identifier. (b) A recipient must notify any potential
subrecipients that the recipient cannot make a subaward unless the subrecipient has obtained a
unique entity identifier as described in paragraph (a) of this section.
According to 2 CFR §200.332, all pass-through entities must: (a) Ensure that every subaward is
clearly identified to the subrecipient as a subaward and includes the Federal award identification
including the subrecipient's unique entity identifier, Federal Award Identification Number (FAIN),
identification of whether the award is R&D and indirect cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit
d) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(f) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Baltimore City Health Department (BCHD) did not have proper controls in place to ensure
the subrecipient monitoring requirements of the grant were met.
Effect:
BCHD was not be in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.686 Ending the HIV Epidemic: A Plan for America
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: No
Condition:
For 4 out of 4 selections, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City may not be in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.686 Ending the HIV Epidemic: A Plan for America
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: No
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amounts reported in the Federal Financial Report to ensure completeness, accuracy and
compliance with the required accounting basis.
For 1 out of 1 selection, we noted that the Federal Financial Report was not submitted timely.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Additionally, the grant agreement requires the Federal Financial Report to be submitted no later
than 90 days after the period of performance end date through recipient online accounts in the
Payment Management System.
Cause:
The agency could not reconcile information reported in the expenditure report to the state to the
underlying records. Finance and the agency use different parameters for running reports and
neither department reconciled the other reporting completed.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements. Additionally, there should be a process to ensure all reports are submitted
timely.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.686 Ending the HIV Epidemic: A Plan for America
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 1 out of 1 selection, management was unable to provide evidence that subrecipient monitoring
was performed to ensure compliance with accounting requirements.
For 1 out of 1 selection, we were unable to verify the subrecipient 's active registration on
SAM.gov.
For 1 out of 1 selection, there was no evidence that the prior year Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR §25.300:
(a) A recipient may not make a subaward to a subrecipient unless that subrecipient has obtained
and provided to the recipient a unique entity identifier. Subrecipients are not required to complete
full SAM registration to obtain a unique entity identifier. (b) A recipient must notify any potential
subrecipients that the recipient cannot make a subaward unless the subrecipient has obtained a
unique entity identifier as described in paragraph (a) of this section.
According to 2 CFR §200.332, all pass-through entities must: (a) Ensure that every subaward is
clearly identified to the subrecipient as a subaward and includes the Federal award identification
including the subrecipient's unique entity identifier, Federal Award Identification Number (FAIN),
identification of whether the award is R&D and indirect cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit
d) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(f) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Baltimore City Health Department (BCHD) did not have proper controls in place to ensure
the subrecipient monitoring requirements of the grant were met.
Effect:
BCHD was not be in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.767 Children’s Health Insurance Program (CHIP)
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-017
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amounts reported in the expenditure report to the state to ensure completeness, accuracy and
compliance with required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.767 Children’s Health Insurance Program (CHIP)
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-017
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amounts reported in the expenditure report to the state to ensure completeness, accuracy and
compliance with required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.767 Children’s Health Insurance Program (CHIP)
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-017
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amounts reported in the expenditure report to the state to ensure completeness, accuracy and
compliance with required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.767 Children’s Health Insurance Program (CHIP)
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-017
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amounts reported in the expenditure report to the state to ensure completeness, accuracy and
compliance with required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.767 Children’s Health Insurance Program (CHIP)
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-017
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amounts reported in the expenditure report to the state to ensure completeness, accuracy and
compliance with required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.767 Children’s Health Insurance Program (CHIP)
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-017
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amounts reported in the expenditure report to the state to ensure completeness, accuracy and
compliance with required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.778 Medical Assistance Program (Medicaid; Title XIX)
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-019
Condition:
For 3 out of 3 selections, we were unable to agree the expenditure details from the general ledger
to the amounts reported on the Medical Assistance Transportation report, the Maryland Children
Health Program (MCHP) - Eligibility report and the Administrative Care Coordination (ACC)
report to ensure completeness, accuracy and compliance with required accounting basis.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with report
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.778 Medical Assistance Program (Medicaid; Title XIX)
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-019
Condition:
For 3 out of 3 selections, we were unable to agree the expenditure details from the general ledger
to the amounts reported on the Medical Assistance Transportation report, the Maryland Children
Health Program (MCHP) - Eligibility report and the Administrative Care Coordination (ACC)
report to ensure completeness, accuracy and compliance with required accounting basis.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with report
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.778 Medical Assistance Program (Medicaid; Title XIX)
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-019
Condition:
For 3 out of 3 selections, we were unable to agree the expenditure details from the general ledger
to the amounts reported on the Medical Assistance Transportation report, the Maryland Children
Health Program (MCHP) - Eligibility report and the Administrative Care Coordination (ACC)
report to ensure completeness, accuracy and compliance with required accounting basis.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with report
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.778 Medical Assistance Program (Medicaid; Title XIX)
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-019
Condition:
For 3 out of 3 selections, we were unable to agree the expenditure details from the general ledger
to the amounts reported on the Medical Assistance Transportation report, the Maryland Children
Health Program (MCHP) - Eligibility report and the Administrative Care Coordination (ACC)
report to ensure completeness, accuracy and compliance with required accounting basis.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with report
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.778 Medical Assistance Program (Medicaid; Title XIX)
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-019
Condition:
For 3 out of 3 selections, we were unable to agree the expenditure details from the general ledger
to the amounts reported on the Medical Assistance Transportation report, the Maryland Children
Health Program (MCHP) - Eligibility report and the Administrative Care Coordination (ACC)
report to ensure completeness, accuracy and compliance with required accounting basis.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information presented in the expenditure report to the general
ledger. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with report
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.914 HIV Emergency Relief Project Grants
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2020-020
Condition:
For 2 out of 2 selections, the drawdown request forms did not have the approval of the Grant
Service Director.
For 2 out of 2 selections, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency did not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.914 HIV Emergency Relief Project Grants
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 7 out of 7 selections, we were unable to verify the subrecipient's active registration on
SAM.gov.
For 7 out of 7 selections, there was no evidence that subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must: (a) Ensure that every subaward is
clearly identified to the subrecipient as a subaward and includes the Federal award identification
including the subrecipient's unique entity identifier, Federal Award Identification Number (FAIN),
identification of whether the award is R&D and indirect cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit (c)
Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
BCHD did not have proper controls in place to ensure the subrecipient monitoring requirements
of the grant were met.
Effect:
BCHD was not in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.914 HIV Emergency Relief Project Grants
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2020-020
Condition:
For 2 out of 2 selections, the drawdown request forms did not have the approval of the Grant
Service Director.
For 2 out of 2 selections, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency did not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.914 HIV Emergency Relief Project Grants
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 7 out of 7 selections, we were unable to verify the subrecipient's active registration on
SAM.gov.
For 7 out of 7 selections, there was no evidence that subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must: (a) Ensure that every subaward is
clearly identified to the subrecipient as a subaward and includes the Federal award identification
including the subrecipient's unique entity identifier, Federal Award Identification Number (FAIN),
identification of whether the award is R&D and indirect cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit (c)
Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
BCHD did not have proper controls in place to ensure the subrecipient monitoring requirements
of the grant were met.
Effect:
BCHD was not in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.914 HIV Emergency Relief Project Grants
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2020-020
Condition:
For 2 out of 2 selections, the drawdown request forms did not have the approval of the Grant
Service Director.
For 2 out of 2 selections, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency did not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.914 HIV Emergency Relief Project Grants
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 7 out of 7 selections, we were unable to verify the subrecipient's active registration on
SAM.gov.
For 7 out of 7 selections, there was no evidence that subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must: (a) Ensure that every subaward is
clearly identified to the subrecipient as a subaward and includes the Federal award identification
including the subrecipient's unique entity identifier, Federal Award Identification Number (FAIN),
identification of whether the award is R&D and indirect cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit (c)
Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
BCHD did not have proper controls in place to ensure the subrecipient monitoring requirements
of the grant were met.
Effect:
BCHD was not in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.914 HIV Emergency Relief Project Grants
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2020-020
Condition:
For 2 out of 2 selections, the drawdown request forms did not have the approval of the Grant
Service Director.
For 2 out of 2 selections, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency did not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.914 HIV Emergency Relief Project Grants
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 7 out of 7 selections, we were unable to verify the subrecipient's active registration on
SAM.gov.
For 7 out of 7 selections, there was no evidence that subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must: (a) Ensure that every subaward is
clearly identified to the subrecipient as a subaward and includes the Federal award identification
including the subrecipient's unique entity identifier, Federal Award Identification Number (FAIN),
identification of whether the award is R&D and indirect cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit (c)
Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
BCHD did not have proper controls in place to ensure the subrecipient monitoring requirements
of the grant were met.
Effect:
BCHD was not in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.914 HIV Emergency Relief Project Grants
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2020-020
Condition:
For 2 out of 2 selections, the drawdown request forms did not have the approval of the Grant
Service Director.
For 2 out of 2 selections, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each state must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency did not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.914 HIV Emergency Relief Project Grants
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 7 out of 7 selections, we were unable to verify the subrecipient's active registration on
SAM.gov.
For 7 out of 7 selections, there was no evidence that subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must: (a) Ensure that every subaward is
clearly identified to the subrecipient as a subaward and includes the Federal award identification
including the subrecipient's unique entity identifier, Federal Award Identification Number (FAIN),
identification of whether the award is R&D and indirect cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit (c)
Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
BCHD did not have proper controls in place to ensure the subrecipient monitoring requirements
of the grant were met.
Effect:
BCHD was not in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2022-021
Condition:
For 1 out of 1 selection, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City may not be in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-023
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amount reported in the Federal Financial Report to ensure completeness, accuracy and
compliance with the required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information reported in the expenditure report to the state to the
underlying records. Finance and the agency use different parameters for running reports and
neither department reconciled the other reporting completed.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 2 out of 4 selections, management was unable to provide evidence that subrecipient monitoring
was performed to ensure compliance with Federal requirements.
For 1 out of 4 selections, there was no approval on the subrecipient monitoring report.
For 4 out of 4 selections, we were unable to verify the subrecipient’s active registration on
SAM.gov.
For 4 out of 4 selections, there was no evidence that the subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Baltimore City Health Department (BCHD) did not have proper controls in place to ensure
the subrecipient monitoring requirements of the grant were met.
Effect:
BCHD may not be in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2022-021
Condition:
For 1 out of 1 selection, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City may not be in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-023
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amount reported in the Federal Financial Report to ensure completeness, accuracy and
compliance with the required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information reported in the expenditure report to the state to the
underlying records. Finance and the agency use different parameters for running reports and
neither department reconciled the other reporting completed.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 2 out of 4 selections, management was unable to provide evidence that subrecipient monitoring
was performed to ensure compliance with Federal requirements.
For 1 out of 4 selections, there was no approval on the subrecipient monitoring report.
For 4 out of 4 selections, we were unable to verify the subrecipient’s active registration on
SAM.gov.
For 4 out of 4 selections, there was no evidence that the subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Baltimore City Health Department (BCHD) did not have proper controls in place to ensure
the subrecipient monitoring requirements of the grant were met.
Effect:
BCHD may not be in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2022-021
Condition:
For 1 out of 1 selection, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City may not be in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-023
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amount reported in the Federal Financial Report to ensure completeness, accuracy and
compliance with the required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information reported in the expenditure report to the state to the
underlying records. Finance and the agency use different parameters for running reports and
neither department reconciled the other reporting completed.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 2 out of 4 selections, management was unable to provide evidence that subrecipient monitoring
was performed to ensure compliance with Federal requirements.
For 1 out of 4 selections, there was no approval on the subrecipient monitoring report.
For 4 out of 4 selections, we were unable to verify the subrecipient’s active registration on
SAM.gov.
For 4 out of 4 selections, there was no evidence that the subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Baltimore City Health Department (BCHD) did not have proper controls in place to ensure
the subrecipient monitoring requirements of the grant were met.
Effect:
BCHD may not be in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2022-021
Condition:
For 1 out of 1 selection, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City may not be in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-023
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amount reported in the Federal Financial Report to ensure completeness, accuracy and
compliance with the required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information reported in the expenditure report to the state to the
underlying records. Finance and the agency use different parameters for running reports and
neither department reconciled the other reporting completed.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 2 out of 4 selections, management was unable to provide evidence that subrecipient monitoring
was performed to ensure compliance with Federal requirements.
For 1 out of 4 selections, there was no approval on the subrecipient monitoring report.
For 4 out of 4 selections, we were unable to verify the subrecipient’s active registration on
SAM.gov.
For 4 out of 4 selections, there was no evidence that the subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Baltimore City Health Department (BCHD) did not have proper controls in place to ensure
the subrecipient monitoring requirements of the grant were met.
Effect:
BCHD may not be in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2022-021
Condition:
For 1 out of 1 selection, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City may not be in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-023
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amount reported in the Federal Financial Report to ensure completeness, accuracy and
compliance with the required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information reported in the expenditure report to the state to the
underlying records. Finance and the agency use different parameters for running reports and
neither department reconciled the other reporting completed.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 2 out of 4 selections, management was unable to provide evidence that subrecipient monitoring
was performed to ensure compliance with Federal requirements.
For 1 out of 4 selections, there was no approval on the subrecipient monitoring report.
For 4 out of 4 selections, we were unable to verify the subrecipient’s active registration on
SAM.gov.
For 4 out of 4 selections, there was no evidence that the subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Baltimore City Health Department (BCHD) did not have proper controls in place to ensure
the subrecipient monitoring requirements of the grant were met.
Effect:
BCHD may not be in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2022-021
Condition:
For 1 out of 1 selection, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City may not be in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-023
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amount reported in the Federal Financial Report to ensure completeness, accuracy and
compliance with the required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information reported in the expenditure report to the state to the
underlying records. Finance and the agency use different parameters for running reports and
neither department reconciled the other reporting completed.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 2 out of 4 selections, management was unable to provide evidence that subrecipient monitoring
was performed to ensure compliance with Federal requirements.
For 1 out of 4 selections, there was no approval on the subrecipient monitoring report.
For 4 out of 4 selections, we were unable to verify the subrecipient’s active registration on
SAM.gov.
For 4 out of 4 selections, there was no evidence that the subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Baltimore City Health Department (BCHD) did not have proper controls in place to ensure
the subrecipient monitoring requirements of the grant were met.
Effect:
BCHD may not be in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Cash Management
Repeat Finding: Yes; 2022-021
Condition:
For 1 out of 1 selection, we were unable to agree the drawdown amount to the general ledger to
ensure funds were being expended prior to requesting for reimbursement.
Criteria:
In accordance with 2 CFR 200.303: Internal Control, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
According to AM 413-60, Grant Documentation, Grant Manager/Program Manager/Director
conducts ongoing monitoring and control of all reimbursement receipts and deposits until grant
ends; as well as all program and sub-recipient (when applicable) documentation, to include: (1)
program documentation; (2) timesheets; (3) deliverables; (4) activities; (5) vendor payments; (6)
program data/charts/numbers; and (7) financial and compliance report.
According to AM 413-61, Grant Management Financial Reporting, Grant Manager/Program
Manager/Director maintains all documentation, either electronic or hard copy, for all Federally
funded grants for the term of the grant for a minimum of seven years for review and audit by the
granting agency or its designee.
Cause:
The agency could not reconcile information presented in the expenditure report to the underlying
records. Finance and the agency use different parameters for generating reports and there was no
documentation of the reconciling differences.
Effect:
The City may not be in compliance with the cash management requirements in accordance with
Uniform Guidance.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with cash
management requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-023
Condition:
For 1 out of 1 selection, we were unable to agree the expenditure details from the general ledger
to the amount reported in the Federal Financial Report to ensure completeness, accuracy and
compliance with the required accounting basis.
Criteria:
In accordance with 2 CFR §200.303, 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.
In accordance with 2 CFR 200.302: Financial management. (a) Each State must expend and
account for the Federal award in accordance with state laws and procedures for expending and
accounting for the state’s own funds. In addition, the state’s and the other non-Federal entity’s
financial management systems, including records documenting compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award, must be sufficient to permit the
preparation of reports required by general and program-specific terms and conditions; and the
tracing of funds to a level of expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and conditions of the Federal award.
Cause:
The agency could not reconcile information reported in the expenditure report to the state to the
underlying records. Finance and the agency use different parameters for running reports and
neither department reconciled the other reporting completed.
Effect:
Expenditures reported to the Federal government could be inaccurate.
Questioned Costs:
None.
Recommendation:
We recommend the City establish and implement a process to reconcile reports used by the various
departments for external reporting to the City’s internal records to validate compliance with
reporting requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of Health and Human Services
AL No. 93.940 HIV Prevention Activities Health Department Based
Material Weakness in Internal Controls and Noncompliance over Subrecipient Monitoring
Repeat Finding: No
Condition:
For 2 out of 4 selections, management was unable to provide evidence that subrecipient monitoring
was performed to ensure compliance with Federal requirements.
For 1 out of 4 selections, there was no approval on the subrecipient monitoring report.
For 4 out of 4 selections, we were unable to verify the subrecipient’s active registration on
SAM.gov.
For 4 out of 4 selections, there was no evidence that the subrecipients’ Single Audit Report was
reviewed.
Criteria:
In accordance with 2 CFR §200.303: 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.
In accordance with 2 CFR §25.300: (a) A recipient may not make a subaward to a subrecipient
unless that subrecipient has obtained and provided to the recipient a unique entity identifier.
Subrecipients are not required to complete full SAM registration to obtain a unique entity
identifier. (b) A recipient must notify any potential subrecipients that the recipient cannot make a
subaward unless the subrecipient has obtained a unique entity identifier as described in paragraph
(a) of this section.
According to 2 CFR §200.332, all pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes
the Federal award identification including the subrecipient's unique entity identifier, Federal
Award Identification Number (FAIN), identification of whether the award is R&D and indirect
cost rate for the Federal award.
(b) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration of
such factors as: (1) The subrecipient's prior experience with the same or similar subawards; (2) the
results of previous audits including whether or not the subrecipient receives a Single Audit
(c) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions
of the subaward; and that subaward performance goals are achieved.
(e) Verify that every subrecipient is audited as required by 2 CFR § 200.331 when it is expected
that the subrecipient's Federal awards expended during the respective fiscal year equaled or
exceeded the threshold set forth in § 200.501.
Cause:
The Baltimore City Health Department (BCHD) did not have proper controls in place to ensure
the subrecipient monitoring requirements of the grant were met.
Effect:
BCHD may not be in compliance with the subrecipient monitoring requirements of the grant.
Questioned Costs:
Unknown.
Recommendation:
We recommend the City establish and implement controls to maintain compliance with
subrecipient monitoring requirements.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
U.S. Department of the Treasury
AL No. 21.023 Emergency Rental Assistance Program
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-013
Condition:
Management was unable to provide evidence that the SF-425 Federal Financial Report was filed.
Criteria:
In accordance with 2 CFR §200.303: 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.
Additionally, financial and performance reporting under Uniform Guidance requires ERAP to
complete the SF-425, Federal Financial Report and the ERA Compliance Report.
Cause:
The Mayor’s Office of Children & Family Services (MOCFS) does not have controls in place to
ensure reporting requirements are met.
Effect:
Management was not in compliance with the reporting requirements of the grant.
Questioned Costs:
None.
Recommendation:
We recommend the department establish and implement controls to maintain compliance with
reporting requirements in accordance with Uniform Guidance.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes, 2022-006
Condition:
Finance is responsible for preparing the schedule of expenditures of Federal awards based upon
grant information obtained from the financial accounting records and other information provided
by each department or agency. In many instances, the detail expenditure information in the
accounting software differed from the expenditures reported by various City departments.
Additionally, expenditures related to sub-recipients, subcontractors, and beneficiaries are not
separately tracked in the general ledger.
Criteria:
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.
In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare
appropriate financial statements, including the schedule of expenditures of Federal awards in
accordance with §200.510 Financial statements.
In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal
awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period
covered by the auditee’s financial statements which must include the total Federal awards
expended as determined in accordance with §200.502 Basis for determining Federal awards
expended. While not required, the auditee may choose to provide information requested by Federal
awarding agencies and pass-through entities to make the schedule easier to use. For example, when
a Federal program has multiple Federal award years, the auditee may list the amount of Federal
awards expended for each Federal award year separately. At a minimum, the schedule must: (1)
List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster
name, list individual Federal programs within the cluster of programs, and provide the applicable
Federal agency name. For R&D, total Federal awards expended must be shown either by individual
Federal award or by Federal agency and major subdivision within the Federal agency. (2) For
Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included. (3) Provide total Federal awards
expended for each individual Federal program and the AL number or other identifying number
when the AL information is not available. For a cluster of programs, also provide the total for the
cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For
loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule
the balances outstanding at the end of the audit period. This is in addition to including the total
Federal awards expended for loan or loan guarantee programs in the schedule and (6) Include notes
that describe that significant accounting policies used in preparing the schedule and note whether
or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in §200.414
Indirect (F&A) costs.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule.
Internal controls over financial reporting should be designed to prevent, detect or correct errors in
a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the
Schedule is fairly presented. Controls have not been established by the City to ensure complete
and accurate reporting for the Schedule for the 2023 fiscal year.
Effect:
The determination of which major programs will be audited is affected by the accuracy of the
Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate
reporting of the City’s financial information could occur and the City cannot provide reasonable
assurance that the SEFA is fairly presented. As a result, individual program reports throughout the
year could have inaccurate information. There were also significant delays in the preparation of
the Schedule of Expenditures of Federal awards, which prevented the City from meeting the March
31, 2024 deadline with the Federal clearinghouse.
Questioned Costs:
Unknown.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.
Significant Deficiency in Internal Controls and Noncompliance over Reporting
Repeat Finding: Yes; 2022-007
Condition:
The City's audited financial statements and the data collection form were not completed within
nine months after the end of the audit period.
Criteria:
In accordance with 2 CFR § 200.512, the audit must be completed, and the data collection form
must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or
nine months after the end of the audit period.
Cause:
The City does not maintain a centralized grant accounting function or standardized policies and
procedures, including requirements to periodically submit and reconcile expenditures; instead,
each department maintains its own grant information. The lack of submission of grant documents
and accurate information by the various agencies and departments to Finance weakens internal
controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule
timely.
Effect:
The City was not in compliance with Uniform Guidance.
Questioned Costs:
None.
Recommendation:
We recommend that Finance establish policies and procedures to ensure that the Federal funds are
properly identified and reported accurately in the Schedule in accordance with Uniform Guidance
requirements. We also recommend that individuals responsible for administering Federal
assistance programs with the City receive training in grant administration.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in Part
V of this report.
Auditor’s Conclusion:
Finding remains as stated.