Audit 34705

FY End
2022-12-31
Total Expended
$11.49M
Findings
2
Programs
16
Organization: City of Springfield (OH)
Year: 2022 Accepted: 2023-09-25

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
38829 2022-001 Material Weakness - L
615271 2022-001 Material Weakness - L

Contacts

Name Title Type
MK8NL671BN39 Katie Eviston Auditee
9373247619 Larry Weeks Auditor
No contacts on file

Notes to SEFA

Title: ECONOMIC ADJUSTMENT ASSISTANCE PROGRAM (EDA) Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Springfield (the City) under programs of the federal government for the year ended December 31, 2022. The information on this Schedule is prepared in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City. Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in OMB Circular A-87 Cost Principles for State, Local, and Indian Tribal Governments (codified in 2 CFR Part 225), or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The City has an EDA revolving loan fund (RLF) under the Economic Adjustment Assistance Program, ALN 11.307. According to the OMB Compliance Supplement, for purposes of completing the Schedule, each EDA RLF (ALN 11.307) should be shown as a separate line item calculated as follows: 1. Balance of RLF loans outstanding at the end of the recipients fiscal year, plus; 2. Cash and investment balances in the RLF at the end of the recipients fiscal year, plus; 3. Administrative expenses paid out of the RLF income during the recipients fiscal year, plus; 4. The unpaid principal of all loans written off during the recipients fiscal year; and then multiply this sum (1+2+3+4) by; 5. The Federal share of the RLF. The Federal share is defined as the Federal participation rate (or the Federal grant rate) as specified in the grant award. The calculation to arrive at the RLF amount shown on the Schedule as of December 31, 2022 is as follows: RLF Loans Outstanding: $581,195, RLF Cash/Investment Balance: $206,802, Administrative Expenses 2022: $3,802, Unpaid Principal Written Off 2022: $0, Total: $791,799, Federal Share: 73.16%, RLF Federal Expenditures: $579,280.EDA released its federal interest effective April 27, 2022.The City also has a COVID-19 EDA RLF under the Economic Adjustment Assistance Program, ALN 11.307. The calculation to arrive at the COVID-19 RLF amount shown on the Schedule as of December 31, 2022 is as follows: COVID-19 RLF Loans Outstanding: $683,477, COVID-19 RLF Cash/Investment Balance: $87,644, Administrative Expenses 2022: $30,101, Unpaid Principal Written Off 2022: $0, Total: $801,222, Federal Share: 100.00%, RLF Federal Expenditures: $801,222.
Title: SUBRECIPIENT PAYMENTS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Springfield (the City) under programs of the federal government for the year ended December 31, 2022. The information on this Schedule is prepared in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City. Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in OMB Circular A-87 Cost Principles for State, Local, and Indian Tribal Governments (codified in 2 CFR Part 225), or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The City passes certain federal awards received from the U.S. Department of Housing and Urban Development and other federal agencies to other governments or not-for-profit agencies (subrecipients). As Note 2 describes, the City reports expenditures of Federal awards to subrecipients when paid in cash. As a subrecipient, the City has certain compliance responsibilities, such as monitoring its subrecipients to help assure they use these subawards as authorized by laws, regulations, and the provisions of contracts or grant agreements, and that subrecipients achieve the awards performance goals.
Title: MATCHING REQUIREMENTS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Springfield (the City) under programs of the federal government for the year ended December 31, 2022. The information on this Schedule is prepared in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City. Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in OMB Circular A-87 Cost Principles for State, Local, and Indian Tribal Governments (codified in 2 CFR Part 225), or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Certain Federal programs require the City to contribute non-Federal funds (matching funds) to support the Federally-funded programs. The City has met its matching requirements. The Schedule does not include the expenditure of non-Federal matching funds.

Finding Details

2022-001 ? Reporting ? Coronavirus State and Local Fiscal Recovery Funds ALN 21.027 U.S. Department of Treasury Criteria: The U.S. Department of Treasury established reporting requirements for local governments. These requirements established methods and timelines for reporting Coronavirus State and Local Fiscal Recovery Fund (SLFRF) expenditures to the U.S. Department of Treasury. Condition: The City completed the required reporting on the Treasury?s Portal for the SLFRF projects and expenditures for the first three quarters of 2022, however quarter two and three were not updated for new projects initiated during the respective periods and only included those projects reported in quarter one. Furthermore, the City did not complete the required program reporting for fourth quarter of 2022. Context: During our review of the quarterly project and expenditure reports, we were only able to agree quarter one of 2022 to the City?s accounting records. Quarter two and three reports contained only projects listed in quarter one report but did not include the additional projects allocated during the second and third quarter of 2022. The City did not complete the fourth quarter reporting as required. Effect: The City was not in compliance with reporting requirements in 2022. Cause: Lack of knowledge and sufficient internal controls over the reporting requirements of the SLFRF program. Recommendation: We recommend the City improve controls over reporting requirements associated with this program, including having individuals responsible for monitoring and reporting program activity obtain a better understanding of the reporting requirements of the Treasury reporting portal.
2022-001 ? Reporting ? Coronavirus State and Local Fiscal Recovery Funds ALN 21.027 U.S. Department of Treasury Criteria: The U.S. Department of Treasury established reporting requirements for local governments. These requirements established methods and timelines for reporting Coronavirus State and Local Fiscal Recovery Fund (SLFRF) expenditures to the U.S. Department of Treasury. Condition: The City completed the required reporting on the Treasury?s Portal for the SLFRF projects and expenditures for the first three quarters of 2022, however quarter two and three were not updated for new projects initiated during the respective periods and only included those projects reported in quarter one. Furthermore, the City did not complete the required program reporting for fourth quarter of 2022. Context: During our review of the quarterly project and expenditure reports, we were only able to agree quarter one of 2022 to the City?s accounting records. Quarter two and three reports contained only projects listed in quarter one report but did not include the additional projects allocated during the second and third quarter of 2022. The City did not complete the fourth quarter reporting as required. Effect: The City was not in compliance with reporting requirements in 2022. Cause: Lack of knowledge and sufficient internal controls over the reporting requirements of the SLFRF program. Recommendation: We recommend the City improve controls over reporting requirements associated with this program, including having individuals responsible for monitoring and reporting program activity obtain a better understanding of the reporting requirements of the Treasury reporting portal.