Finding 2024-008 – Reporting (Material Weakness)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting. 2 CFR 200.303 requires nonfederal entities to establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Typical control procedures related to reporting are to verify the filed report is supported by supporting documentation and inspecting filed report and supporting documentation, noting supervisory review of reports performed to assure accuracy and completeness of data and information included in the report.
Condition: We selected nine reports for the three grant programs tested to test for controls over reporting requirements. No documentation of review or approval of the reports was available.
Cause: The City did not retain documentation of a review and approval of federal reports submitted.
Effect: The City did not have appropriate controls in place over documentation of reporting requirements.
Questioned Costs: None reported.
Recommendation: We recommend the City strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-009 – Reporting (Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting that include timely and accurate reporting. Reporting requirements are unique to each awarding agency and criteria is based on the guidelines and regulations set forth by the funding agency. Each program required quarterly reports to be submitted.
Condition: We selected nine reports for the three grant programs tested to test for timely and accurate reporting requirements. The following exceptions were noted:
• Minority Health: Two Federal Financial Report (FFR) and two Federal Performance Report (FPR) reports tested; the two FFR reports were not submitted by the due date and one FFR report did not agree or reconcile to the accounting records
• CDBG: Two quarterly cash reports and the FY23 Consolidated Annual Performance and Evaluation Report (CAPER) tested; the two cash on hand reports did not have supporting documentation for the amounts reported or documentation that amounts were reconciled to the City's accounting system. One cash report was also filed late.
• CRF: Two project and expenditure reports tested; one was not submitted and the other was submitted late. Expenditure information for one subrecipient was underreported by $186,364.
Cause: Minority Health FFR reports were not submitted until February 2025, well past the due date. In addition, one FFR was not properly supported. CDBG project profit and loss statements did not tie to the numbers on the reports, the reports were submitted based on the IDIS reports from the HUD site and were not reconciled to the general ledger. CRF subaward amounts reported did not reconcile back to the general ledger. Various reports were filed after the due date.
Effect: The City did not submit timely and accurate reports in compliance with federal reporting requirements.
Questioned Costs: None reported.
Recommendation: The City should ensure responsible personnel have a clear understanding of the reporting guidance. The City should implement policies and procedures to monitor due dates and review all reports prepared by the grants department or its designee to ensure accurate and timely reporting.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-012 – Subrecipient Monitoring (Significant Deficiency and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG).
Criteria: 2 CFR 200.332 establishes subrecipient monitoring requirements of all pass through entities. These requirements include that every subaward is clearly identified to the subrecipient as a subaward and includes the following information: assistance listings title and number, the dollar amount made available under each federal award, and the assistance listings number at the time of disbursement, etc.
These requirements also include evaluating each subrecipient's fraud risk and risk of noncompliance with a subaward to determine the appropriate subrecipient monitoring. Evaluations of a subrecipient's risk should consider the following:
(1) The subrecipient's prior experience with the same or similar subawards;
(2) The results of previous audits;
(3) Whether the subrecipient has new personnel or new or substantially changed systems; and
(4) The extent and results of any federal agency monitoring.
In addition, subrecipient activities must be monitored to ensure compliance with federal statutes, regulations, and terms and conditions of the subaward. Monitoring must include the review of financial and performance reports, ensure that corrective action is taken by the subrecipient on any significant developments impacting the subaward, and resolving findings specifically related to the subaward.
The City has a grants manual in place that includes requirements of subrecipient and contract oversight. The policy includes processes to perform pre-award evaluations, post-award monitoring and closeout reporting to ensure compliance.
Condition: Minority Health – two subawards were tested for monitoring requirements. One of the subaward agreements did not include a required piece of information in the award document. CDBG - two subawards were tested for monitoring requirements. Pre-risk assessment procedures were not documented as performed prior to the subaward date on either subrecipient. In addition, one subrecipient had deficiencies noted in their annual audit. The City did not perform required monitoring duties to ensure the subrecipient took timely and appropriate action on the deficiencies reported.
Cause: Minority Health - the City did not communicate the federal assistance listing number in the subaward document. CDBG - did not document a pre-award risk assessment or follow up of corrective action for reported audit findings for their subrecipients.
Effect: The City did not have proper subrecipient monitoring documentation.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen procedures to ensure it complies with federal subrecipient monitoring requirements and its policies and procedures to perform all subrecipient oversight responsibilities to ensure compliance with federal subrecipient monitoring requirements.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-008 – Reporting (Material Weakness)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting. 2 CFR 200.303 requires nonfederal entities to establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Typical control procedures related to reporting are to verify the filed report is supported by supporting documentation and inspecting filed report and supporting documentation, noting supervisory review of reports performed to assure accuracy and completeness of data and information included in the report.
Condition: We selected nine reports for the three grant programs tested to test for controls over reporting requirements. No documentation of review or approval of the reports was available.
Cause: The City did not retain documentation of a review and approval of federal reports submitted.
Effect: The City did not have appropriate controls in place over documentation of reporting requirements.
Questioned Costs: None reported.
Recommendation: We recommend the City strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-009 – Reporting (Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting that include timely and accurate reporting. Reporting requirements are unique to each awarding agency and criteria is based on the guidelines and regulations set forth by the funding agency. Each program required quarterly reports to be submitted.
Condition: We selected nine reports for the three grant programs tested to test for timely and accurate reporting requirements. The following exceptions were noted:
• Minority Health: Two Federal Financial Report (FFR) and two Federal Performance Report (FPR) reports tested; the two FFR reports were not submitted by the due date and one FFR report did not agree or reconcile to the accounting records
• CDBG: Two quarterly cash reports and the FY23 Consolidated Annual Performance and Evaluation Report (CAPER) tested; the two cash on hand reports did not have supporting documentation for the amounts reported or documentation that amounts were reconciled to the City's accounting system. One cash report was also filed late.
• CRF: Two project and expenditure reports tested; one was not submitted and the other was submitted late. Expenditure information for one subrecipient was underreported by $186,364.
Cause: Minority Health FFR reports were not submitted until February 2025, well past the due date. In addition, one FFR was not properly supported. CDBG project profit and loss statements did not tie to the numbers on the reports, the reports were submitted based on the IDIS reports from the HUD site and were not reconciled to the general ledger. CRF subaward amounts reported did not reconcile back to the general ledger. Various reports were filed after the due date.
Effect: The City did not submit timely and accurate reports in compliance with federal reporting requirements.
Questioned Costs: None reported.
Recommendation: The City should ensure responsible personnel have a clear understanding of the reporting guidance. The City should implement policies and procedures to monitor due dates and review all reports prepared by the grants department or its designee to ensure accurate and timely reporting.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-012 – Subrecipient Monitoring (Significant Deficiency and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG).
Criteria: 2 CFR 200.332 establishes subrecipient monitoring requirements of all pass through entities. These requirements include that every subaward is clearly identified to the subrecipient as a subaward and includes the following information: assistance listings title and number, the dollar amount made available under each federal award, and the assistance listings number at the time of disbursement, etc.
These requirements also include evaluating each subrecipient's fraud risk and risk of noncompliance with a subaward to determine the appropriate subrecipient monitoring. Evaluations of a subrecipient's risk should consider the following:
(1) The subrecipient's prior experience with the same or similar subawards;
(2) The results of previous audits;
(3) Whether the subrecipient has new personnel or new or substantially changed systems; and
(4) The extent and results of any federal agency monitoring.
In addition, subrecipient activities must be monitored to ensure compliance with federal statutes, regulations, and terms and conditions of the subaward. Monitoring must include the review of financial and performance reports, ensure that corrective action is taken by the subrecipient on any significant developments impacting the subaward, and resolving findings specifically related to the subaward.
The City has a grants manual in place that includes requirements of subrecipient and contract oversight. The policy includes processes to perform pre-award evaluations, post-award monitoring and closeout reporting to ensure compliance.
Condition: Minority Health – two subawards were tested for monitoring requirements. One of the subaward agreements did not include a required piece of information in the award document. CDBG - two subawards were tested for monitoring requirements. Pre-risk assessment procedures were not documented as performed prior to the subaward date on either subrecipient. In addition, one subrecipient had deficiencies noted in their annual audit. The City did not perform required monitoring duties to ensure the subrecipient took timely and appropriate action on the deficiencies reported.
Cause: Minority Health - the City did not communicate the federal assistance listing number in the subaward document. CDBG - did not document a pre-award risk assessment or follow up of corrective action for reported audit findings for their subrecipients.
Effect: The City did not have proper subrecipient monitoring documentation.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen procedures to ensure it complies with federal subrecipient monitoring requirements and its policies and procedures to perform all subrecipient oversight responsibilities to ensure compliance with federal subrecipient monitoring requirements.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-008 – Reporting (Material Weakness)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting. 2 CFR 200.303 requires nonfederal entities to establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Typical control procedures related to reporting are to verify the filed report is supported by supporting documentation and inspecting filed report and supporting documentation, noting supervisory review of reports performed to assure accuracy and completeness of data and information included in the report.
Condition: We selected nine reports for the three grant programs tested to test for controls over reporting requirements. No documentation of review or approval of the reports was available.
Cause: The City did not retain documentation of a review and approval of federal reports submitted.
Effect: The City did not have appropriate controls in place over documentation of reporting requirements.
Questioned Costs: None reported.
Recommendation: We recommend the City strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-009 – Reporting (Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting that include timely and accurate reporting. Reporting requirements are unique to each awarding agency and criteria is based on the guidelines and regulations set forth by the funding agency. Each program required quarterly reports to be submitted.
Condition: We selected nine reports for the three grant programs tested to test for timely and accurate reporting requirements. The following exceptions were noted:
• Minority Health: Two Federal Financial Report (FFR) and two Federal Performance Report (FPR) reports tested; the two FFR reports were not submitted by the due date and one FFR report did not agree or reconcile to the accounting records
• CDBG: Two quarterly cash reports and the FY23 Consolidated Annual Performance and Evaluation Report (CAPER) tested; the two cash on hand reports did not have supporting documentation for the amounts reported or documentation that amounts were reconciled to the City's accounting system. One cash report was also filed late.
• CRF: Two project and expenditure reports tested; one was not submitted and the other was submitted late. Expenditure information for one subrecipient was underreported by $186,364.
Cause: Minority Health FFR reports were not submitted until February 2025, well past the due date. In addition, one FFR was not properly supported. CDBG project profit and loss statements did not tie to the numbers on the reports, the reports were submitted based on the IDIS reports from the HUD site and were not reconciled to the general ledger. CRF subaward amounts reported did not reconcile back to the general ledger. Various reports were filed after the due date.
Effect: The City did not submit timely and accurate reports in compliance with federal reporting requirements.
Questioned Costs: None reported.
Recommendation: The City should ensure responsible personnel have a clear understanding of the reporting guidance. The City should implement policies and procedures to monitor due dates and review all reports prepared by the grants department or its designee to ensure accurate and timely reporting.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-012 – Subrecipient Monitoring (Significant Deficiency and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG).
Criteria: 2 CFR 200.332 establishes subrecipient monitoring requirements of all pass through entities. These requirements include that every subaward is clearly identified to the subrecipient as a subaward and includes the following information: assistance listings title and number, the dollar amount made available under each federal award, and the assistance listings number at the time of disbursement, etc.
These requirements also include evaluating each subrecipient's fraud risk and risk of noncompliance with a subaward to determine the appropriate subrecipient monitoring. Evaluations of a subrecipient's risk should consider the following:
(1) The subrecipient's prior experience with the same or similar subawards;
(2) The results of previous audits;
(3) Whether the subrecipient has new personnel or new or substantially changed systems; and
(4) The extent and results of any federal agency monitoring.
In addition, subrecipient activities must be monitored to ensure compliance with federal statutes, regulations, and terms and conditions of the subaward. Monitoring must include the review of financial and performance reports, ensure that corrective action is taken by the subrecipient on any significant developments impacting the subaward, and resolving findings specifically related to the subaward.
The City has a grants manual in place that includes requirements of subrecipient and contract oversight. The policy includes processes to perform pre-award evaluations, post-award monitoring and closeout reporting to ensure compliance.
Condition: Minority Health – two subawards were tested for monitoring requirements. One of the subaward agreements did not include a required piece of information in the award document. CDBG - two subawards were tested for monitoring requirements. Pre-risk assessment procedures were not documented as performed prior to the subaward date on either subrecipient. In addition, one subrecipient had deficiencies noted in their annual audit. The City did not perform required monitoring duties to ensure the subrecipient took timely and appropriate action on the deficiencies reported.
Cause: Minority Health - the City did not communicate the federal assistance listing number in the subaward document. CDBG - did not document a pre-award risk assessment or follow up of corrective action for reported audit findings for their subrecipients.
Effect: The City did not have proper subrecipient monitoring documentation.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen procedures to ensure it complies with federal subrecipient monitoring requirements and its policies and procedures to perform all subrecipient oversight responsibilities to ensure compliance with federal subrecipient monitoring requirements.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-008 – Reporting (Material Weakness)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting. 2 CFR 200.303 requires nonfederal entities to establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Typical control procedures related to reporting are to verify the filed report is supported by supporting documentation and inspecting filed report and supporting documentation, noting supervisory review of reports performed to assure accuracy and completeness of data and information included in the report.
Condition: We selected nine reports for the three grant programs tested to test for controls over reporting requirements. No documentation of review or approval of the reports was available.
Cause: The City did not retain documentation of a review and approval of federal reports submitted.
Effect: The City did not have appropriate controls in place over documentation of reporting requirements.
Questioned Costs: None reported.
Recommendation: We recommend the City strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-009 – Reporting (Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting that include timely and accurate reporting. Reporting requirements are unique to each awarding agency and criteria is based on the guidelines and regulations set forth by the funding agency. Each program required quarterly reports to be submitted.
Condition: We selected nine reports for the three grant programs tested to test for timely and accurate reporting requirements. The following exceptions were noted:
• Minority Health: Two Federal Financial Report (FFR) and two Federal Performance Report (FPR) reports tested; the two FFR reports were not submitted by the due date and one FFR report did not agree or reconcile to the accounting records
• CDBG: Two quarterly cash reports and the FY23 Consolidated Annual Performance and Evaluation Report (CAPER) tested; the two cash on hand reports did not have supporting documentation for the amounts reported or documentation that amounts were reconciled to the City's accounting system. One cash report was also filed late.
• CRF: Two project and expenditure reports tested; one was not submitted and the other was submitted late. Expenditure information for one subrecipient was underreported by $186,364.
Cause: Minority Health FFR reports were not submitted until February 2025, well past the due date. In addition, one FFR was not properly supported. CDBG project profit and loss statements did not tie to the numbers on the reports, the reports were submitted based on the IDIS reports from the HUD site and were not reconciled to the general ledger. CRF subaward amounts reported did not reconcile back to the general ledger. Various reports were filed after the due date.
Effect: The City did not submit timely and accurate reports in compliance with federal reporting requirements.
Questioned Costs: None reported.
Recommendation: The City should ensure responsible personnel have a clear understanding of the reporting guidance. The City should implement policies and procedures to monitor due dates and review all reports prepared by the grants department or its designee to ensure accurate and timely reporting.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-012 – Subrecipient Monitoring (Significant Deficiency and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG).
Criteria: 2 CFR 200.332 establishes subrecipient monitoring requirements of all pass through entities. These requirements include that every subaward is clearly identified to the subrecipient as a subaward and includes the following information: assistance listings title and number, the dollar amount made available under each federal award, and the assistance listings number at the time of disbursement, etc.
These requirements also include evaluating each subrecipient's fraud risk and risk of noncompliance with a subaward to determine the appropriate subrecipient monitoring. Evaluations of a subrecipient's risk should consider the following:
(1) The subrecipient's prior experience with the same or similar subawards;
(2) The results of previous audits;
(3) Whether the subrecipient has new personnel or new or substantially changed systems; and
(4) The extent and results of any federal agency monitoring.
In addition, subrecipient activities must be monitored to ensure compliance with federal statutes, regulations, and terms and conditions of the subaward. Monitoring must include the review of financial and performance reports, ensure that corrective action is taken by the subrecipient on any significant developments impacting the subaward, and resolving findings specifically related to the subaward.
The City has a grants manual in place that includes requirements of subrecipient and contract oversight. The policy includes processes to perform pre-award evaluations, post-award monitoring and closeout reporting to ensure compliance.
Condition: Minority Health – two subawards were tested for monitoring requirements. One of the subaward agreements did not include a required piece of information in the award document. CDBG - two subawards were tested for monitoring requirements. Pre-risk assessment procedures were not documented as performed prior to the subaward date on either subrecipient. In addition, one subrecipient had deficiencies noted in their annual audit. The City did not perform required monitoring duties to ensure the subrecipient took timely and appropriate action on the deficiencies reported.
Cause: Minority Health - the City did not communicate the federal assistance listing number in the subaward document. CDBG - did not document a pre-award risk assessment or follow up of corrective action for reported audit findings for their subrecipients.
Effect: The City did not have proper subrecipient monitoring documentation.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen procedures to ensure it complies with federal subrecipient monitoring requirements and its policies and procedures to perform all subrecipient oversight responsibilities to ensure compliance with federal subrecipient monitoring requirements.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-008 – Reporting (Material Weakness)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting. 2 CFR 200.303 requires nonfederal entities to establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Typical control procedures related to reporting are to verify the filed report is supported by supporting documentation and inspecting filed report and supporting documentation, noting supervisory review of reports performed to assure accuracy and completeness of data and information included in the report.
Condition: We selected nine reports for the three grant programs tested to test for controls over reporting requirements. No documentation of review or approval of the reports was available.
Cause: The City did not retain documentation of a review and approval of federal reports submitted.
Effect: The City did not have appropriate controls in place over documentation of reporting requirements.
Questioned Costs: None reported.
Recommendation: We recommend the City strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-009 – Reporting (Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting that include timely and accurate reporting. Reporting requirements are unique to each awarding agency and criteria is based on the guidelines and regulations set forth by the funding agency. Each program required quarterly reports to be submitted.
Condition: We selected nine reports for the three grant programs tested to test for timely and accurate reporting requirements. The following exceptions were noted:
• Minority Health: Two Federal Financial Report (FFR) and two Federal Performance Report (FPR) reports tested; the two FFR reports were not submitted by the due date and one FFR report did not agree or reconcile to the accounting records
• CDBG: Two quarterly cash reports and the FY23 Consolidated Annual Performance and Evaluation Report (CAPER) tested; the two cash on hand reports did not have supporting documentation for the amounts reported or documentation that amounts were reconciled to the City's accounting system. One cash report was also filed late.
• CRF: Two project and expenditure reports tested; one was not submitted and the other was submitted late. Expenditure information for one subrecipient was underreported by $186,364.
Cause: Minority Health FFR reports were not submitted until February 2025, well past the due date. In addition, one FFR was not properly supported. CDBG project profit and loss statements did not tie to the numbers on the reports, the reports were submitted based on the IDIS reports from the HUD site and were not reconciled to the general ledger. CRF subaward amounts reported did not reconcile back to the general ledger. Various reports were filed after the due date.
Effect: The City did not submit timely and accurate reports in compliance with federal reporting requirements.
Questioned Costs: None reported.
Recommendation: The City should ensure responsible personnel have a clear understanding of the reporting guidance. The City should implement policies and procedures to monitor due dates and review all reports prepared by the grants department or its designee to ensure accurate and timely reporting.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-012 – Subrecipient Monitoring (Significant Deficiency and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG).
Criteria: 2 CFR 200.332 establishes subrecipient monitoring requirements of all pass through entities. These requirements include that every subaward is clearly identified to the subrecipient as a subaward and includes the following information: assistance listings title and number, the dollar amount made available under each federal award, and the assistance listings number at the time of disbursement, etc.
These requirements also include evaluating each subrecipient's fraud risk and risk of noncompliance with a subaward to determine the appropriate subrecipient monitoring. Evaluations of a subrecipient's risk should consider the following:
(1) The subrecipient's prior experience with the same or similar subawards;
(2) The results of previous audits;
(3) Whether the subrecipient has new personnel or new or substantially changed systems; and
(4) The extent and results of any federal agency monitoring.
In addition, subrecipient activities must be monitored to ensure compliance with federal statutes, regulations, and terms and conditions of the subaward. Monitoring must include the review of financial and performance reports, ensure that corrective action is taken by the subrecipient on any significant developments impacting the subaward, and resolving findings specifically related to the subaward.
The City has a grants manual in place that includes requirements of subrecipient and contract oversight. The policy includes processes to perform pre-award evaluations, post-award monitoring and closeout reporting to ensure compliance.
Condition: Minority Health – two subawards were tested for monitoring requirements. One of the subaward agreements did not include a required piece of information in the award document. CDBG - two subawards were tested for monitoring requirements. Pre-risk assessment procedures were not documented as performed prior to the subaward date on either subrecipient. In addition, one subrecipient had deficiencies noted in their annual audit. The City did not perform required monitoring duties to ensure the subrecipient took timely and appropriate action on the deficiencies reported.
Cause: Minority Health - the City did not communicate the federal assistance listing number in the subaward document. CDBG - did not document a pre-award risk assessment or follow up of corrective action for reported audit findings for their subrecipients.
Effect: The City did not have proper subrecipient monitoring documentation.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen procedures to ensure it complies with federal subrecipient monitoring requirements and its policies and procedures to perform all subrecipient oversight responsibilities to ensure compliance with federal subrecipient monitoring requirements.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-011 – Allowable Costs (Material Weakness and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); HOME Investment Partnerships Program, ALN 14.239, Department of Housing and Urban Development (HOME).
Criteria: 2 CFR Part 200 Subpart E establishes cost principles to apply in determining costs under federal awards. Nonfederal entities are also required to establish controls over the disbursement process to ensure compliance with allowable cost requirements. According to the City's approved fiscal policies and procedures, all purchase orders, blanket purchase agreements and special purchase authorizations require review and approval by the Finance Director or Deputy Finance Director.
Condition: Minority Health - we selected a sample of 40 disbursements charged to the grant. Of the 40, 21 were not properly approved in accordance with the City’s fiscal policies and procedures. HOME - we selected a sample of seven non-payroll disbursements charged to the grant. Of those seven, two were not properly approved in accordance with the City’s fiscal policies and procedures.
Cause: Disbursements were not approved by the Finance Director or Deputy Finance Director as required by the City’s fiscal policies and procedures. The workflow rules set up in the system are not consistent with the required approval workflow.
Effect: The City did not obtain proper approvals according to the policy of established controls.
Questioned Costs: None reported.
Recommendation: We recommend the City should update the fiscal policies and procedures to incorporate and clearly define the control system of approvals.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-011 – Allowable Costs (Material Weakness and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); HOME Investment Partnerships Program, ALN 14.239, Department of Housing and Urban Development (HOME).
Criteria: 2 CFR Part 200 Subpart E establishes cost principles to apply in determining costs under federal awards. Nonfederal entities are also required to establish controls over the disbursement process to ensure compliance with allowable cost requirements. According to the City's approved fiscal policies and procedures, all purchase orders, blanket purchase agreements and special purchase authorizations require review and approval by the Finance Director or Deputy Finance Director.
Condition: Minority Health - we selected a sample of 40 disbursements charged to the grant. Of the 40, 21 were not properly approved in accordance with the City’s fiscal policies and procedures. HOME - we selected a sample of seven non-payroll disbursements charged to the grant. Of those seven, two were not properly approved in accordance with the City’s fiscal policies and procedures.
Cause: Disbursements were not approved by the Finance Director or Deputy Finance Director as required by the City’s fiscal policies and procedures. The workflow rules set up in the system are not consistent with the required approval workflow.
Effect: The City did not obtain proper approvals according to the policy of established controls.
Questioned Costs: None reported.
Recommendation: We recommend the City should update the fiscal policies and procedures to incorporate and clearly define the control system of approvals.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-011 – Allowable Costs (Material Weakness and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); HOME Investment Partnerships Program, ALN 14.239, Department of Housing and Urban Development (HOME).
Criteria: 2 CFR Part 200 Subpart E establishes cost principles to apply in determining costs under federal awards. Nonfederal entities are also required to establish controls over the disbursement process to ensure compliance with allowable cost requirements. According to the City's approved fiscal policies and procedures, all purchase orders, blanket purchase agreements and special purchase authorizations require review and approval by the Finance Director or Deputy Finance Director.
Condition: Minority Health - we selected a sample of 40 disbursements charged to the grant. Of the 40, 21 were not properly approved in accordance with the City’s fiscal policies and procedures. HOME - we selected a sample of seven non-payroll disbursements charged to the grant. Of those seven, two were not properly approved in accordance with the City’s fiscal policies and procedures.
Cause: Disbursements were not approved by the Finance Director or Deputy Finance Director as required by the City’s fiscal policies and procedures. The workflow rules set up in the system are not consistent with the required approval workflow.
Effect: The City did not obtain proper approvals according to the policy of established controls.
Questioned Costs: None reported.
Recommendation: We recommend the City should update the fiscal policies and procedures to incorporate and clearly define the control system of approvals.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-011 – Allowable Costs (Material Weakness and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); HOME Investment Partnerships Program, ALN 14.239, Department of Housing and Urban Development (HOME).
Criteria: 2 CFR Part 200 Subpart E establishes cost principles to apply in determining costs under federal awards. Nonfederal entities are also required to establish controls over the disbursement process to ensure compliance with allowable cost requirements. According to the City's approved fiscal policies and procedures, all purchase orders, blanket purchase agreements and special purchase authorizations require review and approval by the Finance Director or Deputy Finance Director.
Condition: Minority Health - we selected a sample of 40 disbursements charged to the grant. Of the 40, 21 were not properly approved in accordance with the City’s fiscal policies and procedures. HOME - we selected a sample of seven non-payroll disbursements charged to the grant. Of those seven, two were not properly approved in accordance with the City’s fiscal policies and procedures.
Cause: Disbursements were not approved by the Finance Director or Deputy Finance Director as required by the City’s fiscal policies and procedures. The workflow rules set up in the system are not consistent with the required approval workflow.
Effect: The City did not obtain proper approvals according to the policy of established controls.
Questioned Costs: None reported.
Recommendation: We recommend the City should update the fiscal policies and procedures to incorporate and clearly define the control system of approvals.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-011 – Allowable Costs (Material Weakness and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); HOME Investment Partnerships Program, ALN 14.239, Department of Housing and Urban Development (HOME).
Criteria: 2 CFR Part 200 Subpart E establishes cost principles to apply in determining costs under federal awards. Nonfederal entities are also required to establish controls over the disbursement process to ensure compliance with allowable cost requirements. According to the City's approved fiscal policies and procedures, all purchase orders, blanket purchase agreements and special purchase authorizations require review and approval by the Finance Director or Deputy Finance Director.
Condition: Minority Health - we selected a sample of 40 disbursements charged to the grant. Of the 40, 21 were not properly approved in accordance with the City’s fiscal policies and procedures. HOME - we selected a sample of seven non-payroll disbursements charged to the grant. Of those seven, two were not properly approved in accordance with the City’s fiscal policies and procedures.
Cause: Disbursements were not approved by the Finance Director or Deputy Finance Director as required by the City’s fiscal policies and procedures. The workflow rules set up in the system are not consistent with the required approval workflow.
Effect: The City did not obtain proper approvals according to the policy of established controls.
Questioned Costs: None reported.
Recommendation: We recommend the City should update the fiscal policies and procedures to incorporate and clearly define the control system of approvals.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-011 – Allowable Costs (Material Weakness and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); HOME Investment Partnerships Program, ALN 14.239, Department of Housing and Urban Development (HOME).
Criteria: 2 CFR Part 200 Subpart E establishes cost principles to apply in determining costs under federal awards. Nonfederal entities are also required to establish controls over the disbursement process to ensure compliance with allowable cost requirements. According to the City's approved fiscal policies and procedures, all purchase orders, blanket purchase agreements and special purchase authorizations require review and approval by the Finance Director or Deputy Finance Director.
Condition: Minority Health - we selected a sample of 40 disbursements charged to the grant. Of the 40, 21 were not properly approved in accordance with the City’s fiscal policies and procedures. HOME - we selected a sample of seven non-payroll disbursements charged to the grant. Of those seven, two were not properly approved in accordance with the City’s fiscal policies and procedures.
Cause: Disbursements were not approved by the Finance Director or Deputy Finance Director as required by the City’s fiscal policies and procedures. The workflow rules set up in the system are not consistent with the required approval workflow.
Effect: The City did not obtain proper approvals according to the policy of established controls.
Questioned Costs: None reported.
Recommendation: We recommend the City should update the fiscal policies and procedures to incorporate and clearly define the control system of approvals.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-008 – Reporting (Material Weakness)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting. 2 CFR 200.303 requires nonfederal entities to establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Typical control procedures related to reporting are to verify the filed report is supported by supporting documentation and inspecting filed report and supporting documentation, noting supervisory review of reports performed to assure accuracy and completeness of data and information included in the report.
Condition: We selected nine reports for the three grant programs tested to test for controls over reporting requirements. No documentation of review or approval of the reports was available.
Cause: The City did not retain documentation of a review and approval of federal reports submitted.
Effect: The City did not have appropriate controls in place over documentation of reporting requirements.
Questioned Costs: None reported.
Recommendation: We recommend the City strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-009 – Reporting (Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting that include timely and accurate reporting. Reporting requirements are unique to each awarding agency and criteria is based on the guidelines and regulations set forth by the funding agency. Each program required quarterly reports to be submitted.
Condition: We selected nine reports for the three grant programs tested to test for timely and accurate reporting requirements. The following exceptions were noted:
• Minority Health: Two Federal Financial Report (FFR) and two Federal Performance Report (FPR) reports tested; the two FFR reports were not submitted by the due date and one FFR report did not agree or reconcile to the accounting records
• CDBG: Two quarterly cash reports and the FY23 Consolidated Annual Performance and Evaluation Report (CAPER) tested; the two cash on hand reports did not have supporting documentation for the amounts reported or documentation that amounts were reconciled to the City's accounting system. One cash report was also filed late.
• CRF: Two project and expenditure reports tested; one was not submitted and the other was submitted late. Expenditure information for one subrecipient was underreported by $186,364.
Cause: Minority Health FFR reports were not submitted until February 2025, well past the due date. In addition, one FFR was not properly supported. CDBG project profit and loss statements did not tie to the numbers on the reports, the reports were submitted based on the IDIS reports from the HUD site and were not reconciled to the general ledger. CRF subaward amounts reported did not reconcile back to the general ledger. Various reports were filed after the due date.
Effect: The City did not submit timely and accurate reports in compliance with federal reporting requirements.
Questioned Costs: None reported.
Recommendation: The City should ensure responsible personnel have a clear understanding of the reporting guidance. The City should implement policies and procedures to monitor due dates and review all reports prepared by the grants department or its designee to ensure accurate and timely reporting.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-010 – Procurement (Material Weakness and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.317-327 establishes procurement standards for nonfederal entities. This includes different requirements based on the amount of purchases made from the vendor during the year. Specifically, the recipient or subrecipient must maintain and use documented procedures for procurement transactions under a federal award or subaward, including for acquisition of property or services. Per the City’s Fiscal Policy and Procedures Manual, the simplified acquisition method has a lower threshold of $15,000. All contracts and purchases over $15,000 must be bid.
Condition: We selected eight vendors for procurement testing. Of those eight, it was noted that for five vendors the City did not document the appropriate procurement procedures took place.
Cause: Minority Health - the City contracted or accumulated costs for four vendors over the simplified acquisition threshold and did not provide documentation of bid procedures. CRF - the City contracted one vendor over the simplified acquisition threshold and did not provide documentation of bid procedures.
Effect: The City did not have appropriate documentation to support compliance with the procurement policy.
Questioned Costs: Minority Health - $433,369; CRF - $22,813
Recommendation: We recommend the City reinforce its procurement policies through regular training and clear communication to all relevant staff members. Additionally, implementing a periodic review process to ensure compliance with this policy can help prevent future occurrences.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-008 – Reporting (Material Weakness)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting. 2 CFR 200.303 requires nonfederal entities to establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Typical control procedures related to reporting are to verify the filed report is supported by supporting documentation and inspecting filed report and supporting documentation, noting supervisory review of reports performed to assure accuracy and completeness of data and information included in the report.
Condition: We selected nine reports for the three grant programs tested to test for controls over reporting requirements. No documentation of review or approval of the reports was available.
Cause: The City did not retain documentation of a review and approval of federal reports submitted.
Effect: The City did not have appropriate controls in place over documentation of reporting requirements.
Questioned Costs: None reported.
Recommendation: We recommend the City strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-009 – Reporting (Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting that include timely and accurate reporting. Reporting requirements are unique to each awarding agency and criteria is based on the guidelines and regulations set forth by the funding agency. Each program required quarterly reports to be submitted.
Condition: We selected nine reports for the three grant programs tested to test for timely and accurate reporting requirements. The following exceptions were noted:
• Minority Health: Two Federal Financial Report (FFR) and two Federal Performance Report (FPR) reports tested; the two FFR reports were not submitted by the due date and one FFR report did not agree or reconcile to the accounting records
• CDBG: Two quarterly cash reports and the FY23 Consolidated Annual Performance and Evaluation Report (CAPER) tested; the two cash on hand reports did not have supporting documentation for the amounts reported or documentation that amounts were reconciled to the City's accounting system. One cash report was also filed late.
• CRF: Two project and expenditure reports tested; one was not submitted and the other was submitted late. Expenditure information for one subrecipient was underreported by $186,364.
Cause: Minority Health FFR reports were not submitted until February 2025, well past the due date. In addition, one FFR was not properly supported. CDBG project profit and loss statements did not tie to the numbers on the reports, the reports were submitted based on the IDIS reports from the HUD site and were not reconciled to the general ledger. CRF subaward amounts reported did not reconcile back to the general ledger. Various reports were filed after the due date.
Effect: The City did not submit timely and accurate reports in compliance with federal reporting requirements.
Questioned Costs: None reported.
Recommendation: The City should ensure responsible personnel have a clear understanding of the reporting guidance. The City should implement policies and procedures to monitor due dates and review all reports prepared by the grants department or its designee to ensure accurate and timely reporting.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-010 – Procurement (Material Weakness and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.317-327 establishes procurement standards for nonfederal entities. This includes different requirements based on the amount of purchases made from the vendor during the year. Specifically, the recipient or subrecipient must maintain and use documented procedures for procurement transactions under a federal award or subaward, including for acquisition of property or services. Per the City’s Fiscal Policy and Procedures Manual, the simplified acquisition method has a lower threshold of $15,000. All contracts and purchases over $15,000 must be bid.
Condition: We selected eight vendors for procurement testing. Of those eight, it was noted that for five vendors the City did not document the appropriate procurement procedures took place.
Cause: Minority Health - the City contracted or accumulated costs for four vendors over the simplified acquisition threshold and did not provide documentation of bid procedures. CRF - the City contracted one vendor over the simplified acquisition threshold and did not provide documentation of bid procedures.
Effect: The City did not have appropriate documentation to support compliance with the procurement policy.
Questioned Costs: Minority Health - $433,369; CRF - $22,813
Recommendation: We recommend the City reinforce its procurement policies through regular training and clear communication to all relevant staff members. Additionally, implementing a periodic review process to ensure compliance with this policy can help prevent future occurrences.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-011 – Allowable Costs (Material Weakness and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); HOME Investment Partnerships Program, ALN 14.239, Department of Housing and Urban Development (HOME).
Criteria: 2 CFR Part 200 Subpart E establishes cost principles to apply in determining costs under federal awards. Nonfederal entities are also required to establish controls over the disbursement process to ensure compliance with allowable cost requirements. According to the City's approved fiscal policies and procedures, all purchase orders, blanket purchase agreements and special purchase authorizations require review and approval by the Finance Director or Deputy Finance Director.
Condition: Minority Health - we selected a sample of 40 disbursements charged to the grant. Of the 40, 21 were not properly approved in accordance with the City’s fiscal policies and procedures. HOME - we selected a sample of seven non-payroll disbursements charged to the grant. Of those seven, two were not properly approved in accordance with the City’s fiscal policies and procedures.
Cause: Disbursements were not approved by the Finance Director or Deputy Finance Director as required by the City’s fiscal policies and procedures. The workflow rules set up in the system are not consistent with the required approval workflow.
Effect: The City did not obtain proper approvals according to the policy of established controls.
Questioned Costs: None reported.
Recommendation: We recommend the City should update the fiscal policies and procedures to incorporate and clearly define the control system of approvals.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-012 – Subrecipient Monitoring (Significant Deficiency and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG).
Criteria: 2 CFR 200.332 establishes subrecipient monitoring requirements of all pass through entities. These requirements include that every subaward is clearly identified to the subrecipient as a subaward and includes the following information: assistance listings title and number, the dollar amount made available under each federal award, and the assistance listings number at the time of disbursement, etc.
These requirements also include evaluating each subrecipient's fraud risk and risk of noncompliance with a subaward to determine the appropriate subrecipient monitoring. Evaluations of a subrecipient's risk should consider the following:
(1) The subrecipient's prior experience with the same or similar subawards;
(2) The results of previous audits;
(3) Whether the subrecipient has new personnel or new or substantially changed systems; and
(4) The extent and results of any federal agency monitoring.
In addition, subrecipient activities must be monitored to ensure compliance with federal statutes, regulations, and terms and conditions of the subaward. Monitoring must include the review of financial and performance reports, ensure that corrective action is taken by the subrecipient on any significant developments impacting the subaward, and resolving findings specifically related to the subaward.
The City has a grants manual in place that includes requirements of subrecipient and contract oversight. The policy includes processes to perform pre-award evaluations, post-award monitoring and closeout reporting to ensure compliance.
Condition: Minority Health – two subawards were tested for monitoring requirements. One of the subaward agreements did not include a required piece of information in the award document. CDBG - two subawards were tested for monitoring requirements. Pre-risk assessment procedures were not documented as performed prior to the subaward date on either subrecipient. In addition, one subrecipient had deficiencies noted in their annual audit. The City did not perform required monitoring duties to ensure the subrecipient took timely and appropriate action on the deficiencies reported.
Cause: Minority Health - the City did not communicate the federal assistance listing number in the subaward document. CDBG - did not document a pre-award risk assessment or follow up of corrective action for reported audit findings for their subrecipients.
Effect: The City did not have proper subrecipient monitoring documentation.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen procedures to ensure it complies with federal subrecipient monitoring requirements and its policies and procedures to perform all subrecipient oversight responsibilities to ensure compliance with federal subrecipient monitoring requirements.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-014 – Cash Management (Significant Deficiency and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health).
Criteria: 2 CFR 200.305 establishes methods of receiving payment from federal agencies. 2 CFR 200.303 established that recipients must establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). According to the City's approved fiscal policies and procedures, drawdown reports/reimbursement requests must be approved by the grants department and accounting manager or CFO.
Condition: The City drew the remaining balance on the Minority Health award during the year. Documentation of review and approval for the draw was not available.
Cause: The City is experiencing turnovers and staffing challenges which have led to some gaps in following procedures.
Effect: The City did not document proper controls in place over cash management.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen procedures to ensure it complies with its policies and procedures to ensure appropriate level of management is reviewing cash drawdown requests.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-008 – Reporting (Material Weakness)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting. 2 CFR 200.303 requires nonfederal entities to establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Typical control procedures related to reporting are to verify the filed report is supported by supporting documentation and inspecting filed report and supporting documentation, noting supervisory review of reports performed to assure accuracy and completeness of data and information included in the report.
Condition: We selected nine reports for the three grant programs tested to test for controls over reporting requirements. No documentation of review or approval of the reports was available.
Cause: The City did not retain documentation of a review and approval of federal reports submitted.
Effect: The City did not have appropriate controls in place over documentation of reporting requirements.
Questioned Costs: None reported.
Recommendation: We recommend the City strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-009 – Reporting (Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting that include timely and accurate reporting. Reporting requirements are unique to each awarding agency and criteria is based on the guidelines and regulations set forth by the funding agency. Each program required quarterly reports to be submitted.
Condition: We selected nine reports for the three grant programs tested to test for timely and accurate reporting requirements. The following exceptions were noted:
• Minority Health: Two Federal Financial Report (FFR) and two Federal Performance Report (FPR) reports tested; the two FFR reports were not submitted by the due date and one FFR report did not agree or reconcile to the accounting records
• CDBG: Two quarterly cash reports and the FY23 Consolidated Annual Performance and Evaluation Report (CAPER) tested; the two cash on hand reports did not have supporting documentation for the amounts reported or documentation that amounts were reconciled to the City's accounting system. One cash report was also filed late.
• CRF: Two project and expenditure reports tested; one was not submitted and the other was submitted late. Expenditure information for one subrecipient was underreported by $186,364.
Cause: Minority Health FFR reports were not submitted until February 2025, well past the due date. In addition, one FFR was not properly supported. CDBG project profit and loss statements did not tie to the numbers on the reports, the reports were submitted based on the IDIS reports from the HUD site and were not reconciled to the general ledger. CRF subaward amounts reported did not reconcile back to the general ledger. Various reports were filed after the due date.
Effect: The City did not submit timely and accurate reports in compliance with federal reporting requirements.
Questioned Costs: None reported.
Recommendation: The City should ensure responsible personnel have a clear understanding of the reporting guidance. The City should implement policies and procedures to monitor due dates and review all reports prepared by the grants department or its designee to ensure accurate and timely reporting.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-012 – Subrecipient Monitoring (Significant Deficiency and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG).
Criteria: 2 CFR 200.332 establishes subrecipient monitoring requirements of all pass through entities. These requirements include that every subaward is clearly identified to the subrecipient as a subaward and includes the following information: assistance listings title and number, the dollar amount made available under each federal award, and the assistance listings number at the time of disbursement, etc.
These requirements also include evaluating each subrecipient's fraud risk and risk of noncompliance with a subaward to determine the appropriate subrecipient monitoring. Evaluations of a subrecipient's risk should consider the following:
(1) The subrecipient's prior experience with the same or similar subawards;
(2) The results of previous audits;
(3) Whether the subrecipient has new personnel or new or substantially changed systems; and
(4) The extent and results of any federal agency monitoring.
In addition, subrecipient activities must be monitored to ensure compliance with federal statutes, regulations, and terms and conditions of the subaward. Monitoring must include the review of financial and performance reports, ensure that corrective action is taken by the subrecipient on any significant developments impacting the subaward, and resolving findings specifically related to the subaward.
The City has a grants manual in place that includes requirements of subrecipient and contract oversight. The policy includes processes to perform pre-award evaluations, post-award monitoring and closeout reporting to ensure compliance.
Condition: Minority Health – two subawards were tested for monitoring requirements. One of the subaward agreements did not include a required piece of information in the award document. CDBG - two subawards were tested for monitoring requirements. Pre-risk assessment procedures were not documented as performed prior to the subaward date on either subrecipient. In addition, one subrecipient had deficiencies noted in their annual audit. The City did not perform required monitoring duties to ensure the subrecipient took timely and appropriate action on the deficiencies reported.
Cause: Minority Health - the City did not communicate the federal assistance listing number in the subaward document. CDBG - did not document a pre-award risk assessment or follow up of corrective action for reported audit findings for their subrecipients.
Effect: The City did not have proper subrecipient monitoring documentation.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen procedures to ensure it complies with federal subrecipient monitoring requirements and its policies and procedures to perform all subrecipient oversight responsibilities to ensure compliance with federal subrecipient monitoring requirements.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-008 – Reporting (Material Weakness)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting. 2 CFR 200.303 requires nonfederal entities to establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Typical control procedures related to reporting are to verify the filed report is supported by supporting documentation and inspecting filed report and supporting documentation, noting supervisory review of reports performed to assure accuracy and completeness of data and information included in the report.
Condition: We selected nine reports for the three grant programs tested to test for controls over reporting requirements. No documentation of review or approval of the reports was available.
Cause: The City did not retain documentation of a review and approval of federal reports submitted.
Effect: The City did not have appropriate controls in place over documentation of reporting requirements.
Questioned Costs: None reported.
Recommendation: We recommend the City strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-009 – Reporting (Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting that include timely and accurate reporting. Reporting requirements are unique to each awarding agency and criteria is based on the guidelines and regulations set forth by the funding agency. Each program required quarterly reports to be submitted.
Condition: We selected nine reports for the three grant programs tested to test for timely and accurate reporting requirements. The following exceptions were noted:
• Minority Health: Two Federal Financial Report (FFR) and two Federal Performance Report (FPR) reports tested; the two FFR reports were not submitted by the due date and one FFR report did not agree or reconcile to the accounting records
• CDBG: Two quarterly cash reports and the FY23 Consolidated Annual Performance and Evaluation Report (CAPER) tested; the two cash on hand reports did not have supporting documentation for the amounts reported or documentation that amounts were reconciled to the City's accounting system. One cash report was also filed late.
• CRF: Two project and expenditure reports tested; one was not submitted and the other was submitted late. Expenditure information for one subrecipient was underreported by $186,364.
Cause: Minority Health FFR reports were not submitted until February 2025, well past the due date. In addition, one FFR was not properly supported. CDBG project profit and loss statements did not tie to the numbers on the reports, the reports were submitted based on the IDIS reports from the HUD site and were not reconciled to the general ledger. CRF subaward amounts reported did not reconcile back to the general ledger. Various reports were filed after the due date.
Effect: The City did not submit timely and accurate reports in compliance with federal reporting requirements.
Questioned Costs: None reported.
Recommendation: The City should ensure responsible personnel have a clear understanding of the reporting guidance. The City should implement policies and procedures to monitor due dates and review all reports prepared by the grants department or its designee to ensure accurate and timely reporting.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-012 – Subrecipient Monitoring (Significant Deficiency and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG).
Criteria: 2 CFR 200.332 establishes subrecipient monitoring requirements of all pass through entities. These requirements include that every subaward is clearly identified to the subrecipient as a subaward and includes the following information: assistance listings title and number, the dollar amount made available under each federal award, and the assistance listings number at the time of disbursement, etc.
These requirements also include evaluating each subrecipient's fraud risk and risk of noncompliance with a subaward to determine the appropriate subrecipient monitoring. Evaluations of a subrecipient's risk should consider the following:
(1) The subrecipient's prior experience with the same or similar subawards;
(2) The results of previous audits;
(3) Whether the subrecipient has new personnel or new or substantially changed systems; and
(4) The extent and results of any federal agency monitoring.
In addition, subrecipient activities must be monitored to ensure compliance with federal statutes, regulations, and terms and conditions of the subaward. Monitoring must include the review of financial and performance reports, ensure that corrective action is taken by the subrecipient on any significant developments impacting the subaward, and resolving findings specifically related to the subaward.
The City has a grants manual in place that includes requirements of subrecipient and contract oversight. The policy includes processes to perform pre-award evaluations, post-award monitoring and closeout reporting to ensure compliance.
Condition: Minority Health – two subawards were tested for monitoring requirements. One of the subaward agreements did not include a required piece of information in the award document. CDBG - two subawards were tested for monitoring requirements. Pre-risk assessment procedures were not documented as performed prior to the subaward date on either subrecipient. In addition, one subrecipient had deficiencies noted in their annual audit. The City did not perform required monitoring duties to ensure the subrecipient took timely and appropriate action on the deficiencies reported.
Cause: Minority Health - the City did not communicate the federal assistance listing number in the subaward document. CDBG - did not document a pre-award risk assessment or follow up of corrective action for reported audit findings for their subrecipients.
Effect: The City did not have proper subrecipient monitoring documentation.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen procedures to ensure it complies with federal subrecipient monitoring requirements and its policies and procedures to perform all subrecipient oversight responsibilities to ensure compliance with federal subrecipient monitoring requirements.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-008 – Reporting (Material Weakness)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting. 2 CFR 200.303 requires nonfederal entities to establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Typical control procedures related to reporting are to verify the filed report is supported by supporting documentation and inspecting filed report and supporting documentation, noting supervisory review of reports performed to assure accuracy and completeness of data and information included in the report.
Condition: We selected nine reports for the three grant programs tested to test for controls over reporting requirements. No documentation of review or approval of the reports was available.
Cause: The City did not retain documentation of a review and approval of federal reports submitted.
Effect: The City did not have appropriate controls in place over documentation of reporting requirements.
Questioned Costs: None reported.
Recommendation: We recommend the City strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-009 – Reporting (Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting that include timely and accurate reporting. Reporting requirements are unique to each awarding agency and criteria is based on the guidelines and regulations set forth by the funding agency. Each program required quarterly reports to be submitted.
Condition: We selected nine reports for the three grant programs tested to test for timely and accurate reporting requirements. The following exceptions were noted:
• Minority Health: Two Federal Financial Report (FFR) and two Federal Performance Report (FPR) reports tested; the two FFR reports were not submitted by the due date and one FFR report did not agree or reconcile to the accounting records
• CDBG: Two quarterly cash reports and the FY23 Consolidated Annual Performance and Evaluation Report (CAPER) tested; the two cash on hand reports did not have supporting documentation for the amounts reported or documentation that amounts were reconciled to the City's accounting system. One cash report was also filed late.
• CRF: Two project and expenditure reports tested; one was not submitted and the other was submitted late. Expenditure information for one subrecipient was underreported by $186,364.
Cause: Minority Health FFR reports were not submitted until February 2025, well past the due date. In addition, one FFR was not properly supported. CDBG project profit and loss statements did not tie to the numbers on the reports, the reports were submitted based on the IDIS reports from the HUD site and were not reconciled to the general ledger. CRF subaward amounts reported did not reconcile back to the general ledger. Various reports were filed after the due date.
Effect: The City did not submit timely and accurate reports in compliance with federal reporting requirements.
Questioned Costs: None reported.
Recommendation: The City should ensure responsible personnel have a clear understanding of the reporting guidance. The City should implement policies and procedures to monitor due dates and review all reports prepared by the grants department or its designee to ensure accurate and timely reporting.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-012 – Subrecipient Monitoring (Significant Deficiency and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG).
Criteria: 2 CFR 200.332 establishes subrecipient monitoring requirements of all pass through entities. These requirements include that every subaward is clearly identified to the subrecipient as a subaward and includes the following information: assistance listings title and number, the dollar amount made available under each federal award, and the assistance listings number at the time of disbursement, etc.
These requirements also include evaluating each subrecipient's fraud risk and risk of noncompliance with a subaward to determine the appropriate subrecipient monitoring. Evaluations of a subrecipient's risk should consider the following:
(1) The subrecipient's prior experience with the same or similar subawards;
(2) The results of previous audits;
(3) Whether the subrecipient has new personnel or new or substantially changed systems; and
(4) The extent and results of any federal agency monitoring.
In addition, subrecipient activities must be monitored to ensure compliance with federal statutes, regulations, and terms and conditions of the subaward. Monitoring must include the review of financial and performance reports, ensure that corrective action is taken by the subrecipient on any significant developments impacting the subaward, and resolving findings specifically related to the subaward.
The City has a grants manual in place that includes requirements of subrecipient and contract oversight. The policy includes processes to perform pre-award evaluations, post-award monitoring and closeout reporting to ensure compliance.
Condition: Minority Health – two subawards were tested for monitoring requirements. One of the subaward agreements did not include a required piece of information in the award document. CDBG - two subawards were tested for monitoring requirements. Pre-risk assessment procedures were not documented as performed prior to the subaward date on either subrecipient. In addition, one subrecipient had deficiencies noted in their annual audit. The City did not perform required monitoring duties to ensure the subrecipient took timely and appropriate action on the deficiencies reported.
Cause: Minority Health - the City did not communicate the federal assistance listing number in the subaward document. CDBG - did not document a pre-award risk assessment or follow up of corrective action for reported audit findings for their subrecipients.
Effect: The City did not have proper subrecipient monitoring documentation.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen procedures to ensure it complies with federal subrecipient monitoring requirements and its policies and procedures to perform all subrecipient oversight responsibilities to ensure compliance with federal subrecipient monitoring requirements.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-008 – Reporting (Material Weakness)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting. 2 CFR 200.303 requires nonfederal entities to establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Typical control procedures related to reporting are to verify the filed report is supported by supporting documentation and inspecting filed report and supporting documentation, noting supervisory review of reports performed to assure accuracy and completeness of data and information included in the report.
Condition: We selected nine reports for the three grant programs tested to test for controls over reporting requirements. No documentation of review or approval of the reports was available.
Cause: The City did not retain documentation of a review and approval of federal reports submitted.
Effect: The City did not have appropriate controls in place over documentation of reporting requirements.
Questioned Costs: None reported.
Recommendation: We recommend the City strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-009 – Reporting (Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting that include timely and accurate reporting. Reporting requirements are unique to each awarding agency and criteria is based on the guidelines and regulations set forth by the funding agency. Each program required quarterly reports to be submitted.
Condition: We selected nine reports for the three grant programs tested to test for timely and accurate reporting requirements. The following exceptions were noted:
• Minority Health: Two Federal Financial Report (FFR) and two Federal Performance Report (FPR) reports tested; the two FFR reports were not submitted by the due date and one FFR report did not agree or reconcile to the accounting records
• CDBG: Two quarterly cash reports and the FY23 Consolidated Annual Performance and Evaluation Report (CAPER) tested; the two cash on hand reports did not have supporting documentation for the amounts reported or documentation that amounts were reconciled to the City's accounting system. One cash report was also filed late.
• CRF: Two project and expenditure reports tested; one was not submitted and the other was submitted late. Expenditure information for one subrecipient was underreported by $186,364.
Cause: Minority Health FFR reports were not submitted until February 2025, well past the due date. In addition, one FFR was not properly supported. CDBG project profit and loss statements did not tie to the numbers on the reports, the reports were submitted based on the IDIS reports from the HUD site and were not reconciled to the general ledger. CRF subaward amounts reported did not reconcile back to the general ledger. Various reports were filed after the due date.
Effect: The City did not submit timely and accurate reports in compliance with federal reporting requirements.
Questioned Costs: None reported.
Recommendation: The City should ensure responsible personnel have a clear understanding of the reporting guidance. The City should implement policies and procedures to monitor due dates and review all reports prepared by the grants department or its designee to ensure accurate and timely reporting.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-012 – Subrecipient Monitoring (Significant Deficiency and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG).
Criteria: 2 CFR 200.332 establishes subrecipient monitoring requirements of all pass through entities. These requirements include that every subaward is clearly identified to the subrecipient as a subaward and includes the following information: assistance listings title and number, the dollar amount made available under each federal award, and the assistance listings number at the time of disbursement, etc.
These requirements also include evaluating each subrecipient's fraud risk and risk of noncompliance with a subaward to determine the appropriate subrecipient monitoring. Evaluations of a subrecipient's risk should consider the following:
(1) The subrecipient's prior experience with the same or similar subawards;
(2) The results of previous audits;
(3) Whether the subrecipient has new personnel or new or substantially changed systems; and
(4) The extent and results of any federal agency monitoring.
In addition, subrecipient activities must be monitored to ensure compliance with federal statutes, regulations, and terms and conditions of the subaward. Monitoring must include the review of financial and performance reports, ensure that corrective action is taken by the subrecipient on any significant developments impacting the subaward, and resolving findings specifically related to the subaward.
The City has a grants manual in place that includes requirements of subrecipient and contract oversight. The policy includes processes to perform pre-award evaluations, post-award monitoring and closeout reporting to ensure compliance.
Condition: Minority Health – two subawards were tested for monitoring requirements. One of the subaward agreements did not include a required piece of information in the award document. CDBG - two subawards were tested for monitoring requirements. Pre-risk assessment procedures were not documented as performed prior to the subaward date on either subrecipient. In addition, one subrecipient had deficiencies noted in their annual audit. The City did not perform required monitoring duties to ensure the subrecipient took timely and appropriate action on the deficiencies reported.
Cause: Minority Health - the City did not communicate the federal assistance listing number in the subaward document. CDBG - did not document a pre-award risk assessment or follow up of corrective action for reported audit findings for their subrecipients.
Effect: The City did not have proper subrecipient monitoring documentation.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen procedures to ensure it complies with federal subrecipient monitoring requirements and its policies and procedures to perform all subrecipient oversight responsibilities to ensure compliance with federal subrecipient monitoring requirements.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-008 – Reporting (Material Weakness)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting. 2 CFR 200.303 requires nonfederal entities to establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Typical control procedures related to reporting are to verify the filed report is supported by supporting documentation and inspecting filed report and supporting documentation, noting supervisory review of reports performed to assure accuracy and completeness of data and information included in the report.
Condition: We selected nine reports for the three grant programs tested to test for controls over reporting requirements. No documentation of review or approval of the reports was available.
Cause: The City did not retain documentation of a review and approval of federal reports submitted.
Effect: The City did not have appropriate controls in place over documentation of reporting requirements.
Questioned Costs: None reported.
Recommendation: We recommend the City strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-009 – Reporting (Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting that include timely and accurate reporting. Reporting requirements are unique to each awarding agency and criteria is based on the guidelines and regulations set forth by the funding agency. Each program required quarterly reports to be submitted.
Condition: We selected nine reports for the three grant programs tested to test for timely and accurate reporting requirements. The following exceptions were noted:
• Minority Health: Two Federal Financial Report (FFR) and two Federal Performance Report (FPR) reports tested; the two FFR reports were not submitted by the due date and one FFR report did not agree or reconcile to the accounting records
• CDBG: Two quarterly cash reports and the FY23 Consolidated Annual Performance and Evaluation Report (CAPER) tested; the two cash on hand reports did not have supporting documentation for the amounts reported or documentation that amounts were reconciled to the City's accounting system. One cash report was also filed late.
• CRF: Two project and expenditure reports tested; one was not submitted and the other was submitted late. Expenditure information for one subrecipient was underreported by $186,364.
Cause: Minority Health FFR reports were not submitted until February 2025, well past the due date. In addition, one FFR was not properly supported. CDBG project profit and loss statements did not tie to the numbers on the reports, the reports were submitted based on the IDIS reports from the HUD site and were not reconciled to the general ledger. CRF subaward amounts reported did not reconcile back to the general ledger. Various reports were filed after the due date.
Effect: The City did not submit timely and accurate reports in compliance with federal reporting requirements.
Questioned Costs: None reported.
Recommendation: The City should ensure responsible personnel have a clear understanding of the reporting guidance. The City should implement policies and procedures to monitor due dates and review all reports prepared by the grants department or its designee to ensure accurate and timely reporting.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-012 – Subrecipient Monitoring (Significant Deficiency and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG).
Criteria: 2 CFR 200.332 establishes subrecipient monitoring requirements of all pass through entities. These requirements include that every subaward is clearly identified to the subrecipient as a subaward and includes the following information: assistance listings title and number, the dollar amount made available under each federal award, and the assistance listings number at the time of disbursement, etc.
These requirements also include evaluating each subrecipient's fraud risk and risk of noncompliance with a subaward to determine the appropriate subrecipient monitoring. Evaluations of a subrecipient's risk should consider the following:
(1) The subrecipient's prior experience with the same or similar subawards;
(2) The results of previous audits;
(3) Whether the subrecipient has new personnel or new or substantially changed systems; and
(4) The extent and results of any federal agency monitoring.
In addition, subrecipient activities must be monitored to ensure compliance with federal statutes, regulations, and terms and conditions of the subaward. Monitoring must include the review of financial and performance reports, ensure that corrective action is taken by the subrecipient on any significant developments impacting the subaward, and resolving findings specifically related to the subaward.
The City has a grants manual in place that includes requirements of subrecipient and contract oversight. The policy includes processes to perform pre-award evaluations, post-award monitoring and closeout reporting to ensure compliance.
Condition: Minority Health – two subawards were tested for monitoring requirements. One of the subaward agreements did not include a required piece of information in the award document. CDBG - two subawards were tested for monitoring requirements. Pre-risk assessment procedures were not documented as performed prior to the subaward date on either subrecipient. In addition, one subrecipient had deficiencies noted in their annual audit. The City did not perform required monitoring duties to ensure the subrecipient took timely and appropriate action on the deficiencies reported.
Cause: Minority Health - the City did not communicate the federal assistance listing number in the subaward document. CDBG - did not document a pre-award risk assessment or follow up of corrective action for reported audit findings for their subrecipients.
Effect: The City did not have proper subrecipient monitoring documentation.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen procedures to ensure it complies with federal subrecipient monitoring requirements and its policies and procedures to perform all subrecipient oversight responsibilities to ensure compliance with federal subrecipient monitoring requirements.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-011 – Allowable Costs (Material Weakness and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); HOME Investment Partnerships Program, ALN 14.239, Department of Housing and Urban Development (HOME).
Criteria: 2 CFR Part 200 Subpart E establishes cost principles to apply in determining costs under federal awards. Nonfederal entities are also required to establish controls over the disbursement process to ensure compliance with allowable cost requirements. According to the City's approved fiscal policies and procedures, all purchase orders, blanket purchase agreements and special purchase authorizations require review and approval by the Finance Director or Deputy Finance Director.
Condition: Minority Health - we selected a sample of 40 disbursements charged to the grant. Of the 40, 21 were not properly approved in accordance with the City’s fiscal policies and procedures. HOME - we selected a sample of seven non-payroll disbursements charged to the grant. Of those seven, two were not properly approved in accordance with the City’s fiscal policies and procedures.
Cause: Disbursements were not approved by the Finance Director or Deputy Finance Director as required by the City’s fiscal policies and procedures. The workflow rules set up in the system are not consistent with the required approval workflow.
Effect: The City did not obtain proper approvals according to the policy of established controls.
Questioned Costs: None reported.
Recommendation: We recommend the City should update the fiscal policies and procedures to incorporate and clearly define the control system of approvals.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-011 – Allowable Costs (Material Weakness and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); HOME Investment Partnerships Program, ALN 14.239, Department of Housing and Urban Development (HOME).
Criteria: 2 CFR Part 200 Subpart E establishes cost principles to apply in determining costs under federal awards. Nonfederal entities are also required to establish controls over the disbursement process to ensure compliance with allowable cost requirements. According to the City's approved fiscal policies and procedures, all purchase orders, blanket purchase agreements and special purchase authorizations require review and approval by the Finance Director or Deputy Finance Director.
Condition: Minority Health - we selected a sample of 40 disbursements charged to the grant. Of the 40, 21 were not properly approved in accordance with the City’s fiscal policies and procedures. HOME - we selected a sample of seven non-payroll disbursements charged to the grant. Of those seven, two were not properly approved in accordance with the City’s fiscal policies and procedures.
Cause: Disbursements were not approved by the Finance Director or Deputy Finance Director as required by the City’s fiscal policies and procedures. The workflow rules set up in the system are not consistent with the required approval workflow.
Effect: The City did not obtain proper approvals according to the policy of established controls.
Questioned Costs: None reported.
Recommendation: We recommend the City should update the fiscal policies and procedures to incorporate and clearly define the control system of approvals.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-011 – Allowable Costs (Material Weakness and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); HOME Investment Partnerships Program, ALN 14.239, Department of Housing and Urban Development (HOME).
Criteria: 2 CFR Part 200 Subpart E establishes cost principles to apply in determining costs under federal awards. Nonfederal entities are also required to establish controls over the disbursement process to ensure compliance with allowable cost requirements. According to the City's approved fiscal policies and procedures, all purchase orders, blanket purchase agreements and special purchase authorizations require review and approval by the Finance Director or Deputy Finance Director.
Condition: Minority Health - we selected a sample of 40 disbursements charged to the grant. Of the 40, 21 were not properly approved in accordance with the City’s fiscal policies and procedures. HOME - we selected a sample of seven non-payroll disbursements charged to the grant. Of those seven, two were not properly approved in accordance with the City’s fiscal policies and procedures.
Cause: Disbursements were not approved by the Finance Director or Deputy Finance Director as required by the City’s fiscal policies and procedures. The workflow rules set up in the system are not consistent with the required approval workflow.
Effect: The City did not obtain proper approvals according to the policy of established controls.
Questioned Costs: None reported.
Recommendation: We recommend the City should update the fiscal policies and procedures to incorporate and clearly define the control system of approvals.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-011 – Allowable Costs (Material Weakness and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); HOME Investment Partnerships Program, ALN 14.239, Department of Housing and Urban Development (HOME).
Criteria: 2 CFR Part 200 Subpart E establishes cost principles to apply in determining costs under federal awards. Nonfederal entities are also required to establish controls over the disbursement process to ensure compliance with allowable cost requirements. According to the City's approved fiscal policies and procedures, all purchase orders, blanket purchase agreements and special purchase authorizations require review and approval by the Finance Director or Deputy Finance Director.
Condition: Minority Health - we selected a sample of 40 disbursements charged to the grant. Of the 40, 21 were not properly approved in accordance with the City’s fiscal policies and procedures. HOME - we selected a sample of seven non-payroll disbursements charged to the grant. Of those seven, two were not properly approved in accordance with the City’s fiscal policies and procedures.
Cause: Disbursements were not approved by the Finance Director or Deputy Finance Director as required by the City’s fiscal policies and procedures. The workflow rules set up in the system are not consistent with the required approval workflow.
Effect: The City did not obtain proper approvals according to the policy of established controls.
Questioned Costs: None reported.
Recommendation: We recommend the City should update the fiscal policies and procedures to incorporate and clearly define the control system of approvals.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-011 – Allowable Costs (Material Weakness and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); HOME Investment Partnerships Program, ALN 14.239, Department of Housing and Urban Development (HOME).
Criteria: 2 CFR Part 200 Subpart E establishes cost principles to apply in determining costs under federal awards. Nonfederal entities are also required to establish controls over the disbursement process to ensure compliance with allowable cost requirements. According to the City's approved fiscal policies and procedures, all purchase orders, blanket purchase agreements and special purchase authorizations require review and approval by the Finance Director or Deputy Finance Director.
Condition: Minority Health - we selected a sample of 40 disbursements charged to the grant. Of the 40, 21 were not properly approved in accordance with the City’s fiscal policies and procedures. HOME - we selected a sample of seven non-payroll disbursements charged to the grant. Of those seven, two were not properly approved in accordance with the City’s fiscal policies and procedures.
Cause: Disbursements were not approved by the Finance Director or Deputy Finance Director as required by the City’s fiscal policies and procedures. The workflow rules set up in the system are not consistent with the required approval workflow.
Effect: The City did not obtain proper approvals according to the policy of established controls.
Questioned Costs: None reported.
Recommendation: We recommend the City should update the fiscal policies and procedures to incorporate and clearly define the control system of approvals.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-011 – Allowable Costs (Material Weakness and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); HOME Investment Partnerships Program, ALN 14.239, Department of Housing and Urban Development (HOME).
Criteria: 2 CFR Part 200 Subpart E establishes cost principles to apply in determining costs under federal awards. Nonfederal entities are also required to establish controls over the disbursement process to ensure compliance with allowable cost requirements. According to the City's approved fiscal policies and procedures, all purchase orders, blanket purchase agreements and special purchase authorizations require review and approval by the Finance Director or Deputy Finance Director.
Condition: Minority Health - we selected a sample of 40 disbursements charged to the grant. Of the 40, 21 were not properly approved in accordance with the City’s fiscal policies and procedures. HOME - we selected a sample of seven non-payroll disbursements charged to the grant. Of those seven, two were not properly approved in accordance with the City’s fiscal policies and procedures.
Cause: Disbursements were not approved by the Finance Director or Deputy Finance Director as required by the City’s fiscal policies and procedures. The workflow rules set up in the system are not consistent with the required approval workflow.
Effect: The City did not obtain proper approvals according to the policy of established controls.
Questioned Costs: None reported.
Recommendation: We recommend the City should update the fiscal policies and procedures to incorporate and clearly define the control system of approvals.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-008 – Reporting (Material Weakness)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting. 2 CFR 200.303 requires nonfederal entities to establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Typical control procedures related to reporting are to verify the filed report is supported by supporting documentation and inspecting filed report and supporting documentation, noting supervisory review of reports performed to assure accuracy and completeness of data and information included in the report.
Condition: We selected nine reports for the three grant programs tested to test for controls over reporting requirements. No documentation of review or approval of the reports was available.
Cause: The City did not retain documentation of a review and approval of federal reports submitted.
Effect: The City did not have appropriate controls in place over documentation of reporting requirements.
Questioned Costs: None reported.
Recommendation: We recommend the City strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-009 – Reporting (Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting that include timely and accurate reporting. Reporting requirements are unique to each awarding agency and criteria is based on the guidelines and regulations set forth by the funding agency. Each program required quarterly reports to be submitted.
Condition: We selected nine reports for the three grant programs tested to test for timely and accurate reporting requirements. The following exceptions were noted:
• Minority Health: Two Federal Financial Report (FFR) and two Federal Performance Report (FPR) reports tested; the two FFR reports were not submitted by the due date and one FFR report did not agree or reconcile to the accounting records
• CDBG: Two quarterly cash reports and the FY23 Consolidated Annual Performance and Evaluation Report (CAPER) tested; the two cash on hand reports did not have supporting documentation for the amounts reported or documentation that amounts were reconciled to the City's accounting system. One cash report was also filed late.
• CRF: Two project and expenditure reports tested; one was not submitted and the other was submitted late. Expenditure information for one subrecipient was underreported by $186,364.
Cause: Minority Health FFR reports were not submitted until February 2025, well past the due date. In addition, one FFR was not properly supported. CDBG project profit and loss statements did not tie to the numbers on the reports, the reports were submitted based on the IDIS reports from the HUD site and were not reconciled to the general ledger. CRF subaward amounts reported did not reconcile back to the general ledger. Various reports were filed after the due date.
Effect: The City did not submit timely and accurate reports in compliance with federal reporting requirements.
Questioned Costs: None reported.
Recommendation: The City should ensure responsible personnel have a clear understanding of the reporting guidance. The City should implement policies and procedures to monitor due dates and review all reports prepared by the grants department or its designee to ensure accurate and timely reporting.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-010 – Procurement (Material Weakness and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.317-327 establishes procurement standards for nonfederal entities. This includes different requirements based on the amount of purchases made from the vendor during the year. Specifically, the recipient or subrecipient must maintain and use documented procedures for procurement transactions under a federal award or subaward, including for acquisition of property or services. Per the City’s Fiscal Policy and Procedures Manual, the simplified acquisition method has a lower threshold of $15,000. All contracts and purchases over $15,000 must be bid.
Condition: We selected eight vendors for procurement testing. Of those eight, it was noted that for five vendors the City did not document the appropriate procurement procedures took place.
Cause: Minority Health - the City contracted or accumulated costs for four vendors over the simplified acquisition threshold and did not provide documentation of bid procedures. CRF - the City contracted one vendor over the simplified acquisition threshold and did not provide documentation of bid procedures.
Effect: The City did not have appropriate documentation to support compliance with the procurement policy.
Questioned Costs: Minority Health - $433,369; CRF - $22,813
Recommendation: We recommend the City reinforce its procurement policies through regular training and clear communication to all relevant staff members. Additionally, implementing a periodic review process to ensure compliance with this policy can help prevent future occurrences.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-008 – Reporting (Material Weakness)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting. 2 CFR 200.303 requires nonfederal entities to establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Typical control procedures related to reporting are to verify the filed report is supported by supporting documentation and inspecting filed report and supporting documentation, noting supervisory review of reports performed to assure accuracy and completeness of data and information included in the report.
Condition: We selected nine reports for the three grant programs tested to test for controls over reporting requirements. No documentation of review or approval of the reports was available.
Cause: The City did not retain documentation of a review and approval of federal reports submitted.
Effect: The City did not have appropriate controls in place over documentation of reporting requirements.
Questioned Costs: None reported.
Recommendation: We recommend the City strengthen its policies and procedures over the grant reporting process to ensure controls are properly implemented and working effectively.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-009 – Reporting (Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.328-330 establish the requirements of nonfederal entities for financial and performance reporting that include timely and accurate reporting. Reporting requirements are unique to each awarding agency and criteria is based on the guidelines and regulations set forth by the funding agency. Each program required quarterly reports to be submitted.
Condition: We selected nine reports for the three grant programs tested to test for timely and accurate reporting requirements. The following exceptions were noted:
• Minority Health: Two Federal Financial Report (FFR) and two Federal Performance Report (FPR) reports tested; the two FFR reports were not submitted by the due date and one FFR report did not agree or reconcile to the accounting records
• CDBG: Two quarterly cash reports and the FY23 Consolidated Annual Performance and Evaluation Report (CAPER) tested; the two cash on hand reports did not have supporting documentation for the amounts reported or documentation that amounts were reconciled to the City's accounting system. One cash report was also filed late.
• CRF: Two project and expenditure reports tested; one was not submitted and the other was submitted late. Expenditure information for one subrecipient was underreported by $186,364.
Cause: Minority Health FFR reports were not submitted until February 2025, well past the due date. In addition, one FFR was not properly supported. CDBG project profit and loss statements did not tie to the numbers on the reports, the reports were submitted based on the IDIS reports from the HUD site and were not reconciled to the general ledger. CRF subaward amounts reported did not reconcile back to the general ledger. Various reports were filed after the due date.
Effect: The City did not submit timely and accurate reports in compliance with federal reporting requirements.
Questioned Costs: None reported.
Recommendation: The City should ensure responsible personnel have a clear understanding of the reporting guidance. The City should implement policies and procedures to monitor due dates and review all reports prepared by the grants department or its designee to ensure accurate and timely reporting.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-010 – Procurement (Material Weakness and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, Department of the Treasury (CRF).
Criteria: 2 CFR 200.317-327 establishes procurement standards for nonfederal entities. This includes different requirements based on the amount of purchases made from the vendor during the year. Specifically, the recipient or subrecipient must maintain and use documented procedures for procurement transactions under a federal award or subaward, including for acquisition of property or services. Per the City’s Fiscal Policy and Procedures Manual, the simplified acquisition method has a lower threshold of $15,000. All contracts and purchases over $15,000 must be bid.
Condition: We selected eight vendors for procurement testing. Of those eight, it was noted that for five vendors the City did not document the appropriate procurement procedures took place.
Cause: Minority Health - the City contracted or accumulated costs for four vendors over the simplified acquisition threshold and did not provide documentation of bid procedures. CRF - the City contracted one vendor over the simplified acquisition threshold and did not provide documentation of bid procedures.
Effect: The City did not have appropriate documentation to support compliance with the procurement policy.
Questioned Costs: Minority Health - $433,369; CRF - $22,813
Recommendation: We recommend the City reinforce its procurement policies through regular training and clear communication to all relevant staff members. Additionally, implementing a periodic review process to ensure compliance with this policy can help prevent future occurrences.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-011 – Allowable Costs (Material Weakness and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); HOME Investment Partnerships Program, ALN 14.239, Department of Housing and Urban Development (HOME).
Criteria: 2 CFR Part 200 Subpart E establishes cost principles to apply in determining costs under federal awards. Nonfederal entities are also required to establish controls over the disbursement process to ensure compliance with allowable cost requirements. According to the City's approved fiscal policies and procedures, all purchase orders, blanket purchase agreements and special purchase authorizations require review and approval by the Finance Director or Deputy Finance Director.
Condition: Minority Health - we selected a sample of 40 disbursements charged to the grant. Of the 40, 21 were not properly approved in accordance with the City’s fiscal policies and procedures. HOME - we selected a sample of seven non-payroll disbursements charged to the grant. Of those seven, two were not properly approved in accordance with the City’s fiscal policies and procedures.
Cause: Disbursements were not approved by the Finance Director or Deputy Finance Director as required by the City’s fiscal policies and procedures. The workflow rules set up in the system are not consistent with the required approval workflow.
Effect: The City did not obtain proper approvals according to the policy of established controls.
Questioned Costs: None reported.
Recommendation: We recommend the City should update the fiscal policies and procedures to incorporate and clearly define the control system of approvals.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-012 – Subrecipient Monitoring (Significant Deficiency and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health); Community Development Block Grants, ALN 14.218, Department of Housing and Urban Development (CDBG).
Criteria: 2 CFR 200.332 establishes subrecipient monitoring requirements of all pass through entities. These requirements include that every subaward is clearly identified to the subrecipient as a subaward and includes the following information: assistance listings title and number, the dollar amount made available under each federal award, and the assistance listings number at the time of disbursement, etc.
These requirements also include evaluating each subrecipient's fraud risk and risk of noncompliance with a subaward to determine the appropriate subrecipient monitoring. Evaluations of a subrecipient's risk should consider the following:
(1) The subrecipient's prior experience with the same or similar subawards;
(2) The results of previous audits;
(3) Whether the subrecipient has new personnel or new or substantially changed systems; and
(4) The extent and results of any federal agency monitoring.
In addition, subrecipient activities must be monitored to ensure compliance with federal statutes, regulations, and terms and conditions of the subaward. Monitoring must include the review of financial and performance reports, ensure that corrective action is taken by the subrecipient on any significant developments impacting the subaward, and resolving findings specifically related to the subaward.
The City has a grants manual in place that includes requirements of subrecipient and contract oversight. The policy includes processes to perform pre-award evaluations, post-award monitoring and closeout reporting to ensure compliance.
Condition: Minority Health – two subawards were tested for monitoring requirements. One of the subaward agreements did not include a required piece of information in the award document. CDBG - two subawards were tested for monitoring requirements. Pre-risk assessment procedures were not documented as performed prior to the subaward date on either subrecipient. In addition, one subrecipient had deficiencies noted in their annual audit. The City did not perform required monitoring duties to ensure the subrecipient took timely and appropriate action on the deficiencies reported.
Cause: Minority Health - the City did not communicate the federal assistance listing number in the subaward document. CDBG - did not document a pre-award risk assessment or follow up of corrective action for reported audit findings for their subrecipients.
Effect: The City did not have proper subrecipient monitoring documentation.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen procedures to ensure it complies with federal subrecipient monitoring requirements and its policies and procedures to perform all subrecipient oversight responsibilities to ensure compliance with federal subrecipient monitoring requirements.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-014 – Cash Management (Significant Deficiency and Noncompliance)
Identification of the Federal Program: Community Program to Improve Minority Health, ALN 93.137, Department of Health and Human Services (Minority Health).
Criteria: 2 CFR 200.305 establishes methods of receiving payment from federal agencies. 2 CFR 200.303 established that recipients must establish, document and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). According to the City's approved fiscal policies and procedures, drawdown reports/reimbursement requests must be approved by the grants department and accounting manager or CFO.
Condition: The City drew the remaining balance on the Minority Health award during the year. Documentation of review and approval for the draw was not available.
Cause: The City is experiencing turnovers and staffing challenges which have led to some gaps in following procedures.
Effect: The City did not document proper controls in place over cash management.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen procedures to ensure it complies with its policies and procedures to ensure appropriate level of management is reviewing cash drawdown requests.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.
Finding 2024-013 – Equipment Management (Noncompliance)
Identification of the Federal Program: All programs
Criteria: 2 CFR 200.313 requires a physical inventory of property must be taken and the results reconciled with the property records at least once every two years.
Condition/Cause/Effect: The City has not performed a physical inventory since September 2022.
Questioned Costs: None reported.
Recommendation: We recommend the City should strengthen policies and procedures to ensure a physical inventory of all city-wide departments is performed every two years.
Views of Responsible Officials: The City agrees with the finding. See Management’s View and Corrective Action Plan included at the end of the report.