FAC Explorer

Audit 361997

FY End
2024-12-30
Total Expended
$3.98M
Findings
4
Programs
2
Organization: City of Harahan (LA)
Year: 2024 Accepted: 2025-07-11
Auditor: Eisneramper LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
571119 2024-004 Significant Deficiency - I
571120 2024-003 Significant Deficiency - L
1147561 2024-004 Significant Deficiency - I
1147562 2024-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.60M Yes 2
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.38M - 0

Contacts

Name Title Type
M42NBFC3VBW6 Carrie Heustis Auditee
5047376383 Amanda Strebeck Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the accompanying Schedule are reported on the modified accrual basis of accounting, which is described in Note 1 to the City’s financial statements. Such expenditures are recognized following the cost principles contained in accordance with the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: During the year ended December 31, 2024, the City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the City of Harahan (the City) under programs of the federal government for the year ended December 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The City’s reporting entity is defined in Note 1 to the financial statements for the year ended December 31, 2024. Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included on the Schedule.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the accompanying Schedule are reported on the modified accrual basis of accounting, which is described in Note 1 to the City’s financial statements. Such expenditures are recognized following the cost principles contained in accordance with the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: During the year ended December 31, 2024, the City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the accompanying Schedule are reported on the modified accrual basis of accounting, which is described in Note 1 to the City’s financial statements. Such expenditures are recognized following the cost principles contained in accordance with the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented, or used in the preparation of, the basic financial statements.
Title: Relationship to Financial Statements Accounting Policies: Expenditures reported on the accompanying Schedule are reported on the modified accrual basis of accounting, which is described in Note 1 to the City’s financial statements. Such expenditures are recognized following the cost principles contained in accordance with the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: During the year ended December 31, 2024, the City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Federal award expenditures are reported in the City’s financial statements as follows: Federal Sources ARPA fund American Rescue Plan Act (ARPA) $ 2,598,260 FEMA fund Federal Energency Management Agency (FEMA) $ 1,384,471 Total federal revenue $ 3,982,731
Title: De Minimis Cost Rate Accounting Policies: Expenditures reported on the accompanying Schedule are reported on the modified accrual basis of accounting, which is described in Note 1 to the City’s financial statements. Such expenditures are recognized following the cost principles contained in accordance with the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: During the year ended December 31, 2024, the City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. During the year ended December 31, 2024, the City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Amounts Passed Through to Subrecipients Accounting Policies: Expenditures reported on the accompanying Schedule are reported on the modified accrual basis of accounting, which is described in Note 1 to the City’s financial statements. Such expenditures are recognized following the cost principles contained in accordance with the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: During the year ended December 31, 2024, the City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. During the year ended December 31, 2024, the City did not pass through any federal funds to subrecipients.
Title: Disaster Grant – Public Assistance Listing 97.036 Accounting Policies: Expenditures reported on the accompanying Schedule are reported on the modified accrual basis of accounting, which is described in Note 1 to the City’s financial statements. Such expenditures are recognized following the cost principles contained in accordance with the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: During the year ended December 31, 2024, the City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The FEMA grant expenditures are reported on the SEFA when 1) FEMA has approved the project application, and 2) eligible expenditures have been incurred. During the year ending December 31, 2024, FEMA approved $1,384,471 of eligible expenditures, of which $947,780 and $436,691 were incurred during the years ending December 31, 2023, and 2022, respectively.

Finding Details

Finding 2024-004
2024-004 COMPLIANCE AND INTERNAL CONTROL OVER PROCUREMENT – ARPA Assistance Listing: 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: The American Rescue Plan Act (ARPA) provided significant funding to state, local, and tribal governments to address the public health and economic impacts of the COVID-19 pandemic. These funds are subject to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200), which include the specific standards under Public Bid Law. Condition: For the year ended December 31, 2024, twelve vendors with expenditures totaling $ 2,179,730 were selected for testing. We noted for one of the vendors selected for testing, the City was unable to provide any contract or bid support for the project, which incurred $434,190 of expenditures during the year. Universe/Population: The total population for procurement considerations was all vendors of the American Rescue Plan Act whose transactions for the year ended December 31, 2024, exceeded the micro-purchase threshold of $10,000. Payroll and benefit-related transactions were excluded from the population. Based on these requirements, the population consisted of twenty-three vendors totaling $2,790,345. Sample size : A sample of 12 vendors were selected for testing based on those with total expenditures over $10,000 during the fiscal year. Cause: The City did not adhere to compliance with Uniform Guidance Federal regulations per 2 CFR section 200.320 and its established procurement policy. The City did not maintain appropriate records needed to evidence compliance with Bid Law requirements. Effect: The City may enter into contracts with vendors that do not provide the best possible price when using public funds. Questioned Costs: For the purposes of this finding, there were no questioned costs. Recommendation: The City should strengthen controls to ensure appropriate consideration to competitors is given and adequate documentation is maintained with respect to procurement in accordance with federal Uniform Guidance requirements. Management’s response: The City concurs with the finding described above.
Finding 2024-003
2024-003 PROCEDURES OVER PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Criteria: The City should have systems of internal accounting control which ensures the schedule of expenditures of federal awards (SEFA) is presented in accordance with Title I U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) on a timely basis. Universe/Population: Not applicable. Condition: The City did not perform final reconciliations of the American Rescue Plan Act (ARPA) and the Federal Emergency Management Agency (FEMA) expenditures necessary to prepare an accurate and complete SEFA on a timely basis. Cause: Due to the complexity of the calculations for recognizing ARPA and FEMA expenditures on the SEFA, the City provided adjustments to the original SEFA provided to the auditors. Effect: The original SEFA required adjustments necessary to correct the balances reported as federal expenditures for ARPA and FEMA. Questioned Costs: For the purposes of this finding, there were no questioned costs. Recommendation: The City should strengthen its controls over the reconciliation of federal program expenditures and associated calculations to ensure the information and balances that are accumulated and reported on the SEFA are an accurate representation of federal expenditures and based on the reporting requirements provided in the federal award and the compliance supplement. Management’s Response: The City concurs with the observation and will implement procedures in 2024 as recommended.
Finding 2024-004
2024-004 COMPLIANCE AND INTERNAL CONTROL OVER PROCUREMENT – ARPA Assistance Listing: 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: The American Rescue Plan Act (ARPA) provided significant funding to state, local, and tribal governments to address the public health and economic impacts of the COVID-19 pandemic. These funds are subject to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200), which include the specific standards under Public Bid Law. Condition: For the year ended December 31, 2024, twelve vendors with expenditures totaling $ 2,179,730 were selected for testing. We noted for one of the vendors selected for testing, the City was unable to provide any contract or bid support for the project, which incurred $434,190 of expenditures during the year. Universe/Population: The total population for procurement considerations was all vendors of the American Rescue Plan Act whose transactions for the year ended December 31, 2024, exceeded the micro-purchase threshold of $10,000. Payroll and benefit-related transactions were excluded from the population. Based on these requirements, the population consisted of twenty-three vendors totaling $2,790,345. Sample size : A sample of 12 vendors were selected for testing based on those with total expenditures over $10,000 during the fiscal year. Cause: The City did not adhere to compliance with Uniform Guidance Federal regulations per 2 CFR section 200.320 and its established procurement policy. The City did not maintain appropriate records needed to evidence compliance with Bid Law requirements. Effect: The City may enter into contracts with vendors that do not provide the best possible price when using public funds. Questioned Costs: For the purposes of this finding, there were no questioned costs. Recommendation: The City should strengthen controls to ensure appropriate consideration to competitors is given and adequate documentation is maintained with respect to procurement in accordance with federal Uniform Guidance requirements. Management’s response: The City concurs with the finding described above.
Finding 2024-003
2024-003 PROCEDURES OVER PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Criteria: The City should have systems of internal accounting control which ensures the schedule of expenditures of federal awards (SEFA) is presented in accordance with Title I U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) on a timely basis. Universe/Population: Not applicable. Condition: The City did not perform final reconciliations of the American Rescue Plan Act (ARPA) and the Federal Emergency Management Agency (FEMA) expenditures necessary to prepare an accurate and complete SEFA on a timely basis. Cause: Due to the complexity of the calculations for recognizing ARPA and FEMA expenditures on the SEFA, the City provided adjustments to the original SEFA provided to the auditors. Effect: The original SEFA required adjustments necessary to correct the balances reported as federal expenditures for ARPA and FEMA. Questioned Costs: For the purposes of this finding, there were no questioned costs. Recommendation: The City should strengthen its controls over the reconciliation of federal program expenditures and associated calculations to ensure the information and balances that are accumulated and reported on the SEFA are an accurate representation of federal expenditures and based on the reporting requirements provided in the federal award and the compliance supplement. Management’s Response: The City concurs with the observation and will implement procedures in 2024 as recommended.