Audit 371774

Finding 2020-005 - Material Weakness - Missing Supporting Documentation CFDA Number and Title: 84.287 Twenty-First Century Community Learning Centers Applicable Compliance Requirements: Activities Allowed or Unallowed Allowable Costs/Cost Principles Criteria: According to 2 CFR §200.430(i), charges to federal awards for salaries must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Additionally, the Twenty-First Century Community Learning Centers program requires grantees to maintain documentation that supports personnel costs charged to the grant, including time and effort records for staff funded in whole or in part by federal funds. Condition: During the audit of expenditures under the Twenty-First Century Community Learning Centers program pay records, such as timesheets, pay rates or equivalent documentation, which support time and effort charged to the grant were not available for review. The missing files had been stored on a drive maintained by a former employee and could not be recovered. Cause: The City did not retain or migrate payroll documentation from the former employee’s system, resulting in the loss of critical records necessary to support grant expenditures. Effect or Potential Effect: Without adequate documentation, the organization cannot substantiate the allowability of payroll costs charged to the 21st CCLC grant. This may result in questioned costs and potential repayment or corrective action requirements from the granting agency. Questioned Costs: $120,064 represent salaries charged to the grant where no timesheets could be provided. Context: The ten missing timesheets were for specific pay periods throughout the fiscal year. The questioned costs represent those employee’s salaries charged to the grant for the year. Recommendation: The City should establish and enforce a formal records retention policy that ensures all grant-related documentation, including payroll and time and effort records, is preserved and accessible. Additionally, procedures should be implemented to verify that personnel costs charged to the grant comply with federal requirements and program-specific guidance. Management’s Responses: See corrective action plan.

Finding 2020-006 - Significant Deficiency - Untimely Submissions CFDA Number and Title: 84.287 Twenty-First Century Community Learning Centers Applicable Compliance Requirements: Reporting Criteria: Per the Uniform Guidance, states, local governments, and nonprofit organizations (“the auditee”) that annually spend $750,000 or more in federal awards must perform a Single Audit and complete Form SF-SAC (“Data Collection Form”) and submit both to the Federal Audit Clearinghouse (“FAC”). The auditee should submit the Data Collection Form and the reporting package to the FAC within the earlier of 30 days after the receipt of the auditors’ reports or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. Condition: The City did not submit the Data Collection Form and the reporting package for 2020 to the FAC by the due date in accordance with Uniform Guidance requirements. Cause: The year end closing of the general ledger and preparation for audit were not completed by management in a timely manner. Context: During our audit we noted that significant reconciliations, analyses and information were not available on a timely basis to complete the audit. Effect: The City did not comply with the Uniform Guidance reporting requirements. Recommendation: We recommend that the City submit the reports referred to above on a timely basis as required. Management’s Responses: See corrective action plan.