Assistance Listing, Federal Agency, and Program Name - ALN 14.218, Department of Housing and Urban Development, Community Development Block Grants Federal Award Identification Number and Year - B24MC260070 2025 Pass through Entity - N/A Finding Type - Material weakness Repeat Finding - No Criteria - Per 2 CFR 200.303, the recipient must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient 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). Condition - The City initially reported $30,000 of expenditures on the SEFA that related to activity not related to fiscal year 2025. Questioned Costs - N/A If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - Recipients of federal awards must have controls in place to verify that costs being recorded in the appropriate period. Cause and Effect - The City did not properly allocate the expenditures over the term of the subsciption which led to expenses being improperly recorded in the City's initial SEFA sent to the auditors. Recommendation - We recommend that the City implement stronger internal controls to ensure the expenses are reviewed for cutoff and approved before they are charged to the grant. Views of Responsible Officials and Planned Corrective Actions - The City will ensure that all future expenses under this program go through stronger internal control review for cutoff.
Assistance Listing, Federal Agency, and Program Name - ALN 21.027, Department of the Treasury, COVID 19 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - CW 5912A 2026 2021 Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - 2 CFR 200.403(f) Not be included as a cost or used to meet cost sharing requirements of any other federally financed program in either the current or a prior period. Condition - The City applied the same expenses to pass through and direct funded awards, which resulted in reported quarterly reports and SEFA expenditures including approximately $2.7 million of expenditures that were being double counted. Questioned Costs - N/A If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - The City applied approximately $2.7 million to the direct funded ARPA funds that were already reimbursed under CSLFRF pass through agreements. Cause and Effect - Direct CSLFRF funds were utilized for various water projects that were already reimbursed under CSLFRF pass through agreements, which resulted in an overstated expenditure amount reported on the City's initial SEFA shared with the auditors and reporting for direct CSLRFR being incorrect for the year. Recommendation - We recommend that the City implement stronger internal controls to ensure the reports are reviewed for completenss and accuracy. Views of Responsible Officials and Corrective Action Plan - The City will ensure that all future expenses under this program are in compliance and under CSLFRF guidelines.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, Department of Housing and Urban Development, Community Development Block Grants and ALN 21.027, Department of the Treasury, COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - B24MC260070 2025 and CW 5912A 2026 2021 Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR Section 200.510(b), cities and other non federal entities must create a Schedule of Expenditures of Federal Awards (SEFA) if they expend more than $1 million in federal awards during their fiscal year. Condition - The City did not accurately prepare a SEFA that included all federal expenditures in fiscal year 2025, which resulted in a increase of approximately $7.6 million. Questioned Costs - N/A If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - The City did not accurately prepare a SEFA based on the activity for the year ended June 30, 2025. Cause and Effect - Improper recognition of federal awards which includes the grant agreement periods and the amount of expenditures originally provided created issues with the amounts reported to the auditors and led to the correction of the SEFA by an amount of $7.6 million from the amounts that were originally provided. Recommendation - The City should assign an individual to prepare the SEFA, along with another individual to approve it to ensure that it is properly recorded. Views of Responsible Officials and Planned Corrective Actions - The City will ensure that all future expenditures of federal awards are included on the SEFA by assigned staff to prepare and review the SEFA and track the amounts throughout the year.
Assistance Listing, Federal Agency, and Program Name - ALN 14.218, Department of Housing and Urban Development, Community Development Block Grants Federal Award Identification Number and Year - B24MC260070 2025 Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 24 CFR section 91, submission of CAPER must occur within 90 days of fiscal year end. Condition - The City failed to file their CAPER within the 90 day reporting window. Questioned Costs - N/A If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - Recipients of CDBG federal awards must submit the annual CAPER report within 90 days after the close of the program year. Cause and Effect - The City did not timely submit their CAPER which the State accepted. Recommendation - The City should ensure that all reports are properly submitted prior to the date they are due. Views of Responsible Officials and Planned Corrective Actions - The City will ensure that all future reporting requirements under this program are met, including reporting deadlines.