Audit 414486

Material Weakness Finding 2025–001: Grant Reporting Federal Program: Community Development Block Grant / Entitlement Grants (ALN #14.218) Criteria: The SEFA should report federal awards expended during the period covered by the financial statements and be supported by accounting and grant records. Condition: For 1 out of 1 sample tested (100%), the auditee reported expenses for the federal program on the SEFA in a period different from when the related federal award activity occurred. Cause: SEFA preparation and review procedures did not consistently verify expenditure cutoff and proper fiscal year reporting before the schedule was finalized. Effect: Incorrect period reporting may misstate federal expenditures on the SEFA and affect major program determination, Single Audit planning, and compliance with federal reporting requirements. Questioned Costs: $242,876 Recommendation: Management should implement a documented SEFA cutoff review to verify that expenditures are reported in the correct fiscal year and supported by the general ledger and grant records. Corrective Action Plan: The City and the Comptroller will implement controls to properly report expenses on the SEFA in the correct period.