Audit 41501

FY End
2022-06-30
Total Expended
$44.54M
Findings
2
Programs
53
Organization: City of Lynchburg, Virginia (VA)
Year: 2022 Accepted: 2022-12-27

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
46691 2022-001 - - E
623133 2022-001 - - E

Programs

ALN Program Spent Major Findings
93.659 Adoption Assistance $3.36M - 0
66.458 Capitalization Grants for Clean Water State Revolving Funds $1.39M - 0
93.658 Foster Care_title IV-E $1.37M - 0
10.553 School Breakfast Program $1.31M - 0
93.778 Medical Assistance Program $1.15M - 0
93.558 Temporary Assistance for Needy Families $1.11M - 0
93.667 Social Services Block Grant $1.08M - 0
20.106 Airport Improvement Program $933,949 Yes 0
17.258 Wia Adult Program $426,847 Yes 0
17.259 Wia Youth Activities $388,203 Yes 0
10.555 National School Lunch Program $381,032 - 0
16.575 Crime Victim Assistance $362,677 - 0
14.218 Community Development Block Grants/entitlement Grants $332,797 Yes 0
84.367 Improving Teacher Quality State Grants $284,421 - 0
14.239 Home Investment Partnerships Program $258,194 - 0
10.559 Summer Food Service Program for Children $256,230 - 0
84.048 Career and Technical Education -- Basic Grants to States $232,438 - 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $195,414 - 0
21.019 Coronavirus Relief Fund $154,697 - 0
93.568 Low-Income Home Energy Assistance $153,710 - 0
84.010 Title I Grants to Local Educational Agencies $140,136 Yes 0
97.067 Homeland Security Grant Program $122,990 - 0
16.590 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program $114,766 - 0
84.027 Special Education_grants to States $92,028 Yes 0
97.044 Assistance to Firefighters Grant $88,940 - 0
97.090 Airport Leo Cooperative Agreement $87,350 - 0
93.556 Promoting Safe and Stable Families $68,031 - 0
17.278 Wia Dislocated Worker Formula Grants $49,910 Yes 0
84.425 Education Stabilization Fund $49,840 Yes 0
84.424 Student Support and Academic Enrichment Program $46,991 - 0
20.205 Highway Planning and Construction $36,485 - 0
16.588 Violence Against Women Formula Grants $33,013 - 0
10.558 Child and Adult Care Food Program $32,592 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $32,305 Yes 0
16.607 Bulletproof Vest Partnership Program $32,270 - 0
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $27,637 - 0
10.331 Food Insecurity Nutrition Incentive Grants Program $26,322 - 0
20.607 Alcohol Open Container Requirements $23,998 - 0
97.042 Emergency Management Performance Grants $23,423 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $20,608 - 0
20.600 State and Community Highway Safety $16,536 - 0
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $10,791 - 0
93.767 Children's Health Insurance Program $10,364 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $6,840 - 0
93.599 Chafee Education and Training Vouchers Program (etv) $4,633 - 0
93.566 Refugee and Entrant Assistance_state Administered Programs $4,336 - 0
84.173 Special Education_preschool Grants $3,257 Yes 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $1,937 - 0
93.575 Child Care and Development Block Grant $0 - 0
16.922 Equitable Sharing Program $0 - 0
84.287 Twenty-First Century Community Learning Centers $0 - 0
84.365 English Language Acquisition State Grants $0 - 0
84.000 Title X-C - No Child Left Behind Act $0 - 0

Contacts

Name Title Type
TFEAS9D28828 Donna Witt Auditee
4344554220 Susan Chapman Auditor
No contacts on file

Notes to SEFA

Title: Business Development Centre, Inc - Revolving Loan Fund Accounting Policies: The accompanying schedule of federal awards is prepared on the modified accrual basis of accounting. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The City has elected to use the de minimis 10% cost rate for certain grants. The Centre administers the Economic Development Administration Special Economic Adjustment Assistance Revolving Loan Fund Program ALN 11.307 (01-49-03245) on behalf of the City of Lynchburg. Loans under this program are subject to various restrictions as determined by the Economic Development Administration. The Centre received the funds indicated as follows through the fiscal year ended June 30, 1998. No funds have been received since that date.Federal State LocalAmount received through June 30, 1993 $ 45,000 $ - $ 24,000Amount received through June 30, 1994 127,836 - 33,612Amount received through June 30, 1995 44,027 - 14,676Amount received through June 30, 1996 108,201 - 36,067Bad debt charge off for the year endedJune 30, 1996 (3,005) - (1,002)Amount received through June 30, 1997 10,268 - 3,423Recapitalized from earnings for the yearended June 30, 1997 3,005 - 1,002Amount received through June 30, 1998 159,668 40,000 13,222$ 495,000 $ 40,000 $ 125,000
Title: Non-monetary Assistance Accounting Policies: The accompanying schedule of federal awards is prepared on the modified accrual basis of accounting. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The City has elected to use the de minimis 10% cost rate for certain grants. Non-monetary assistance is reported in the Schedule of Federal Awards at the fair market value of the food commodities.
Title: Subgrantees Accounting Policies: The accompanying schedule of federal awards is prepared on the modified accrual basis of accounting. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The City has elected to use the de minimis 10% cost rate for certain grants. The federal expenditures for the Community Development Block Grant, the Home Investment Trust, and the WorkforceInvestment Act Cluster programs include grants to subrecipients as follows:Subrecipient CommunityDevelopmentBlock GrantHOMEInvestmentPartnershipsProgramWorkforceInvestment ActClusterCoronavirus Relief Supplement $ 125,294 $ - $ -Habitat for Humanity - 235,904 -Lynchburg Community Action Group - - -Lynchburg Redevelopment & Housing Authority 78,521 - -Region 2000 Local Government Council - - 1,399,711Miriams House 64,622 - -Blue Ridge Mountains Council Boy Scouts 17,676 - -Rush Homes - 156,773 -$ 286,113 $ 392,677 $ 1,399,711
Title: Program Income Accounting Policies: The accompanying schedule of federal awards is prepared on the modified accrual basis of accounting. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The City has elected to use the de minimis 10% cost rate for certain grants. The City did not receive any program income during FY2022 for the Community Development Block grant.
Title: Virginia Revolving Loan Fund (ALN 66.458) Accounting Policies: The accompanying schedule of federal awards is prepared on the modified accrual basis of accounting. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The City has elected to use the de minimis 10% cost rate for certain grants. As of June 30, 2022, the City had an outstanding balance through the Virginia Revolving Loan Fund in the amount of $29,600,000 which includes federal funded loans. Expenditures associated with federally funded loans in FY 2022 totaled $1,387,286.

Finding Details

2022-001: Controls over Benefit Approval - Supplemental Nutrition Assistance Program ? AL# 10.651 Condition: During our review of eligibility, we noted that one individual?s income was not reviewed resulting in additional benefits until the error was identified. Criteria: All support for individual?s income should be reviewed to ensure benefits are accurate. Cause: The case worker entered the number incorrectly and it was not reviewed. Effect: Individual was paid SNAP benefits for four months that they were not eligible for. Questioned Cost Amount: An overpayment of $1,743. Perspective Information: One out of twenty-five tested. Recommendation: We recommend that all inputs are reviewed by supervisors to ensure calculations are correct. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and will apply additional oversight.
2022-001: Controls over Benefit Approval - Supplemental Nutrition Assistance Program ? AL# 10.651 Condition: During our review of eligibility, we noted that one individual?s income was not reviewed resulting in additional benefits until the error was identified. Criteria: All support for individual?s income should be reviewed to ensure benefits are accurate. Cause: The case worker entered the number incorrectly and it was not reviewed. Effect: Individual was paid SNAP benefits for four months that they were not eligible for. Questioned Cost Amount: An overpayment of $1,743. Perspective Information: One out of twenty-five tested. Recommendation: We recommend that all inputs are reviewed by supervisors to ensure calculations are correct. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and will apply additional oversight.