FAC Explorer

Audit 46466

FY End
2022-12-31
Total Expended
$89.25M
Findings
6
Programs
26
Organization: City of Toledo (OH)
Year: 2022 Accepted: 2023-09-26
Auditor: Clark Schaefer Hackett

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
46423 2022-002 Material Weakness - L
46424 2022-003 Significant Deficiency - L
46425 2022-003 Significant Deficiency - L
622865 2022-002 Material Weakness - L
622866 2022-003 Significant Deficiency - L
622867 2022-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $41.50M Yes 0
21.023 Emergency Rental Assistance Program $21.08M Yes 1
14.218 Community Development Block Grants/entitlement Grants $7.62M Yes 1
20.205 Highway Planning and Construction $6.19M Yes 0
66.001 Air Pollution Control Program Support $928,301 - 0
97.067 Homeland Security Grant Program $853,000 - 0
14.231 Emergency Solutions Grant Program $698,416 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $508,069 - 0
16.922 Equitable Sharing Program $504,451 - 0
97.044 Assistance to Firefighters Grant $356,932 - 0
66.468 Capitalization Grants for Drinking Water State Revolving Funds $83,343 - 0
66.458 Capitalization Grants for Clean Water State Revolving Funds $81,779 - 0
66.469 Great Lakes Program $66,574 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $65,297 - 0
66.312 State Environmental Justice Cooperative Agreement Program $59,280 - 0
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $58,296 - 0
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $49,773 - 0
20.600 State and Community Highway Safety $39,042 - 0
16.609 Project Safe Neighborhoods $36,934 - 0
66.460 Nonpoint Source Implementation Grants $36,799 - 0
16.588 Violence Against Women Formula Grants $35,208 - 0
20.616 National Priority Safety Programs $27,561 - 0
14.239 Home Investment Partnerships Program $23,578 - 0
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing $9,568 - 0
11.463 Habitat Conservation $2,555 - 0
93.279 Drug Abuse and Addiction Research Programs $1,435 - 0

Contacts

Name Title Type
N669DP1XJCH6 Melanie Campbell Auditee
4192451647 Brian Mosier Auditor
No contacts on file

Notes to SEFA

Title: Matching Requirements Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Toledo and is presented on the modified accrual basis of accounting, which is described in Note 1 to the City of Toledo, Ohio's (the City) Annual Comprehensive Financial Report. Such expenditures are recognized following the costs principles contained in OMB Circular A-87, Cost principles for state, local, and Indian Tribal Governments or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Certain Federal programs require the City to contribute non-Federal funds (matching funds) to support the Federally-funded programs. The City has met its matching requirements. The schedule does not include the expenditure of non-Federal matching funds.
Title: Home investment Partnership program grant programs with revolving loan bal Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Toledo and is presented on the modified accrual basis of accounting, which is described in Note 1 to the City of Toledo, Ohio's (the City) Annual Comprehensive Financial Report. Such expenditures are recognized following the costs principles contained in OMB Circular A-87, Cost principles for state, local, and Indian Tribal Governments or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The current cash balance of the City's local program income account as of December 31, 2022 is $13,800,980.
Title: Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Toledo and is presented on the modified accrual basis of accounting, which is described in Note 1 to the City of Toledo, Ohio's (the City) Annual Comprehensive Financial Report. Such expenditures are recognized following the costs principles contained in OMB Circular A-87, Cost principles for state, local, and Indian Tribal Governments or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The City passes certain federal awards received from the U.S. Department of Housing and Urban Development to other governments or not-for-profit agencies (subrecipients). As Note B describes, the City reports expenditures of Federal awards to subrecipients on a modified accrual basis. As a direct recipient, the City has certain compliance responsibilities, such as monitoring its subrecipients to help assure they use these sub awards as authorized by laws, regulations, and the provisions of contacts or grant agreements, and that subrecipients achieve the awards performance goals.
Title: Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Toledo and is presented on the modified accrual basis of accounting, which is described in Note 1 to the City of Toledo, Ohio's (the City) Annual Comprehensive Financial Report. Such expenditures are recognized following the costs principles contained in OMB Circular A-87, Cost principles for state, local, and Indian Tribal Governments or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of Toledo, Ohio (the City) under programs of the federal government for the year ended December 31, 2022. 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). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City.

Finding Details

Finding 2022-002
Criteria: The U.S. Department of Treasury established reporting requirements for local governments. These requirements established methods for reporting Emergency Rental Assistance (ERA) expenditures to the U.S. Department of Treasury. Condition: We performed tests to determine if the City was in compliance with reporting requirements for the federal program. The City is required to make both quarterly and monthly reporting related to the program. Context: The following instances of noncompliance were noted during our testing of the ERA program reporting: - 1 out of 4 quarterly reports tested reported cumulative expenditures reported that did not agree to City records. - 3 out of 4 quarterly reports tested reported current quarter obligations that did not agree to City records. - 1 out of 4 quarterly reports tested reported current quarter expenditures that did not agree to City records. - 3 out of 4 monthly reports tested were not filed timely. - 3 out of 4 monthly reports tested reported number of unique households that did not agree to City records. - 3 out of 4 monthly reports tested reported total expenditure amounts that did not agree to City records. Cause: Lack of sufficient internal controls over the reporting requirements of the ERA program. Effect: The City was not in compliance with reporting requirements in 2022. Recommendation: We recommend the City enhance its internal controls over the reporting requirements of the ERA program by reviewing the U.S. Department of Treasury?s federal guidance for reporting.
Finding 2022-003
Criteria: The U.S. Department of Housing and Urban Development established reporting requirements for local governments. These requirements established methods for reporting Federal Funding Accountability and Transparency Act information. Condition: We performed tests to determine if the City was in compliance with reporting requirements for the federal program. The City is required to report specific data about subrecipients and subawards in the sub-award reporting system. Context: The City did not report any subrecipient (subaward) information during 2022. Cause: There was a misunderstanding by City program management. Program management did not file FFATA reports because HUD did not conduct monitoring of this requirement and program management thought this meant the requirement was not applicable to them. Effect: The City was not in compliance with reporting requirements in 2022. Recommendation: We recommend the City enhance its internal controls over the reporting requirements of the CDBG program by reviewing the U.S. Department of Housing and Urban Development?s federal guidance for reporting.
Finding 2022-003
Criteria: The U.S. Department of Housing and Urban Development established reporting requirements for local governments. These requirements established methods for reporting Federal Funding Accountability and Transparency Act information. Condition: We performed tests to determine if the City was in compliance with reporting requirements for the federal program. The City is required to report specific data about subrecipients and subawards in the sub-award reporting system. Context: The City did not report any subrecipient (subaward) information during 2022. Cause: There was a misunderstanding by City program management. Program management did not file FFATA reports because HUD did not conduct monitoring of this requirement and program management thought this meant the requirement was not applicable to them. Effect: The City was not in compliance with reporting requirements in 2022. Recommendation: We recommend the City enhance its internal controls over the reporting requirements of the CDBG program by reviewing the U.S. Department of Housing and Urban Development?s federal guidance for reporting.
Finding 2022-002
Criteria: The U.S. Department of Treasury established reporting requirements for local governments. These requirements established methods for reporting Emergency Rental Assistance (ERA) expenditures to the U.S. Department of Treasury. Condition: We performed tests to determine if the City was in compliance with reporting requirements for the federal program. The City is required to make both quarterly and monthly reporting related to the program. Context: The following instances of noncompliance were noted during our testing of the ERA program reporting: - 1 out of 4 quarterly reports tested reported cumulative expenditures reported that did not agree to City records. - 3 out of 4 quarterly reports tested reported current quarter obligations that did not agree to City records. - 1 out of 4 quarterly reports tested reported current quarter expenditures that did not agree to City records. - 3 out of 4 monthly reports tested were not filed timely. - 3 out of 4 monthly reports tested reported number of unique households that did not agree to City records. - 3 out of 4 monthly reports tested reported total expenditure amounts that did not agree to City records. Cause: Lack of sufficient internal controls over the reporting requirements of the ERA program. Effect: The City was not in compliance with reporting requirements in 2022. Recommendation: We recommend the City enhance its internal controls over the reporting requirements of the ERA program by reviewing the U.S. Department of Treasury?s federal guidance for reporting.
Finding 2022-003
Criteria: The U.S. Department of Housing and Urban Development established reporting requirements for local governments. These requirements established methods for reporting Federal Funding Accountability and Transparency Act information. Condition: We performed tests to determine if the City was in compliance with reporting requirements for the federal program. The City is required to report specific data about subrecipients and subawards in the sub-award reporting system. Context: The City did not report any subrecipient (subaward) information during 2022. Cause: There was a misunderstanding by City program management. Program management did not file FFATA reports because HUD did not conduct monitoring of this requirement and program management thought this meant the requirement was not applicable to them. Effect: The City was not in compliance with reporting requirements in 2022. Recommendation: We recommend the City enhance its internal controls over the reporting requirements of the CDBG program by reviewing the U.S. Department of Housing and Urban Development?s federal guidance for reporting.
Finding 2022-003
Criteria: The U.S. Department of Housing and Urban Development established reporting requirements for local governments. These requirements established methods for reporting Federal Funding Accountability and Transparency Act information. Condition: We performed tests to determine if the City was in compliance with reporting requirements for the federal program. The City is required to report specific data about subrecipients and subawards in the sub-award reporting system. Context: The City did not report any subrecipient (subaward) information during 2022. Cause: There was a misunderstanding by City program management. Program management did not file FFATA reports because HUD did not conduct monitoring of this requirement and program management thought this meant the requirement was not applicable to them. Effect: The City was not in compliance with reporting requirements in 2022. Recommendation: We recommend the City enhance its internal controls over the reporting requirements of the CDBG program by reviewing the U.S. Department of Housing and Urban Development?s federal guidance for reporting.