FAC Explorer

Audit 54638

FY End
2022-06-30
Total Expended
$174.05M
Findings
2
Programs
40
Organization: The City of Oklahoma City (OK)
Year: 2022 Accepted: 2023-03-15
Auditor: Allen Gibbs & Houlik L C

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
57931 2022-003 Significant Deficiency - AB
634373 2022-003 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
14.248 Community Development Block Grants_section 108 Loan Guarantees $18.83M - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $12.57M Yes 0
21.019 Coronavirus Relief Fund $11.29M - 0
20.507 Federal Transit_formula Grants $7.06M Yes 0
21.023 Emergency Rental Assistance Program $5.95M Yes 0
59.075 Shuttered Venue Operators Grant Program $5.69M Yes 0
14.218 Community Development Block Grants/entitlement Grants $3.47M - 0
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $2.62M - 0
66.468 Capitalization Grants for Drinking Water State Revolving Funds $621,930 - 0
14.241 Housing Opportunities for Persons with Aids $411,565 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $349,744 - 0
14.231 Emergency Solutions Grant Program $327,142 Yes 0
16.922 Equitable Sharing Program $288,406 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $261,902 - 0
97.U01 Law Enforcement Officer Reimbursement Agreement Program $241,200 - 0
14.267 Continuum of Care Program $214,156 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $204,954 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $140,401 Yes 0
20.600 State and Community Highway Safety $97,978 - 0
16.320 Services for Trafficking Victims $95,319 - 0
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $84,377 Yes 0
20.205 Highway Planning and Construction $84,000 - 0
20.616 National Priority Safety Programs $78,828 - 0
16.575 Crime Victim Assistance $72,401 - 0
14.239 Home Investment Partnerships Program $64,641 - 0
16.710 Public Safety Partnership and Community Policing Grants $57,958 - 0
20.106 Airport Improvement Program $57,000 Yes 0
97.029 Flood Mitigation Assistance $42,140 - 0
93.575 Child Care and Development Block Grant $39,000 - 0
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $37,875 - 0
15.904 Historic Preservation Fund Grants-in-Aid $35,200 - 0
66.458 Capitalization Grants for Clean Water State Revolving Funds $19,243 - 0
16.741 Dna Backlog Reduction Program $17,953 - 0
97.073 State Homeland Security Program (shsp) $9,693 - 0
20.525 State of Good Repair Grants Program $8,000 Yes 0
14.276 Youth Homelessness Demonstration Program $7,337 - 0
14.269 Hurricane Sandy Community Development Block Grant Disaster Recovery Grants (cdbg-Dr) $4,000 - 0
45.310 Grants to States $1,040 - 0
97.042 Emergency Management Performance Grants $800 - 0
45.129 Promotion of the Humanities_federal/state Partnership $584 - 0

Contacts

Name Title Type
D3MUME8J5T25 Alex Fedak Auditee
4052972703 Tara Laughlin Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Expenditures in the Schedule are recognized, as applicable, either as the cost 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. The accompanying Schedule is presenting using the following methods:1.For the Citys governmental funds, the Oklahoma City Zoological Trust (OCZT) and the Central Oklahoma Transportation and Parking Authority (COTPA), expenditures of federal funds in the Schedule are reported on the modified accrual basis of accounting.2.For the Oklahoma City Airport Trust (OCAT) and the Oklahoma City Water Utilities Trust (OCWUT), expenditures of federal funds in the Schedule are reported using the cash basis of accounting.3.For the year ended June 30, 2022, expenditures awarded from the Federal Emergency Management Agency (FEMA), under Assistance Listing Number 97.036, must be presented on the schedule of expenditures of federal awards (SEFA) when; 1) FEMA has approved the Citys Project Worksheet (PW) and 2) the City has incurred the eligible expenditures. Federal awards expended in years subsequent to the fiscal year in which the PW is approved are to be recorded on the Citys SEFA in those subsequent years. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10-percent de minimis cost rate allowed under Section 200.414(f) of the Uniform Guidance. COMMUNITY DEVELOPMENT BLOCK GRANTS_SECTION 108 LOAN GUARANTEES (14.248) - Balances outstanding at the end of the audit period were 15865000. BROWNFIELDS ASSESSMENT AND CLEANUP COOPERATIVE AGREEMENTS (66.818) - Balances outstanding at the end of the audit period were 2292423. See the notes to the SEFA for table/chart.
Title: Organization Accounting Policies: Expenditures in the Schedule are recognized, as applicable, either as the cost 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. The accompanying Schedule is presenting using the following methods:1.For the Citys governmental funds, the Oklahoma City Zoological Trust (OCZT) and the Central Oklahoma Transportation and Parking Authority (COTPA), expenditures of federal funds in the Schedule are reported on the modified accrual basis of accounting.2.For the Oklahoma City Airport Trust (OCAT) and the Oklahoma City Water Utilities Trust (OCWUT), expenditures of federal funds in the Schedule are reported using the cash basis of accounting.3.For the year ended June 30, 2022, expenditures awarded from the Federal Emergency Management Agency (FEMA), under Assistance Listing Number 97.036, must be presented on the schedule of expenditures of federal awards (SEFA) when; 1) FEMA has approved the Citys Project Worksheet (PW) and 2) the City has incurred the eligible expenditures. Federal awards expended in years subsequent to the fiscal year in which the PW is approved are to be recorded on the Citys SEFA in those subsequent years. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10-percent de minimis cost rate allowed under Section 200.414(f) of the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the City of Oklahoma City, Oklahoma (City) under programs of the federal government for the year ended June 30, 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.
Title: Federal Assistance Listing Numbers Accounting Policies: Expenditures in the Schedule are recognized, as applicable, either as the cost 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. The accompanying Schedule is presenting using the following methods:1.For the Citys governmental funds, the Oklahoma City Zoological Trust (OCZT) and the Central Oklahoma Transportation and Parking Authority (COTPA), expenditures of federal funds in the Schedule are reported on the modified accrual basis of accounting.2.For the Oklahoma City Airport Trust (OCAT) and the Oklahoma City Water Utilities Trust (OCWUT), expenditures of federal funds in the Schedule are reported using the cash basis of accounting.3.For the year ended June 30, 2022, expenditures awarded from the Federal Emergency Management Agency (FEMA), under Assistance Listing Number 97.036, must be presented on the schedule of expenditures of federal awards (SEFA) when; 1) FEMA has approved the Citys Project Worksheet (PW) and 2) the City has incurred the eligible expenditures. Federal awards expended in years subsequent to the fiscal year in which the PW is approved are to be recorded on the Citys SEFA in those subsequent years. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10-percent de minimis cost rate allowed under Section 200.414(f) of the Uniform Guidance. Federal assistance listing numbers or other identifying numbers listed on the Schedule were obtained from the respective grant/contract agreement.

Finding Details

Finding 2022-003
Finding 2022-003 (Significant Deficiency) AL# 97.036: Disaster Grants ? Public Assistance (Presidentially Declared Disasters), Passed Thru the Oklahoma Department of Emergency Management, U.S. Department of Homeland Security, Award # PA-06-OK-PW-00187, 2022 Condition: There were three instances in which an employee?s pay rate used in calculating payroll expense was the current pay rate and not the pay rate in effect at the time the work was performed. Criteria: 2 CFR 200.403(g) states that costs must be adequately documented. Questioned Costs: Unknown Context: The total amount of expenditures for this federal assistance listing number is $19,546,051 which consists of 7 different grants crossing over 3 different city departments. This error occurred in only one department and one grant which had payroll costs totaling $677,863. A portion of these costs used updated pay rates, instead of pay rates active at the time of service which caused some individual pay dates to be overcharged to the grant. The sample size was determined based upon guidelines provided by the AICPA which is not a statistically valid sample. Cause: Employees received pay increases between the time the service was performed and when costs were identified as being covered by the disaster grant. The pay rate used was the pay rate for those employees at the time the expenditures were identified. Effect: Not properly identifying the appropriate pay rates used in determining payroll expenses may cause the federal program to be overcharged. Recommendation: We recommend when identifying payroll expenditures to be charged to disaster grants that a second review is done to ensure pay rates used to determine payroll expenses are the pay rates in effect at the time the employee provided the service. Views of Responsible Officials (Unaudited): The Parks and Recreation Department will immediately implement a process where the Parks & Grounds Superintendent (or designee) will review employee pay information that administrative staff prepares for entry into the federal grant website ensuring that it is properly formatted and accurately reflects the pay at the time the work was performed. Also, a procedure will be added to the FEMA section of the City's Grants Manual to include a second review to verify that the pay rates being used to determine payroll expenses are the rates that were in effect at the time the service was provided.
Finding 2022-003
Finding 2022-003 (Significant Deficiency) AL# 97.036: Disaster Grants ? Public Assistance (Presidentially Declared Disasters), Passed Thru the Oklahoma Department of Emergency Management, U.S. Department of Homeland Security, Award # PA-06-OK-PW-00187, 2022 Condition: There were three instances in which an employee?s pay rate used in calculating payroll expense was the current pay rate and not the pay rate in effect at the time the work was performed. Criteria: 2 CFR 200.403(g) states that costs must be adequately documented. Questioned Costs: Unknown Context: The total amount of expenditures for this federal assistance listing number is $19,546,051 which consists of 7 different grants crossing over 3 different city departments. This error occurred in only one department and one grant which had payroll costs totaling $677,863. A portion of these costs used updated pay rates, instead of pay rates active at the time of service which caused some individual pay dates to be overcharged to the grant. The sample size was determined based upon guidelines provided by the AICPA which is not a statistically valid sample. Cause: Employees received pay increases between the time the service was performed and when costs were identified as being covered by the disaster grant. The pay rate used was the pay rate for those employees at the time the expenditures were identified. Effect: Not properly identifying the appropriate pay rates used in determining payroll expenses may cause the federal program to be overcharged. Recommendation: We recommend when identifying payroll expenditures to be charged to disaster grants that a second review is done to ensure pay rates used to determine payroll expenses are the pay rates in effect at the time the employee provided the service. Views of Responsible Officials (Unaudited): The Parks and Recreation Department will immediately implement a process where the Parks & Grounds Superintendent (or designee) will review employee pay information that administrative staff prepares for entry into the federal grant website ensuring that it is properly formatted and accurately reflects the pay at the time the work was performed. Also, a procedure will be added to the FEMA section of the City's Grants Manual to include a second review to verify that the pay rates being used to determine payroll expenses are the rates that were in effect at the time the service was provided.