FAC Explorer

Audit 8181

FY End
2023-06-30
Total Expended
$13.14M
Findings
6
Programs
12
Organization: City of Sparks (NV)
Year: 2023 Accepted: 2023-12-21
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6225 2023-002 Material Weakness - L
6226 2023-002 Material Weakness - L
6227 2023-003 Significant Deficiency Yes L
582667 2023-002 Material Weakness - L
582668 2023-002 Material Weakness - L
582669 2023-003 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
93.575 Child Care and Development Block Grant $435,510 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $309,367 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $248,489 - 0
16.710 Public Safety Partnership and Community Policing Grants $69,036 - 0
16.922 Equitable Sharing Program $25,678 - 0
97.044 Assistance to Firefighters Grant $24,963 - 0
95.001 High Intensity Drug Trafficking Areas Program $8,803 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $7,636 - 0
21.016 Equitable Sharing $6,983 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $3,919 - 0
20.600 State and Community Highway Safety $598 - 0
14.218 Community Development Block Grants/entitlement Grants $319 Yes 1

Contacts

Name Title Type
JC8PKJTFNM86 Jeff Cronk Auditee
7753532301 Kurt Schlicker Auditor
No contacts on file

Notes to SEFA

Title: Note A - Basis of Presentation Accounting Policies: Governmental fund types primarily account for the City's federal grant activity. Therefore, expenditures in the SEFA are recognized on the modified accrual basis - when they become a demand on current available financial resources. Federal financial assistance provided to a subrecipient is treated as an expenditure when it is paid to the subrecipient. The City's summary of significant accounting policies is presented in Note 1 in the City's basic financial statements. The City has not elected to use the 10% de minimus cost rate. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10% de minimus cost rate. This Schedule of Expenditures of Federal Awards (SEFA) includes the Federal grant activity of the City of Sparks, Nevada and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. The City of Sparks, Nevada received federal awards both directly from federal agencies and indirectly through pass-through entities.
Title: Note B - Significant Accounting Policies Accounting Policies: Governmental fund types primarily account for the City's federal grant activity. Therefore, expenditures in the SEFA are recognized on the modified accrual basis - when they become a demand on current available financial resources. Federal financial assistance provided to a subrecipient is treated as an expenditure when it is paid to the subrecipient. The City's summary of significant accounting policies is presented in Note 1 in the City's basic financial statements. The City has not elected to use the 10% de minimus cost rate. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10% de minimus cost rate. Governmental fund types primarily account for the City's federal grant activity. Therefore, expenditures in the SEFA are recognized on the modified accrual basis - when they become a demand on current available financial resources. Federal financial assistance provided to a subrecipient is treated as an expenditure when it is paid to the subrecipient. The City's summary of significant accounting policies is presented in Note 1 in the City's basic financial statements. The City has not elected to use the 10% de minimus cost rate.
Title: Note C - ARPA Sub-Awards From The City To Washoe County CARES Campus and Nevada Higher Learning System (UNR) Accounting Policies: Governmental fund types primarily account for the City's federal grant activity. Therefore, expenditures in the SEFA are recognized on the modified accrual basis - when they become a demand on current available financial resources. Federal financial assistance provided to a subrecipient is treated as an expenditure when it is paid to the subrecipient. The City's summary of significant accounting policies is presented in Note 1 in the City's basic financial statements. The City has not elected to use the 10% de minimus cost rate. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10% de minimus cost rate. Coronavirus State & Local Fiscal Recovery Funds sub-award payments from the City of Sparks to Washoe County for $704,408 and to the Nevada System of Higher Learning (UNR) for $61,723 (Research and Development Cluster) were recorded in the Sparks Grants and Donations Fund during the year ended June 30, 2022 on an accrual basis; however, they were not included in the year ended June 30, 2022 schedule as payment was not made during the year. They are both included in the year ended June 30, 2023 Schedule.
Title: Note D - ARPA Sub-Awards From The City To Nevada Higher Learning System (UNR) Accounting Policies: Governmental fund types primarily account for the City's federal grant activity. Therefore, expenditures in the SEFA are recognized on the modified accrual basis - when they become a demand on current available financial resources. Federal financial assistance provided to a subrecipient is treated as an expenditure when it is paid to the subrecipient. The City's summary of significant accounting policies is presented in Note 1 in the City's basic financial statements. The City has not elected to use the 10% de minimus cost rate. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10% de minimus cost rate. Coronavirus State & Local Fiscal Recovery Funds sub-award payments from the City of Sparks to the Nevada System of Higher Learning (UNR) for $73,498 were recorded in the Sparks Grants and Donations Fund during the year ended June 30, 2023 on an accrual basis; however, they were not included in the June 30, 2023 Schedule as payment was not made during the year.
Title: Note E - CDBG Sub-Awards From The City To Eddy House, Food Bank of Northern Nevada, and Silver State Fair Housing Accounting Policies: Governmental fund types primarily account for the City's federal grant activity. Therefore, expenditures in the SEFA are recognized on the modified accrual basis - when they become a demand on current available financial resources. Federal financial assistance provided to a subrecipient is treated as an expenditure when it is paid to the subrecipient. The City's summary of significant accounting policies is presented in Note 1 in the City's basic financial statements. The City has not elected to use the 10% de minimus cost rate. De Minimis Rate Used: N Rate Explanation: The City has not elected to use the 10% de minimus cost rate. Community Development Block Grant Fund sub-award payments from the City of Sparks to the Eddy House for $6,641, Food Bank of Northern Nevada for $231,252, and Silver State Fair Housing for $2,825 were recorded in the Community Development Block Grant Fund during the year ended June 30, 2023 on an accrual basis; however, they were not included in the June 30, 2023 Schedule as payment was not made during the year.

Finding Details

Finding 2023-002
2023‐002: U.S. Department of Housing and Urban Development CDBG – Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grant, Assistance Listing #14.218 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under Assistance Listing 14.218 on the Schedule of Expenditures of Federal Awards. Criteria: The Federal Funding Accountability and Transparency Act (FFATA) requires direct recipients of certain federal awards to report subaward information by the end of the month following the month in which the prime awardee obligates a subgrant award equal to $30,000. Condition: Required subaward information was not reported in the FFATA Subaward Reporting System (FSRS). Cause: The City of Sparks did not have internal controls to ensure subaward information was submitted in accordance with the FFATA. Effect: Subaward obligations were not reported in the FSRS and therefore not included on the FFATA’s website for public information disclosure. Questioned Costs: None Context/Sampling: The entire population of one subaward, entered into during the year was subject to FFATA reporting requirements and selected for testing. The quantity and subaward obligation errors were noted as follows: Subawards Obligations Total Tested 1 $231,252 Not Reported 1 $231,252 Not Timely 1 $231,252 Obligation Incorrect 1 $231,252 Missing Key Elements 1 $231,252 Repeat Finding from Prior Year: No Recommendation: Views of Responsible Officials: We recommend the City implement internal controls to ensure subaward information is submitted in accordance with the FFATA. The City of Sparks agrees with this finding.
Finding 2023-002
2023‐002: U.S. Department of Housing and Urban Development CDBG – Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grant, Assistance Listing #14.218 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under Assistance Listing 14.218 on the Schedule of Expenditures of Federal Awards. Criteria: The Federal Funding Accountability and Transparency Act (FFATA) requires direct recipients of certain federal awards to report subaward information by the end of the month following the month in which the prime awardee obligates a subgrant award equal to $30,000. Condition: Required subaward information was not reported in the FFATA Subaward Reporting System (FSRS). Cause: The City of Sparks did not have internal controls to ensure subaward information was submitted in accordance with the FFATA. Effect: Subaward obligations were not reported in the FSRS and therefore not included on the FFATA’s website for public information disclosure. Questioned Costs: None Context/Sampling: The entire population of one subaward, entered into during the year was subject to FFATA reporting requirements and selected for testing. The quantity and subaward obligation errors were noted as follows: Subawards Obligations Total Tested 1 $231,252 Not Reported 1 $231,252 Not Timely 1 $231,252 Obligation Incorrect 1 $231,252 Missing Key Elements 1 $231,252 Repeat Finding from Prior Year: No Recommendation: Views of Responsible Officials: We recommend the City implement internal controls to ensure subaward information is submitted in accordance with the FFATA. The City of Sparks agrees with this finding.
Finding 2023-003
2023‐003: U.S. Department of the Treasury COVID‐19: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027 Reporting Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under Assistance Listing 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: The OMB Compliance Supplement requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. The City of Sparks (the City) must submit quarterly Project and Expenditure Reports that contain costs incurred during the covered period. Critical information includes, in part: o Obligations and Expenditures § Current period obligation § Cumulative obligation § Current period expenditure § Cumulative expenditure Condition: Current obligation information was not reported in accordance with governing requirements. Cause: The City of Sparks did not have adequate internal controls to ensure Project and Expenditure Reports were prepared in accordance with governing requirements. Effect: Inaccurate information was reported to the federal awarding agency. Questioned Costs: None Context/Sampling: A nonstatistical sample of two out of a population of four Project and Expenditure Reports submitted during the year was selected for testing. The City reported current obligations for the amount the City recognized as a payable, rather than the obligations (i.e., contracts) that were entered into during the reporting period. The impact is as follows: Period Ended December 31, 2022 ShotSpotter: Current Period Obligation -Originally Reported- $290,000; Actual-$850,000 Wastewater Surveillance: Current Period Obligation -Originally Reported-$102,098; Actual- $‐ Period Ended March 31, 2023 ShotSpotter: Current Period Obligation-Originally Reported- $290,000; Actual- $‐ Wastewater Surveillance: Current Period Obligation-Originally Reported- $223,149; Actual- $‐ Prior Year: Yes – repeat finding 2022‐003. Recommendation: We recommend the City enhance internal controls to ensure Project and Expenditure Reports are prepared in accordance with governing requirements. Views of Responsible Officials: The City of Sparks agrees with this finding.
Finding 2023-002
2023‐002: U.S. Department of Housing and Urban Development CDBG – Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grant, Assistance Listing #14.218 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under Assistance Listing 14.218 on the Schedule of Expenditures of Federal Awards. Criteria: The Federal Funding Accountability and Transparency Act (FFATA) requires direct recipients of certain federal awards to report subaward information by the end of the month following the month in which the prime awardee obligates a subgrant award equal to $30,000. Condition: Required subaward information was not reported in the FFATA Subaward Reporting System (FSRS). Cause: The City of Sparks did not have internal controls to ensure subaward information was submitted in accordance with the FFATA. Effect: Subaward obligations were not reported in the FSRS and therefore not included on the FFATA’s website for public information disclosure. Questioned Costs: None Context/Sampling: The entire population of one subaward, entered into during the year was subject to FFATA reporting requirements and selected for testing. The quantity and subaward obligation errors were noted as follows: Subawards Obligations Total Tested 1 $231,252 Not Reported 1 $231,252 Not Timely 1 $231,252 Obligation Incorrect 1 $231,252 Missing Key Elements 1 $231,252 Repeat Finding from Prior Year: No Recommendation: Views of Responsible Officials: We recommend the City implement internal controls to ensure subaward information is submitted in accordance with the FFATA. The City of Sparks agrees with this finding.
Finding 2023-002
2023‐002: U.S. Department of Housing and Urban Development CDBG – Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grant, Assistance Listing #14.218 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under Assistance Listing 14.218 on the Schedule of Expenditures of Federal Awards. Criteria: The Federal Funding Accountability and Transparency Act (FFATA) requires direct recipients of certain federal awards to report subaward information by the end of the month following the month in which the prime awardee obligates a subgrant award equal to $30,000. Condition: Required subaward information was not reported in the FFATA Subaward Reporting System (FSRS). Cause: The City of Sparks did not have internal controls to ensure subaward information was submitted in accordance with the FFATA. Effect: Subaward obligations were not reported in the FSRS and therefore not included on the FFATA’s website for public information disclosure. Questioned Costs: None Context/Sampling: The entire population of one subaward, entered into during the year was subject to FFATA reporting requirements and selected for testing. The quantity and subaward obligation errors were noted as follows: Subawards Obligations Total Tested 1 $231,252 Not Reported 1 $231,252 Not Timely 1 $231,252 Obligation Incorrect 1 $231,252 Missing Key Elements 1 $231,252 Repeat Finding from Prior Year: No Recommendation: Views of Responsible Officials: We recommend the City implement internal controls to ensure subaward information is submitted in accordance with the FFATA. The City of Sparks agrees with this finding.
Finding 2023-003
2023‐003: U.S. Department of the Treasury COVID‐19: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027 Reporting Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under Assistance Listing 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: The OMB Compliance Supplement requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. The City of Sparks (the City) must submit quarterly Project and Expenditure Reports that contain costs incurred during the covered period. Critical information includes, in part: o Obligations and Expenditures § Current period obligation § Cumulative obligation § Current period expenditure § Cumulative expenditure Condition: Current obligation information was not reported in accordance with governing requirements. Cause: The City of Sparks did not have adequate internal controls to ensure Project and Expenditure Reports were prepared in accordance with governing requirements. Effect: Inaccurate information was reported to the federal awarding agency. Questioned Costs: None Context/Sampling: A nonstatistical sample of two out of a population of four Project and Expenditure Reports submitted during the year was selected for testing. The City reported current obligations for the amount the City recognized as a payable, rather than the obligations (i.e., contracts) that were entered into during the reporting period. The impact is as follows: Period Ended December 31, 2022 ShotSpotter: Current Period Obligation -Originally Reported- $290,000; Actual-$850,000 Wastewater Surveillance: Current Period Obligation -Originally Reported-$102,098; Actual- $‐ Period Ended March 31, 2023 ShotSpotter: Current Period Obligation-Originally Reported- $290,000; Actual- $‐ Wastewater Surveillance: Current Period Obligation-Originally Reported- $223,149; Actual- $‐ Prior Year: Yes – repeat finding 2022‐003. Recommendation: We recommend the City enhance internal controls to ensure Project and Expenditure Reports are prepared in accordance with governing requirements. Views of Responsible Officials: The City of Sparks agrees with this finding.