Corrective Action Plans

Recommendation: We recommend the City maintain a complete listing of outstanding loans and prepare and regularly use a master CDBG-related loan repayment schedule detailing all loans issued to monitor and capture loan repayments that would prompt the recording of program income as repayments are received. In addition, loans receivable should be reconciled to the general ledger on a regular periodic basis. This addresses COSO's Control Activities, Principle 10: selects & develops control activities and Principle 12: deploys control activities through policies and procedures Management Response and Corrective Action Plan City's Response: The City concurs with the recommendation Corrective Action Plan: The Controller's office will work with the Grants Division to implement tracking procedures, recording procedures and processes, creation of a centralized database that clearly identifies program income including loan repayments and provide training to staff on how to track, record and report program income. This system will be communicated to all staff members within Grants Division, City Controller's Office and Treasury Department to ensure all parties have access to the database, policies and procedures so they are able to properly code each payment in order to monitor the payment type and record the payment in the correct fiscal year. The Grants Division will create a CDBG procedures manual that documents policies and procedures designed to serve as the system of internal controls required by OMB's Uniform Guidance (2 CFR 200). In the meantime, the Grants and City Controller's departments will take steps to address the specific finding noted above. Planned Implementation Date: June 30, 2021 Responsible Person: Aubrey Relf, Grants Manager and Rafaela King, Controller

Recommendation: We recommend the City strengthen their procedures in relation to identifying, determining, assessing, and recording program income. The City should have procedures in place to accurately identify program income when are received and to ensure that program income is appropriately recorded in the CDBG fund as such and into IDIS. This addresses COSO's Control Activities, Principle 10: selects & develops control activities and Information & Communication, Principle 15: communicates externally. Management Response and Corrective Action Plan Corrective Action Plan: The Controller's office will work with the Grants Division to implement tracking procedures, recording procedures and processes, creation of a centralized database that clearly identifies program income including loan repayments and provide training to staff on how to track, record and report program income. This system will be communicated to all staff members within Grants Division, City Controller's Office and Treasury Department to ensure all parties have access to the database, policies and procedures so they are able to properly code each payment in order to monitor the payment type and record the payment in the correct fiscal year. The City will create a procedures manual that documents policies and procedures designed to serve as the system of internal controls required by OMB's Uniform Guidance (2 CFR 200). In the meantime, the Grants and City Controller's departments will take steps to address the specific finding noted above. Planned Implementation Date: June 30, 2021 Responsible Person: Aubrey Relf, Grants Manager and Rafaela King, Controller