Corrective Action Plans

The Authority recognize the importance of maintaining accurate and complete property records for fixed assets purchased with federal funding. A complete fixed asset inventory was conducted in 2023 and is now performed annually.

Management concurs with the auditor’s finding and will implement the auditor’s recommendations. Persons Responsible Sarah Royster, CEO and Aaron Royster, CFO Date of Implementation of Recommendation September 2024

Corrective Action Plan: A SOP must be carried out to implement internal controls to maintain a property report inventory. Contact Person: Zorimar Torres Mercado, Administrator Director Anticipated Completion Date: No later than December 31, 2023

We will work the federal government to obtain retroactive approval of the bus purchases as of July 1, 2021. Additionally, going forward any equipment purchases will be reviewed to ensure compliance with all applicable federal equipment pre and post procurement requirements for inventory and maintenance of equipment.

Federal Agency: U.S. Department of Agriculture CFDA Program: 10.557 Special Supplemental Nutrition Program for Women, Infants and Children (WIC) Award Number: 7NM700NM5 Area: Equipment and Real Property Management Questioned Costs: $-0- Contact Persons: Perlie Santos, Chief Financial Officer; Marie Attao, WIC Program Manager; Cora Ada, Procurement Director Corrective Action: The discrepancy noted was also noted in 2018. The vehicle was delivered in FY 2018 (September), however the invoice was processed in FY 2019 (October), hence the manual Capital Assets listing was only updated. Proposed Completion Date: On-Going

In September 2021, the Authority hired fixed assets manager and two staffs who are responsible for monitoring the fixed assets. The fixed assets team will conduct fixed assets physical count before the end of fiscal year 2024. The result of the physical count will be reconciled to the fixed asset records. Also, a new fixed asset module is set to be implemented in the Fiscal Year 2025.

Recommendation: We recommend the City maintain complete property records, which include a description, serial number or other identification number, source, title holder, acquisition date, cost, percentage of Federal participation in the cost, location, use and condition, and any ultimate disposition data including the date of disposal and sale price of the property. In addition, we recommend the City perform a physical inspection of property acquired with federal funds at least once every two years. City's Response: The City concurs with the recommendation Corrective Action Plan: The City Controller's department will establish procedures over the maintenance of property and equipment records and the Grants Division will create an equipment database and incorporate the City Controller's Office procedures into a new CDBG procedures manual that is created based on the system of internal controls required by OMB's Uniform Guidance (2 CFR 200). These records will include a description of the property, a serial number or other identification number, the source of property, who holds title, the acquisition date, cost of the property, percentage of Federal participation in the cost of the property, the location, use and condition of the property, any ultimate disposition data including the date of disposal and sale price of the property, purchase policies for physical equipment purchased with federal funds and creation of an annual non-physical inventory process and a bi-annual comprehensive physical inventory. In the meantime, the City will take steps to address the specific findings noted above. Planned Implementation Date: June 30, 2021 Responsible Person: Aubrey Relf, City Grants Manager and Rafaela King, Controller