Finding 1073854 (2023-005)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2023
Accepted
2024-09-20
Audit: 320159
Organization: City of Porterville (CA)

AI Summary

  • Core Issue: Reimbursement requests lacked review by a supervisory-level person, risking undetected errors.
  • Impacted Requirements: Best practices dictate that someone other than the preparer should verify the accuracy and completeness of requests.
  • Recommended Follow-Up: Implement a mandatory review process where a designated Finance staff member reviews requests before final approval by a supervisor.

Finding Text

2023 – 005: Cash Management Federal Agency: U.S. Department of Homeland Security Federal Program Name: Staffing for Adequate Fire and Emergency Response (SAFER) Assistance Listing Number: 97.083 Federal Award Identification Number and Year: EMW-2020-FF-01374 - 2020 Award Period: February 27, 2022 to February 26, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: As a best practice, a supervisory-level person, other than the preparer of a reimbursement request, should review the request to ensure accuracy and completeness of data and information in the request. Condition: Reimbursement requests were not reviewed by anyone other than the preparer of the requests. Questioned Costs: None Context: 4 of 4 reimbursement requests tested were submitted without someone other than the preparer reviewing them. Cause: Controls for review by someone other than the preparer had not yet been implemented. Effect: Errors in reimbursement requests could go undetected. Repeat Finding: No Recommendation: We recommend that reimbursement requests be reviewed by a supervisory-level person who is not the preparer of the requests. Views of Responsible Officials: We acknowledge the audit finding regarding the absence of supervisory-level review for reimbursement requests to grantors. We have established a mandatory review process where all reimbursement requests must be thoroughly reviewed by a designated Finance staff member who did not prepare the request. A final approver (i.e. supervisor or director) will authorize the reimbursement request before submission to the grantor. We have communicated the importance of this review process to our team to ensure compliance, completeness and accuracy. We will monitor the process to prevent recurrence.

Categories

Cash Management Significant Deficiency

Other Findings in this Audit

  • 497408 2023-003
    Significant Deficiency
  • 497409 2023-003
    Significant Deficiency
  • 497410 2023-004
    Significant Deficiency
  • 497411 2023-004
    Significant Deficiency
  • 497412 2023-005
    Significant Deficiency
  • 497413 2023-006
    Significant Deficiency
  • 1073850 2023-003
    Significant Deficiency
  • 1073851 2023-003
    Significant Deficiency
  • 1073852 2023-004
    Significant Deficiency
  • 1073853 2023-004
    Significant Deficiency
  • 1073855 2023-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.507 Federal Transit Formula Grants $1.22M
97.083 Staffing for Adequate Fire and Emergency Response (safer) $377,628
10.703 Cooperative Fire Protection Agreement $81,330
14.218 Community Development Block Grants/entitlement Grants $79,239
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $77,570
20.600 State and Community Highway Safety $47,842
16.738 Edward Byrne Memorial Justice Assistance Grant Program $33,001
20.106 Airport Improvement Program, Covid-19 Airports Programs, and Infrastructure Investment and Jobs Act Programs $32,000
14.267 Continuum of Care Program $31,568
14.416 Education and Outreach Initiatives $13,359
21.027 Coronavirus State and Local Fiscal Recovery Funds $12,050
20.205 Highway Planning and Construction $1,920