Finding 1097451 (2023-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-01-31
Audit: 340881
Organization: City of El Monte (CA)

AI Summary

  • Core Issue: Reports for the Coronavirus State and Local Fiscal Recovery Funds were prepared and reviewed by the same person, violating best practices.
  • Impacted Requirements: Lack of proper controls led to potential undetected errors in reporting.
  • Recommended Follow-Up: Ensure that a supervisory-level individual, separate from the report preparer, reviews all reports starting FY2024.

Finding Text

Federal Assistance Listing Number: 21.027 Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of Treasury Award Period: July 1, 2022 to June 30, 2023 Criteria: As a best practice, a supervisory-level person, other than the preparer of a report, should review reports to ensure the accuracy and completeness of data and information in the reports. Condition: Program reports were prepared and reviewed by the same individual. Cause: Controls were not properly designed to assign someone other than the preparer of the reports to review them. Effect: Errors in reporting could go undetected. Questioned Costs: None. Repeat finding: Yes, see Summary Schedule of Prior Year Audit Findings 2022-007. Recommendation: We recommend that reports be reviewed by a supervisory-level person who is not the preparer of the reports. Views of responsible officials and planned corrective actions: New procedures have been established to ensure the separation of duties and responsibilities between the individuals who prepare grant reporting and the individuals who review the reports starting FY2024. The accounting manager gathers the data and prepares the grant reporting and then the Finance Director reviews and approves the reporting before it is submitted.

Categories

Reporting

Other Findings in this Audit

  • 521006 2023-001
    Material Weakness
  • 521007 2023-002
    Material Weakness Repeat
  • 521008 2023-003
    Material Weakness Repeat
  • 521009 2023-004
    Material Weakness Repeat
  • 1097448 2023-001
    Material Weakness
  • 1097449 2023-002
    Material Weakness Repeat
  • 1097450 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $18.48M
14.231 Emergency Solutions Grant Program $2.31M
14.218 Community Development Block Grants/entitlement Grants $1.85M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.46M
16.922 Equitable Sharing Program $1.35M
14.239 Home Investment Partnerships Program $870,842
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $140,126
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $112,982
20.513 Fta Section 5310 - Enhanced Mobility of Seniors and Individuals with Disabilities Program $94,308
21.016 Equitable Sharing Program $85,763
66.202 Congressionally Mandated Projects $61,477
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $41,374
20.205 Highway Planning and Construction (federal-Aid Highway Program) $36,786
21.027 Workforce Development, Aging and Community Services Ceo Arpa Iiic1- Nutrition Services Cm -Covid 19-C1 American $34,745
20.600 State and Community Highway Safety $29,582
93.020 Home Community Based Services Nutrition Infrastructure $20,245
93.053 Nutrition Services Incentive Program $13,831
97.067 Homeland Security Grant Program $5,582
16.738 Edward Byrne Memorial Justice Assistance Grant Program $3,630