Finding 1147942 (2024-003)

Material Weakness
Requirement
ABCG
Questioned Costs
-
Year
2024
Accepted
2025-07-17
Audit: 362454
Organization: City of Loveland (CO)

AI Summary

  • Core Issue: The City lacks proper controls for reviewing reimbursement requests, risking compliance with federal regulations.
  • Impacted Requirements: Internal controls must ensure compliance with 2 CFR 200.303(a) and related guidance for managing federal awards.
  • Recommended Follow-Up: Implement a review process for all reimbursement requests before submission to enhance oversight and compliance.

Finding Text

Assistance Listing, Federal Agency, and Program Name - 15.916, U.S. Department of the Interior, Outdoor Recreation, Acquisition, Development and Planning Federal Award Identification Number and Year - FAIN not available, 2024 Pass through Entity - Colorado Parks and Wildlife/Land and Water Conservation Fund Finding Type - Material weakness Repeat Finding - No Criteria - Per 2 CFR 200.303(a), nonfederal entities must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the comptroller general of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission. Condition - The City did not have controls in place surrounding the review of requests for reimbursement to ensure the underlying invoices were allowable and that the local matching contribution was calculated correctly. Questioned Costs - None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - The same individual at the City prepared and submitted the requests for reimbursement without a second person reviewing the request. The City submitted two requests for reimbursement during the year under audit with grant reimbursement amounts totalling $550,495. The City submitted a third request for reimbursement subsequent to the year under audit that included 2024 expenditures of federal awards in the amount of $653,591. Cause and Effect - The City did not have a policy in place to ensure an individual in the finance department reviewed the requests for reimbursement prepared by department staff; however, no unallowable costs, incorrect matching calculations, or inappropriate reimbursement requests were noted as a result of our audit procedures. Recommendation - We recommend the City implement a process to ensure all requests for reimbursement are reviewed prior to submission. Views of Responsible Officials and Planned Corrective Actions - The City agrees with this finding. The grant accountant is revising our grant regulations and requirements to improve our internal controls and processes. Part of this update will include a requirement that all RFRs prepared by departments are forwarded to the Finance department for review and approval prior to submission. See the corrective action plan.

Categories

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 571498 2024-001
    Material Weakness
  • 571499 2024-002
    Material Weakness
  • 571500 2024-003
    Material Weakness
  • 571501 2024-004
    Material Weakness
  • 571502 2024-005
    Material Weakness
  • 571503 2024-006
    Material Weakness
  • 571504 2024-006
    Material Weakness
  • 1147940 2024-001
    Material Weakness
  • 1147941 2024-002
    Material Weakness
  • 1147943 2024-004
    Material Weakness
  • 1147944 2024-005
    Material Weakness
  • 1147945 2024-006
    Material Weakness
  • 1147946 2024-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $9.27M
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $3.25M
97.039 Hazard Mitigation Grant $1.14M
15.916 Outdoor Recreation Acquisition, Development and Planning $1.01M
20.507 Federal Transit Formula Grants $892,699
14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $810,000
20.106 Covid-19 - Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $669,458
20.507 Covid-19 - Federal Transit Formula Grants $495,732
94.021 Americorps Volunteer Generation Fund 94.021 $327,801
14.218 Community Development Block Grants/entitlement Grants $298,173
20.205 Highway Planning and Construction $256,489
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $70,237
11.307 Covid-19 - Economic Adjustment Assistance $68,786
16.575 Crime Victim Assistance $50,612
15.605 Sport Fish Restoration $37,598
17.285 Registered Apprenticeship $35,607
20.600 State and Community Highway Safety $29,423
93.575 Child Care and Development Block Grant $23,545
32.009 Emergency Connectivity Fund Program $17,972
14.218 Covid-19 - Community Development Block Grants/entitlement Grants $8,865
45.025 Promotion of the Arts Partnership Agreements $3,250