FAC Explorer

Finding 1155676 (2024-004)

Material Weakness Repeat Finding
Requirement
H
Questioned Costs
$1
Year
2024
Accepted
2025-09-26
Audit: 367944
Organization: City of Rapid City (SD)
Auditor: Ketel Thorstenson LLP

AI Summary

  • Core Issue: The City lacked a control process to verify and approve federal funding reimbursement requests made outside the grant's period of performance.
  • Impacted Requirements: Noncompliance with federal program requirements led to questioned costs totaling $168,976.
  • Recommended Follow-Up: The City should secure written approval or grant extensions before incurring costs and submitting reimbursement requests outside the designated period.

Finding Text

Finding No. 2024-004: Period of Performance Federal Program Affected: Federal Transit – ALN 20.526 & ALN 20.526 Compliance Requirement: Period of Performance Questioned Costs: $168,976 Known Questioned Costs Condition and Cause: The City did not have a control process in place to verify and have written approval for federal funding reimbursement requests submitted outside of the grant award period of performance. Criteria and Effect: The City’s internal control structure failed to obtain written approval for grant extensions on reimbursement requests submitted for expenditures outside of individual grant award period of performance. The City did not track pre-award costs to ensure proper cutoff of grant expenditures. The lack of controls resulted in noncompliance with program requirements and questioned costs to the program. All questioned costs related to period of performance was identified during testing. Recommendation: The City should obtain written approval or grant award extensions before incurring expenditures and submitting for reimbursement from the federal program outside of the grant award period of performance. Repeat Finding from Prior Year: No Response/Corrective Action Plan: The City agrees with the above finding. See Corrective Action Plan.

Corrective Action Plan

2024-004 FINDING: Period of Performance Responsible Officials: Daniel Ainslie, Finance Director, Jamie Toennies, Grants Division Manager Corrective Action Plan: Written communication will be sent to department directors and staff involved in grant administration addressing the compliance requirements associated with Period of Performance. This communication will specifically state that no federal funds will be spent outside of this time period without written approval by grantor and/or approved budget modification. In addition, the City’s Uniform Grant Guidance Polices/Procedures will be updated to include a section on Period of Performance compliance requirements. Anticipated Completion Date: December 31, 2025

Categories

Questioned Costs Period of Performance Cash Management

Other Findings in this Audit

  • 1155668 2024-004
    Material Weakness Repeat
  • 1155669 2024-004
    Material Weakness Repeat
  • 1155670 2024-004
    Material Weakness Repeat
  • 1155671 2024-003
    Material Weakness Repeat
  • 1155672 2024-003
    Material Weakness Repeat
  • 1155673 2024-003
    Material Weakness Repeat
  • 1155674 2024-003
    Material Weakness Repeat
  • 1155675 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $23.78M
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $3.76M
20.507 Federal Transit Formula Grants $700,447
16.045 Community-Based Violence Intervention and Prevention Initiative $411,200
16.738 Edward Byrne Memorial Justice Assistance Grant Program $227,579
66.046 Climate Pollution Reduction Grants $208,452
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $164,618
15.228 Blm Fuels Management and Community Fire Assistance Program Activities $131,707
94.002 Americorps Seniors Retired and Senior Volunteer Program (rsvp) 94.002 $126,403
20.600 State and Community Highway Safety $120,212
14.225 Community Development Block Grants/special Purpose Grants/insular Areas $109,765
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $94,332
97.067 Homeland Security Grant Program $69,306
16.817 Byrne Criminal Justice Innovation Program $69,289
97.044 Assistance to Firefighters Grant $63,177
16.710 Public Safety Partnership and Community Policing Grants $60,457
66.605 Performance Partnership Grants $59,041
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $44,697
10.664 Cooperative Forestry Assistance $41,618
20.939 Safe Streets and Roads for All $39,848
10.727 Inflation Reduction Act Urban & Community Forestry Program $39,450
16.575 Crime Victim Assistance $33,687
14.218 Community Development Block Grants/entitlement Grants $26,658
15.904 Historic Preservation Fund Grants-in-Aid $19,974
16.609 Project Safe Neighborhoods $17,188
16.607 Bulletproof Vest Partnership Program $11,963
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $10,194