Finding 1156799 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 369179
Organization: City of New Philadelphia (OH)
Auditor: Rea

AI Summary

  • Core Issue: The City submitted inaccurate financial reports (Standard Form-271 and Standard Form-425) by including expenses paid after the reporting period closed.
  • Impacted Requirements: Reports must only include expenses incurred within the specified reporting period (10/1/23 - 9/30/24) and adhere to OMB guidelines for financial reporting.
  • Recommended Follow-up: The City should establish better controls to verify the accuracy of reports before submission to prevent future errors.

Finding Text

Finding Number: 2024-002 Federal Program: Airport Improvement Program Federal Award Identification Number: 3-39-0060-021-2023 Assistance Listing Number (ALN): 20.106 Federal Awarding Agency: U.S. Department of Transportation Pass-through Entity: None Repeat Finding: No Significant Deficiency and Noncompliance – Reporting Criteria: Unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB-approved, governmentwide data elements available from the OMB-designated standards lead). This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. The Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information. (2 CFR 200.328) Until the grant is completed and closed, recipients are responsible for submitting formal reports as follows: A signed/dated Standard Form-270 (non-construction projects) or Standard Form-271 or equivalent (construction projects) and Standard Form-425 annually, due 90 days after the end of each federal fiscal year in which this grant is open (due December 31 of each year this grant is open). Condition: Errors were identified in the cash basis Standard Form-271 and Standard Form-425 reports submitted by the City. Questioned Costs: None. Identification of How Questioned Costs Were Computed: N/A Context: Standard Form-425 and Standard Form-271 included grant expenses in the amount of $1,359,343 which were paid after the reporting period closed. Cause and Effect: The Standard Form-425 and Standard Form-271 covered the reporting period of 10/1/23 through 9/30/24. The City improperly included expenses that were paid shortly after period end. Recommendation: The City should implement controls to ensure the required reports are accurate prior to submission. Officials’ Response: See Corrective Action Plan.

Corrective Action Plan

The City will review its process for accumulating data for required reports and implement additional procedures to reconcile reports with cash basis activities.

Categories

Subrecipient Monitoring Reporting Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $2.05M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $141,853
21.027 Coronavirus State and Local Fiscal Recovery Funds $30,513
20.205 Highway Planning and Construction $12,756
14.239 Home Investment Partnerships Program $7,774
16.575 Crime Victim Assistance $4,478