Finding 1162147 (2023-007)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-11-07

AI Summary

  • Core Issue: The Schedule of Expenditures of Federal Awards was incomplete, missing the Homekey awards.
  • Impacted Requirements: All Federal fund expenditures, including capital projects, must be reported.
  • Recommended Follow-Up: Create a summary sheet for each major grant, have it reviewed by a second person, and use it for year-end reporting.

Finding Text

CRITERIA: The Schedule of Expenditures of Federal Awards is required to include all expenditures of Federal funds, including those used for capital projects. CONDITION: Management did not include the Homekey awards in its Schedule of Expenditures of Federal Awards. The Homekey and related Los Angeles County awards were funded under 21.027. CAUSE: The Schedule of Expenditures of Federal Awards did not include all grants and was not reviewed by a second individual. EFFECT OR POTENTIAL EFFECT: Management's Schedule of Expenditures of Federal Awards was incomplete and required material adjustments. RECOMMENDATION: Management should prepare a summary sheet for each significant grant agreement to track its major terms, including whether the grant included Federal funds. This sheet should be reviewed by someone other than the preparer and should be utilized in preparing the Schedule of Expenditures of Federal Awards at the end of the year. VIEW OF RESPONSIBLE OFFICIAL: We will ensure all amounts are included in the future.

Corrective Action Plan

2023-007 – Management's Schedule of Expenditures of Federal Awards was incomplete and required material adjustments. Auditor Recommendation: Management should prepare a summary sheet for each significant grant agreement to track its major terms, including whether the grant included Federal funds. This sheet should be reviewed by someone other than the preparer and should be utilized in preparing the Schedule of Expenditures of Federal Awards at the end of the year. Action Taken: The SEFA methodology was revised to include all federal funds Name of responsible person: Czarina Luna, Controller Anticipated completion date: Complete as of November 2025

Categories

Reporting

Other Findings in this Audit

  • 1162141 2023-007
    Material Weakness Repeat
  • 1162142 2023-008
    Material Weakness Repeat
  • 1162143 2023-007
    Material Weakness Repeat
  • 1162144 2023-008
    Material Weakness Repeat
  • 1162145 2023-007
    Material Weakness Repeat
  • 1162146 2023-008
    Material Weakness Repeat
  • 1162148 2023-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $4.64M
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $440,856
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $75,371