Finding 1164468 (2025-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2025-12-11
Audit: 374000
Organization: City of Monroe (LA)

AI Summary

  • Core Issue: The City reported matching funds incorrectly by including funds already used for another Federal grant.
  • Impacted Requirements: This violates the Uniform Guidance which mandates that cost-sharing funds must not overlap with funds from other Federal awards.
  • Recommended Follow-up: Review records supporting Federal grant reimbursements to ensure matching funds are not duplicated across grants.

Finding Text

Reference # and Title: 2025-004 Reporting Federal Grantor/Program Name Award Year Assistance Listing No. Congressionally Mandated Projects 2024 66.202 Criteria or specific requirement: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Subpart D Section 306(b)(5) states "For all Federal Awards, the Federal agency or pass-through entity must accept any cost sharing funds (including cash and third-party in-kind contributions, and also including funds committed by the recipient, subrecipient, or third parties) as part of the recipient's or subrecipient's contributions to a program when the funds are not paid by the Federal Government under another Federal award, except where the program's Federal authorizing statute specifically provides that Federal funds made available for the program can be applied to cost sharing requirements of other Federal Programs." Condition found: The City had adequate local matching funds to meet the matching grant requirements for both grants. However, the claims for reimbursement report included funds as matching that were used as matching or cost reimbursement under another Federal grant. Context: The rnatching funds on the claims for reimbursement report was tested by comparing amounts reimbursed under another Federal grant. Possible asserted effect (cause and effect): Cause: Records that support federal grant reimbursements were not reviewed thoroughly to provide other local matching funds on the claims for reimbursement report. Effect: The claims for reimbursement report did not report matching funds correctly. Recommendation to prevent future occurrences: Underlying records that support Federal grant reimbursements and matching funds used should be reviewed carefully to mitigate the reporting of the same rnatching or reimbursement funds on more than one Federal grant. Origination date and prior year reference (if applicable): This finding originated in the fiscal year ended April 30, 2025. View of responsible official: See auditee prepared corrective action plan included later in this report as "Corrective Action Plan for Current Year Findings and Questioned Costs."

Corrective Action Plan

Corrective action plan: The City plans to implement the following procedures: Remedial Steps Financial Reconciliation and Adjustment * Quantify Questioned Costs: Immediately calculate the exact dollar amount of Federal funds improperly claimed as matching for the current grant and the previous grant(s). This step should take place within 30 days of report issue date * Correct Claims/Reports: Submit necessary adjusted financial reports/claims for reimbursement to the Federal Grantor and/or pass-Through Entity for the affected grants, replacing the unallowable Federal match with an eligible, documented non-Federal match source (or repaying the Federal portion if no eligible local match is available). This step should take place within 60 days of report issue date Future Prevention Training and Certification * Mandatory Training: Conduct mandatory training for all Grant Managers on 2 CFR Part 200, Subpart D within 90 days of report issue date. Policy and Procedure Establishment *Grants Management Policy: Develop and implement a written policy requiring all grant personnel to: a) Track and document the funding source (Federal or Non-Federal) of all matching contributions, and b) Obtain senior finance sign-off on all matching documentation before submission of any reimbursement claim, confirming compliance with 2 CFR 20.306 within 12 days of report issue date. * Tracking: Improve existing tracking system to ensure expenditure is distinctly separated from all Federal costs and not cross-claimed between awards. Within 60 days of report issue date Person reponsible for corrective action: C. Morgan McCallister, PE, City Engineer Amber L. Sellers, Grant Manager Anticipated completion date: Overall within 120 of report issue date. See Correction Action Plan for milestone timeframes.

Categories

Matching / Level of Effort / Earmarking Subrecipient Monitoring

Programs in Audit

ALN Program Name Expenditures
20.205 HIGHWAY PLANNING AND CONSTRUCTION - KANSAS LANE CONNECTOR $4.68M
21.027 COVID-19 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $3.96M
66.202 CONGRESSIONALLY MANDATED PROJECTS $2.00M
20.507 FEDERAL TRANSIT FORMULA GRANTS $1.30M
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $847,288
20.205 HIGHWAY PLANNING AND CONSTRUCTION - WINNSBORO RD ENHANCEMENT $395,642
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $250,668
14.239 COVID-19 ARPA HOME INVESTMENT PARTNERSHIPS PROGRAM $233,687
14.905 LEAD HAZARD REDUCTION DEMONSTRATION GRANT PROGRAM $181,104
20.205 HIGHWAY PLANNING AND CONSTRUCTION - SOUTH GRANT ST/ORANGE ST/STANDIFER AVE $171,574
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $102,872
20.942 THRIVING COMMUNITIES PROGRAM CAPACITY BUILDERS COOPERATIVE AGREEMENTS $90,000
15.929 SAVE AMERICA'S TREASURES $59,125
14.218 COVID-19 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $57,432
93.276 DRUG-FREE COMMUNITIES SUPPORT PROGRAM GRANTS $38,880
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $35,202
20.600 STATE AND COMMUNITY HIGHWAY SAFETY (SECTION 402) $22,354
16.609 PROJECT SAFE NEIGHBORHOODS $20,000
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $18,986
16.012 MPD SAFE STREET TASK FORCE/ATF $16,899
14.913 HEALTHY HOMES PRODUCTION PROGRAM $13,680
20.205 HIGHWAY PLANNING AND CONSTRUCTION $11,520
66.818 BROWNFIELDS MULTIPURPOSE, ASSESSMENT, REVOLVING LOAN FUND, AND CLEANUP COOPERATIVE AGREEMENTS $8,954
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $8,600
20.205 HIGHWAY PLANNING AND CONSTRUCTION - LEE AVE/ JACKSO ST/ STANDIFER AVE $6,000
97.044 ASSISTANCE TO FIREFIGHTERS GRANT $1,068