Finding 1169019 (2022-006)

Material Weakness Repeat Finding
Requirement
ABCEFGHIJLMN
Questioned Costs
-
Year
2022
Accepted
2026-01-14
Audit: 381688
Organization: City of Hollister (CA)
Auditor: MUN CPAS LLP

AI Summary

  • Answer: The initial schedule of expenditures had multiple errors that need correction.
  • Trend: This indicates a recurring issue with accuracy in financial reporting.
  • List: Follow up by reviewing the corrected schedule and implementing checks to prevent future errors.

Finding Text

The initial schedule of expenditures of federal awards provided to the auditors contained numerous errors.

Corrective Action Plan

The City will strengthen its internal controls over the preparation of the Schedule of Expenditures of Federal Awards (SEFA) by implementing the improvements outlined in the corrective action for Finding 2022-002. The City’s updated Grants Administration Policy, standardized grant packet requirements, and the addition of a full-time Accountant responsible for grant reconciliation will provide the structure and oversight necessary to ensure accurate reporting of federal expenditures. The Accountant will perform year-end SEFA preparation in coordination with departmental grant managers and Finance staff to verify that expenditures reported on the SEFA reconcile to the general ledger and represent allowable costs under each federal award. This enhanced oversight will help ensure that the SEFA is prepared accurately, consistently, and in compliance with federal reporting requirements. The Accountant will also coordinate communication between department grant managers and the Finance Division to ensure that grant agreements, budgets, amendments, reports, and supporting documentation are complete and properly recorded. The updated Grants Administration Policy will reflect these strengthened processes and the centralized oversight provided through this position.

Categories

Reporting

Other Findings in this Audit

  • 1169020 2022-007
    Material Weakness Repeat
  • 1169021 2022-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $4.87M
97.083 STAFFING FOR ADEQUATE FIRE AND EMERGENCY RESPONSE (SAFER) $241,127
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $150,444
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $144,698
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $43,000
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $18,520
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $7,155
20.601 ALCOHOL IMPAIRED DRIVING COUNTERMEASURES INCENTIVE GRANTS I $2,269