Finding 1169076 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-01-14
Audit: 381797
Organization: City of St. George, Ut (UT)

AI Summary

  • Core Issue: SF-425 reports for the NRCS grant do not match the city’s general ledger.
  • Impacted Requirements: Cumulative amounts reported must align with authorized expenditures.
  • Recommended Follow-Up: Implement procedures to ensure SF-425 amounts reconcile with the general ledger.

Finding Text

Finding – Form SF-425 – USDA 10.923: Criteria: Amounts reported on Form SF-425 should be cumulative by award and agree to the city’s general ledger Condition: We noted the SF-425 reports filed for the Natural Resources Conservation Service (NRCS) grant did not agree to the amounts reported in the city’s general ledger. Cause: It appears the SF-425 reports were updated for amounts authorized for expenditure by NRCS, but the actual expenditures incurred to date had not been updated. Effect: The SF-425 reports filed by the city did not reconcile to the cumulative amounts recorded in the city’s general ledger. Recommendation: We recommend the city establish procedures to ensure the amounts reported on the SF-425 forms reconcile to the amounts recorded in city’s general ledger.

Corrective Action Plan

The Form SF-425 was completed by staff at NRCS on behalf of the City, but we failed to notify NRCS of updated expenditures to date and correct balances as of each reporting period, which should have been done before the form was signed and submitted. To correct this, the City will establish the following procedures: Any draft SF-425 and other grant forms will be submitted to the Finance Director for review and approval, along with any supporting documentation, prior to submission. The Finance Director will verify totals match spending in appropriate general ledger accounts before approving the form. Once approved, Public Works staff will sign and submit required forms by the due dates established in the grant documents. As needed, the City will subcontract grant compliance services with outside firms specializing in such matters.

Categories

Reporting

Programs in Audit

ALN Program Name Expenditures
10.923 EMERGENCY WATERSHED PROTECTION PROGRAM $5.14M
20.507 FEDERAL TRANSIT FORMULA GRANTS $2.29M
15.507 WATERSMART (SUSTAIN AND MANAGE AMERICA’S RESOURCES FOR TOMORROW) $1.84M
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $1.42M
81.086 CONSERVATION RESEARCH AND DEVELOPMENT $381,582
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $170,805
20.205 HIGHWAY PLANNING AND CONSTRUCTION $147,928
95.001 HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM $126,562
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $97,432
16.575 CRIME VICTIM ASSISTANCE $51,518
21.000 Treasury Forfeiture Program $24,007
15.904 HISTORIC PRESERVATION FUND GRANTS-IN-AID $20,000
16.922 EQUITABLE SHARING PROGRAM $5,968
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $5,894
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $5,386
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $2,946
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $272