Finding 1173243 (2024-007)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-02-11
Audit: 386737
Organization: City of Junction City, Kansas (KS)
Auditor: ADAMSBROWN LLC

AI Summary

  • Core Issue: Reports on expenditures for the Coronavirus State and Local Fiscal Recovery Funds were inaccurately prepared, leading to under-reporting.
  • Impacted Requirements: Internal controls for accurate reporting were lacking, particularly due to staff turnover and inadequate training.
  • Recommended Follow-Up: Review and improve grant reporting procedures, and ensure all staff receive proper training on reporting requirements.

Finding Text

Federal program Coronavirus State and Local Fiscal Recovery Funds – 21.027 Compliance requirements – Reporting Criteria or specific requirement Internal controls should be in place to ensure that reports are completed accurately. Condition During review of the annual program reporting, it was noted that cumulative expenditures and current period expenditures were not properly reported. Context For the current period expenditures, they were calculated using an incorrect timeframe, which resulted in them being under-reported. In addition, the cumulative expenditures were calculated using the amount reported in the prior reporting period and adding the current period expenditures, which led to them being under-reported, as well. Cause Turnover led to a new staff member preparing the reporting, and they did not have any training from the prior staff member regarding its preparation. Effect Incorrect current period expenditures and cumulative expenditures were reported to the Treasury. Recommendation We recommend that the City review its grant reporting procedures and implement controls to ensure that grant reports are completed accurately. Additionally, we recommend that all staff involved receive proper training in order to understand the information that is being requested. Views of responsible officials See Corrective Action Plan.

Corrective Action Plan

2024-007 – Coronavirus State and Local Fiscal Recovery Funds – 21.027 – Reporting Condition During review of the annual program reporting, it was noted that cumulative expenditures and current period expenditures were not properly reported. Recommendation We recommend that the City review its grant reporting procedures and implement controls to ensure that grant reports are completed accurately. Additionally, we recommend that all staff involved receive proper training in order to understand the information that is being requested. Comments on the Finding The City is in agreement with the finding. Action Taken Moving forward, a second individual will review and approve the prepared reports and information prior to it being submitted. This was implemented in January 2025.

Categories

Reporting Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
66.458 CLEAN WATER STATE REVOLVING FUND $12.21M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.31M
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $107,257
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $85,008
97.044 ASSISTANCE TO FIREFIGHTERS GRANT $41,168
16.922 EQUITABLE SHARING PROGRAM $16,000
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $6,638
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $4,011