Finding 1186656 (2025-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-03-25

AI Summary

  • Core Issue: The City failed to submit the construction contract award information to the DLAE within the required 60 days after approval.
  • Impacted Requirements: This non-compliance with the grant agreement could lead to delays in project approvals and administrative issues.
  • Recommended Follow-Up: Implement a centralized tracking system and reminders to ensure timely submissions for grant compliance.

Finding Text

Finding #SA2025-001: Timely Submission of Project Contract Award Assistance Listing Number: 20.205 Assistance Listing Title: Highway Planning and Construction (Federal-Aid Highway Program) Name of Federal Agency: Department of Transportation Pass Through Entity: California Department of Transportation Federal Award Identification Number: STPL-5479(068) Criteria: The grant agreement for project STPL-5479(068) requires that award information for construction contracts be submitted to the District Local Assistance Engineer (DLAE) with the California Department of Transportation within 60 days of the project contract award. Condition: During our review of the construction contract award for the project, we noted that the contract was approved by the City Council on September 3, 2024. The award package for the construction contract was submitted to the DLAE on November 26, 2024, which was more than 60 days after the contract award date, and therefore not within the timeframe required by the grant agreement. Effect: As a result, the City did not comply with the timely submission requirement specified in the grant agreement with the State of California. Failure to comply with grant agreement requirements could increase the risk of delays in project approvals or other administrative issues related to grant compliance. Cause: Based on discussions with City personnel, the delay occurred due to administrative oversight, and the submission deadline was inadvertently missed. Recommendation: We recommend that the City strengthen its internal procedures for monitoring grant compliance deadlines. This may include maintaining a centralized tracking system for grant requirements and establishing reminders or review procedures to help ensure that required submissions are completed within the timelines specified in grant agreements. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.

Corrective Action Plan

The City will implement the following corrective actions to ensure timely compliance with all grant requirements: 1. Grant Compliance Tracking • The City will establish a formal, centralized tracking system for all active grants and associated compliance deadlines, including award package submittals. • Grant requirements will be reviewed on a weekly basis as part of an established internal coordination meeting. • Submission deadlines (including the 60-day award package requirement) will be tracked and monitored proactively. 2. Integration into Existing City Processes • Since contract award actions are already tracked through established internal coordination meetings, staff will incorporate post-award compliance milestones into this workflow. • This ensures continuity between award approval and required grant documentation submittals. 3. Implementation of Grant Management Software • The City is implementing a grant management system through Euna Solutions (formerly AmpliFund) to strengthen compliance and oversight. • This system will: • Centralize grant information and documentation • Track deadlines, requirements, and deliverables in one platform • Provide automated reminders and notifications for key dates • Maintain audit-ready records and reporting • As described by the platform, grant management software helps "centralize and streamline the entire grant lifecycle...ensuring compliance" and provides "automatic notifications to remind you of key dates and deadlines" while improving transparency and accountability. • The system also enables real-time visibility into grant requirements, deadlines, and progress, helping agencies "track compliance requirements... and provide complete audit trails" to reduce risk of future findings. 4. Enhanced Accountability and Oversight • Responsibility for tracking and submitting award packages will be clearly assigned to designated staff, identified as the Senior Civil Engineer in the Capital Improvement Program assigned to the project. • Supervisory review will be incorporated into the weekly tracking process to ensure accountability. Expected Outcome These corrective actions will: • Ensure all award packages and grant deliverables are submitted within required timeframes • Improve internal coordination and accountability • Reduce administrative risk and prevent recurrence of audit findings • Enhance overall grant compliance through centralized tracking and automated reminders Anticipated Completion Date: • Weekly tracking procedures: Implemented immediately • Integration into City processes: Implemented immediately • Grant management software (Euna Solutions): Implementation underway, full integration estimated by January 31, 2027

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1186657 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $3.59M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $360,460
20.608 MINIMUM PENALTIES FOR REPEAT OFFENDERS FOR DRIVING WHILE INTOXICATED $197,921
81.128 ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM (EECBG) $193,250
97.067 HOMELAND SECURITY GRANT PROGRAM $153,773
16.753 Domestic Violence Intervention and Prevention Program $87,091
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $80,917
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $64,600
16.922 EQUITABLE SHARING PROGRAM $59,531
20.205 HIGHWAY PLANNING AND CONSTRUCTION $24,176
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $23,781
16.U01 Domestic Cannabis Eradication/Supression Program (DCESP) $13,000