Finding 1216957 (2024-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-06-08
Audit: 403247
Organization: Half Moon Bay (CA)

AI Summary

  • Core Issue: The City failed to submit required quarterly reports on time for the Opportunity Center of the Coastside project.
  • Impacted Requirements: This non-compliance violates Section 6 of the grant award agreement, which mandates reports within seven days after each quarter.
  • Recommended Follow-Up: The City should create procedures to ensure all quarterly reports are submitted promptly to avoid future oversights.

Finding Text

Finding #SA2024-004: Timely Quarterly Reporting Assistance Listing Number: 21.027 Assistance Listing Title: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: Department of the Treasury Pass Through Entity: County of San Mateo Federal Award Identification Number: SFLRP0201 Criteria: Section 6, Reporting Requirements, of the City’s grant award agreements for both the Opportunity Center of the Coastside and Mercy Housing California project requires “written quarterly reports, submitted electronically on Grantee’s official letterhead…within seven (7) days after the end of each quarter.” Condition: We selected the December 2023 and June 2024 quarterly reports for both projects for testing of timely filing and compliance with the content requirements of Section 6 of the grant award agreement. Since the Opportunity Center of the Coastside project started in early 2024, there was no December 2023 report. As for the June 2024 report for the Opportunity Center of the Coastside project, City staff did provide invoice documentation to the County in August 2024, but City staff could not provide documentation that the required written quarterly report had been filed with the County. Effect: The City is not in compliance with the timely reporting requirements of the grant award agreement. Cause: We understand the report was not filed due to staff oversight. Recommendation: The City should develop procedures to ensure timely quarterly reporting to the grantor. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.

Corrective Action Plan

Finding #SA2024-004: Timely Quarterly Reporting Assistance Listing Number: 21.027 Assistance Listing Title: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: Department of the Treasury Pass Through Entity: County of San Mateo Federal Award Identification Number: SFLRP0201 • Name(s) of the contact person: Kenneth Stiles, Finance Manager • Corrective Action Plan: The City will implement controls to ensure timely quarterly reporting. Specifically, the City will: 1. Establish a reporting calendar with internal deadlines. 2. Assign primary and backup staff for report preparation. 3. Implement a review process prior to submission. 4. Use tracking tools to monitor deadlines and status. • Anticipated Completion Date: July 2026

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1216954 2024-001
    Material Weakness Repeat
  • 1216955 2024-002
    Material Weakness Repeat
  • 1216956 2024-003
    Material Weakness Repeat
  • 1216958 2024-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.25M
20.205 HIGHWAY PLANNING AND CONSTRUCTION $298,537