Finding 1221398 (2025-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-06-30
Audit: 405715
Organization: City of Montebello (CA)

AI Summary

  • Core Issue: The City failed to submit the required Federal Financial Report (FFR) and Programmatic Performance Report (PPR) on time, impacting compliance with grant reporting requirements.
  • Impacted Requirements: Both FFR and PPR must be submitted semi-annually, even during periods without grant activity, and timely submission is critical for compliance.
  • Recommended Follow-Up: Develop and implement policies for accurate and timely report preparation, strengthen monitoring controls, and establish formal tracking procedures with supervisory reviews to ensure deadlines are met.

Finding Text

Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Federal Financial Report (“FFR”) – The FFR must be submitted semi-annually throughout the period of performance, as well as in periods where no grant award activity occurs. The due date of each quarterly report is noted below: Programmatic Performance Report (“PPR”) – The PPR is required to be submitted semi-annually throughout the period of performance, as well as in periods where no grant award activity occurs. The due date of each quarterly report is noted below: Condition: We noted that the bi-annual FFR and PPR for SAFER were not submitted within the deadline, as shown below: Cause: Monitoring controls are inadequate to ensure the timely submission of the required reports. In addition, the SAFER grant was still relatively new to the City and staff were still becoming familiar with the related reporting requirements and deadlines during Fiscal Year 2024-25. Effect or Potential Effect: The City was not in compliance with the program’s reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: 2024-004. Recommendation: We recommend the City develop policy and procedures to ensure that the reports are prepared accurately and submitted timely. In addition, we recommend the City strengthen its monitoring controls and reporting procedures to ensure all required federal reports are prepared, reviewed, and submitted timely in accordance with grant requirements and reporting deadlines. The City should establish formal tracking procedures, including reporting calendars and supervisory review processes, to monitor due dates and submission status for each grant program. Views of Responsible Officials: Management endeavors to submit all required reports by required deadlines. The new Federal grant for the City’s Fire Department staffing (SAFER) are managed by the Fire Department. Prior staff charged with monitoring these grants failed to file the FFRs and PPRs in a timely manner – this was due to a number of factors, even though Finance staff endeavored to work with them to ensure reports were filed. This Fire Department staff person is no longer with the City and Finance looks to work more closely with the staff in the Fire Department charged with grant monitoring. Management will consider establishing formal tracking processes for all FFRs and PPRs, with deadline monitoring and supervisor review/sign-off.

Corrective Action Plan

The City will update its grant policy to strengthen internal controls for grant monitoring. The policy will establish the rules and procedures for how departments process, utilize, and monitory grant funding. With the updated policy, the City can ensure accountability, transparency and compliance. Quarterly meeting with departments’ grants administrator will be set up to ensure grant drawdowns and other reporting are done timely. This will also require supervisor’s review and sign offs. Also, the grant accountant will familiarize themselves with the grant documents and deadlines even if the deadlines do not pertain to the finance department. Responsible Person: Sarby Munoz Expected Implementation Date: 07/01/2026

Categories

Reporting

Other Findings in this Audit

  • 1221396 2025-003
    Material Weakness Repeat
  • 1221397 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
97.083 STAFFING FOR ADEQUATE FIRE AND EMERGENCY RESPONSE (SAFER) $1.55M
97.052 EMERGENCY OPERATIONS CENTER $1.04M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.03M
20.205 HIGHWAY PLANNING AND CONSTRUCTION $720,000
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $595,391
16.922 EQUITABLE SHARING PROGRAM $300,617
97.044 ASSISTANCE TO FIREFIGHTERS GRANT $183,848
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $62,309
20.507 FEDERAL TRANSIT FORMULA GRANTS $41,324
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $37,926
20.608 MINIMUM PENALTIES FOR REPEAT OFFENDERS FOR DRIVING WHILE INTOXICATED $35,041
21.016 EQUITABLE SHARING $23,775
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $21,985
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $21,626
97.039 HAZARD MITIGATION GRANT $14,492
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $1,432
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $1,401