Finding Text
Finding No. SA 2025-005 – Inclusion of Anticipated Equitable Sharing Funds in the Adopted Budget Federal Assistance Listing Number: 16.922 Federal Program Title: Equitable Sharing Program Federal Agency: U.S. Department of Justice Award Period: Fiscal year 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Per the OMB Compliance Supplement and guidance issued by the U.S. Department of Justice for the Equitable Sharing Program, agencies are permitted to earmark in their budgets only Equitable Sharing funds that have been awarded and received and are currently on hand. Agencies may not budget or commit anticipated or future Equitable Sharing funds that have not yet been awarded or received. Condition: The City’s adopted budget included anticipated Equitable Sharing funds that had not yet been awarded or received. Cause: The City did not have adequate procedures in place to ensure that only awarded and received Equitable Sharing funds were included in the adopted budget. Effect: Including anticipated funds in the adopted budget may result in noncompliance with Equitable Sharing Program requirements and could lead to sanctions such as suspension or permanent exclusion from the program, denial or extinguishment of future sharing requests, or the requirement to return previously disbursed funds. Questioned Costs: None. Repeat finding: No. Recommendation: We recommend that management strengthen procedures over budget preparation related to the Equitable Sharing Program to ensure that only Equitable Sharing funds that have been awarded and received are included in the adopted budget. Views of responsible officials and planned corrective actions: The Finance Staff will collaborate with Police Department Staff during the budgeting process to ensure that revenue is not inappropriately budgeted. Personnel responsible for implementation: Carmen Tsui, Grant Accountant Completion Date: June 30, 2026