FAC Explorer

Finding 1227150 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-08-18
Audit: 409318
Organization: Beaumont Cherry Valley Water District (CA)
Auditor: ROGERS ANDERSON MALODY & SCOTT LLP

AI Summary

  • Core Issue: The entity failed to submit a required quarterly report on time, violating federal grant requirements.
  • Impacted Requirements: Timely submission of reports as outlined in 2 CFR §200.328(b)(1) is crucial for compliance and monitoring.
  • Recommended Follow-Up: Improve procedures for tracking and submitting all grant reports by their deadlines to avoid future noncompliance.

Finding Text

Finding 2025-001: Untimely Submission of Required Quarterly Report Noncompliance and Significant Deficiency ARPA, AL 21.027 Criteria: In accordance with 2 CFR §200.328(b)(1) and the specific terms and conditions of the federal award agreement, recipients are required to submit performance and/or financial reports quarterly, no later than the 21st day of the following month after the end of each calendar quarter. Timely submission of these reports is essential for the federal awarding agency to monitor progress and compliance with program objectives. Condition: During our audit of the entity’s compliance with federal program requirements, we noted that the entity did not submit one required quarterly report by the date established in the grant agreement. Cause: The entity had the understanding that a fourth quarterly report was not necessary because construction on the projects funded by the program had been completed in the prior quarter, although billing for one project had not. The entity sought written clarification on reporting requirements from the grant administrator and was informed that a final report was necessary, but this was not requested until the due date. Effect: Failure to submit required reports on time constitutes noncompliance with federal grant requirements. Late submissions may impede the federal agency’s ability to monitor the project’s progress and may affect future funding decisions or lead to additional oversight. Identification as a Repeat Finding: This is a repeat finding, listed as 2024-001 in the prior year single audit report. Recommendation: We recommend that the entity enhance its procedures for identifying and monitoring all grant reporting requirements to ensure that required reports are submitted by the deadlines established in grant agreements. Views of Responsible Officials: See the attached Corrective Action Plan.

Corrective Action Plan

The District concurs with the finding. Following the 2024 Single Audit, the District assigned separate report preparation and review responsibilities and implemented a report review checklist. However, the procedures did not include a comprehensive mechanism for tracking recurring, final, and closeout reports or a requirement to resolve uncertain reporting obligations sufficiently in advance of the deadline. The District will take the following actions: 1. Establish and maintain a Grant Reporting Requirements Matrix and calendar for each federal award and pass-through grant. The matrix will identify each recurring, final, and closeout report; the applicable grant provision; reporting period; due date; submission method; assigned preparer; assigned reviewer; and evidence of submission. 2. Set documented reminder dates in advance of each deadline and require the assigned preparer to confirm, for every reporting period, whether a report is required. Final and closeout reporting requirements will be reconfirmed before project completion. When a requirement is uncertain, the District will request written clarification from the grantor or passthrough entity as soon as the uncertainty is identified. Unless written confirmation is received that a report is not required, the District will prepare and submit the report. 3. Require the Finance Manager or designated supervisory reviewer to review the reporting calendar at least monthly while an award is active and to verify completion of each required submission. 4. Retain the completed review checklist, approved report, supporting documentation, correspondence concerning reporting requirements, and proof of timely submission in the grant file. 5. Incorporate these controls into written grant-reporting procedures and provide training to staff assigned to federal award administration. Person Responsible for Corrective Action: William Clayton, Finance Manager Anticipated Completion Date for Corrective Action: September 30, 2026. The reporting matrix, advance reminders, and supervisory monitoring will be used immediately for all open federal and pass-through awards, with written procedures and staff training completed by this date.

Categories

Reporting Subrecipient Monitoring Significant Deficiency

Other Findings in this Audit

  • 1227151 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.41M