Finding 1227178 (2025-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-08-18
Audit: 409338
Organization: Half Moon Bay (CA)

AI Summary

  • Core Issue: The City failed to submit quarterly reports for the Mercy Housing project on time, missing the seven-day deadline.
  • Impacted Requirements: This non-compliance violates Section 6 of the grant award agreement, which mandates timely reporting.
  • Recommended Follow-Up: The City should create procedures to ensure all quarterly reports are submitted on time moving forward.

Finding Text

Finding #SA2025-003: 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 agreement for the 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 2024 and March 2025 quarterly reports for the projects for testing of timely filing and compliance with the content requirements of Section 6 of the grant award agreement. The reports were filed with the grantor on March 5, 2025 and May 12, 2025, respectively, which is outside of the required seven day window. Effect: The City is not in compliance with the timely reporting requirements of the grant award agreements. Cause: We understand the reports were not filed timely due to staff oversight and delayed reporting from the City’s subrecipient. Identification as a Repeat Finding: Yes, since 2024 (Finding #SA2024-004) Recommendation: The City should develop procedures to ensure timely quarterly reporting to the grantor each quarter. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.

Corrective Action Plan

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 • Fiscal Year of Initial Finding: 2024 • Name(s) of the contact person: Kenneth Stiles, Interim Administrative Services Director • 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: September 2026

Categories

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1227176 2025-001
    Material Weakness Repeat
  • 1227177 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $782,350
20.205 HIGHWAY PLANNING AND CONSTRUCTION $571,753