FAC Explorer

Finding 1453 (2022-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-11-08
Audit: 2659
Organization: City of Perris (CA)
Auditor: Rogers Anderson Malody & Scott LLP

AI Summary

  • Core Issue: The City failed to submit the single audit on time due to delays in the financial statement audit.
  • Impacted Requirements: This violates CFR 200.512, which mandates submission within 30 days of receiving the audit report or nine months post fiscal year-end.
  • Recommended Follow-Up: Implement a tracking system to ensure timely completion of audits and adherence to deadlines.

Finding Text

Federal Program: CDBG-Entitlement Grants Cluster, AL 14.218 American Rescue Plan (ARPA) Act, AL 21.027. Criteria: As required by CFR 200.512, the single audit must be submitted to the federal audit clearinghouse within 30 days after the City receives the audit report or nine months from fiscal year-end. Condition: Delay of the financial statement audit, therefore the single audit was delayed and not able to meet the required submission date. Cause: The City did not have controls in place to ensure financial statement audit was completed within a timely manner. Identification as a Repeat Finding: This is not a repeat finding. Effect: The City could jeopardize future grant funding due to program noncompliance and experience delays in the finalization of the single audit. Questioned Costs: None. Recommendation: We recommend the City implement a tracking system to remind staff of the various reports due and respective deadlines. Management’s Response: See Corrective Action Plan.

Corrective Action Plan

The delay in submission of the single audit report arose from a delay in completion of the audit. The City's strategy to address this delay in completion of the audit includes prompt reconciliation of account balances, especially the bank account balanes, before we commence the final audit in November of each year. The City recently hired a temporary staff who is mainly focused on assisting with speeding up the bank reconciliation process which will ultimately ensure that the year-end close is completed on time for the final audit. The corrective action will be fully implemented during the Fiscal Year 2023/2024 audit. the contact persons for this corrective action are Adrienne Morales (Accouting Supervisor), Stephen Ajobiewe (Finance Manager), and Matthew Schenk (Director of Finance) for the City of Perris.

Categories

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Other Findings in this Audit

  • 1452 2022-002
    Significant Deficiency
  • 1454 2022-003
    Significant Deficiency
  • 577894 2022-002
    Significant Deficiency
  • 577895 2022-003
    Significant Deficiency
  • 577896 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $6.45M
14.218 Community Development Block Grants/entitlement Grants $986,748
21.019 Coronavirus Relief Fund $258,389
10.551 Supplemental Nutrition Assistance Program $91,714
11.300 Investments for Public Works and Economic Development Facilities $14,038
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $13,433
97.062 Scientific Leadership Awards $6,045