FAC Explorer

Finding 26288 (2022-005)

Material Weakness
Requirement
ABIL
Questioned Costs
-
Year
2022
Accepted
2023-09-27
Audit: 17864
Organization: City of Jacksonville (FL)
Auditor: Carr Riggs & Ingram

AI Summary

  • Core Issue: Internal controls over Federal awards were ineffective, leading to incorrect reporting of lost revenue and missing grant expenditures.
  • Impacted Requirements: Compliance with 2 CFR Part 200 and related regulations was not met, particularly in areas of allowable costs and contractor eligibility.
  • Recommended Follow-Up: Establish clear written procedures for all grant controls, detailing responsibilities and ensuring documentation is complete and reperformable.

Finding Text

Criteria: 2 CFR Part 200 in general and 2 CFR section 200.332 require non-Federal entities to establish and maintain effective internal controls over Federal awards, including the requirements for allowable costs, cost principles, reporting, and suspension and debarment. The related compliance requirements are set in 2 CFR Part 200 sections 200.514(c), 200.212, 200.318(h), 180.300 and subpart E; 48 CFR section 52.209-6; 31 CFR section 19.300; sections 602 and 603 of the Social Security Act as added by section 9901 of the American Rescue Plan Act of 2021, Pub. L. No. 117-2 as codified at 42 USC 802 and 803 and 31 CFR Part 35, federal awarding agency regulations, and the terms and conditions of the award. Condition: Controls related to calculation and reporting of lost revenue were not effective and the amount calculated as base year revenue was incorrectly reported. Controls related to reporting of other grant expenditures were not effective and certain amounts were missing from the financial reports. Controls related to ensuring contractors were not suspended, debarred, or otherwise excluded pursuant to 31 CFR section 19.300 were not documented in a manner that is reperformable. Cause: Base year calculation of revenue was performed using interim financial information and was not reconciled to final audited reports. Base year calculation of revenue was not clearly documented. Subsequent year revenue calculations were performed by a consultant who was not engaged to review the base year calculation. Controls over such calculations were not effective. Review of financial reports was not sufficient to ensure all grant expenditures were reported. Suspension and debarment controls were not evidenced with clear documentation; checklists are maintained but were not completed in all cases. Effect: Calculation of lost revenue was incorrectly reported. Expenditures related to the provision of government services related to such lost revenue did not exceed the actual lost revenue. Certain other grant expenditures were erroneously excluded from the financial reports. Procurement of contractors risks including those who were suspended or debarred; however none such were identified. Recommendation: We recommend that the City ensure that all controls for grants be documented in written procedures which should include the name or title of the positions responsible for each control (preparation, review, reconciliation, etc.) and that the performance of the controls be documented in a clear, reperformable manner including the name and date of each responsible individual and which specific control they performed over compliance for the grant.

Corrective Action Plan

Action Plan: We will work with our departments to ensure that controls for grants are documented with written procedures. These procedures will include the title of the positions responsible for each control (preparation, review, reconciliation, etc.) and will require that the performance of the controls be documented in a clear, re-performable manner with the name of the responsible individuals, the specific control(s) they performed over compliance for the grant, and the date(s) the controls were performed. Contact Names Responsible for the plan - Marcia Saulo Anticipated completion date of the plan - September 20, 2024

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Other Findings in this Audit

  • 26281 2022-007
    Material Weakness
  • 26282 2022-007
    Material Weakness
  • 26283 2022-006
    Material Weakness Repeat
  • 26284 2022-006
    Material Weakness Repeat
  • 26285 2022-008
    Material Weakness
  • 26286 2022-008
    Material Weakness
  • 26287 2022-004
    Material Weakness Repeat
  • 26289 2022-009
    Material Weakness
  • 26290 2022-009
    Material Weakness
  • 602723 2022-007
    Material Weakness
  • 602724 2022-007
    Material Weakness
  • 602725 2022-006
    Material Weakness Repeat
  • 602726 2022-006
    Material Weakness Repeat
  • 602727 2022-008
    Material Weakness
  • 602728 2022-008
    Material Weakness
  • 602729 2022-004
    Material Weakness Repeat
  • 602730 2022-005
    Material Weakness
  • 602731 2022-009
    Material Weakness
  • 602732 2022-009
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $88.42M
21.023 Emergency Rental Assistance Program $29.44M
20.205 Highway Planning and Construction $6.72M
93.914 Hiv Emergency Relief Project Grants $6.18M
97.083 Staffing for Adequate Fire and Emergency Response (safer) $4.50M
21.019 Coronavirus Relief Fund $4.23M
14.231 Emergency Solutions Grant Program $3.00M
14.239 Home Investment Partnerships Program $2.67M
14.241 Housing Opportunities for Persons with Aids $2.52M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $2.19M
14.218 Community Development Block Grants/entitlement Grants $2.13M
93.137 Community Programs to Improve Minority Health Grant Program $1.29M
10.558 Child and Adult Care Food Program $1.08M
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $1.00M
93.563 Child Support Enforcement $986,309
16.817 Byrne Criminal Justice Innovation Program $898,123
93.686 Ending the Hiv Epidemic: A Plan for America Ryan White Hiv/aids Program Parts A and B (b) $828,844
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $734,800
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $593,064
45.310 Grants to States $467,070
16.034 Coronavirus Emergency Supplemental Funding Program $424,806
66.001 Air Pollution Control Program Support $374,441
94.011 Foster Grandparent Program $367,790
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $362,334
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $259,576
17.805 Homeless Veterans Reintegration Project $240,040
16.922 Equitable Sharing Program $213,587
97.111 Regional Catastrophic Preparedness Grant Program (rcpgp) $195,974
16.833 National Sexual Assault Kit Initiative $186,647
16.123 Community-Based Violence Prevention Program $185,265
16.575 Crime Victim Assistance $166,127
16.021 Justice Systems Response to Families $146,392
14.401 Fair Housing Assistance Program_state and Local $134,803
16.529 Education, Training, and Enhanced Services to End Violence Against and Abuse of Women with Disabilities $126,994
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $124,496
97.039 Hazard Mitigation Grant $120,711
93.086 Healthy Marriage Promotion and Responsible Fatherhood Grants $94,909
93.053 Nutrition Services Incentive Program $93,405
97.091 Homeland Security Biowatch Program $88,386
97.044 Assistance to Firefighters Grant $81,672
16.736 Transitional Housing Assistance for Victims of Domestic Violence, Dating Violence, Stalking, Or Sexual Assault $81,095
21.016 Equitable Sharing $80,234
94.016 Senior Companion Program $75,911
94.002 Retired and Senior Volunteer Program $75,098
16.738 Edward Byrne Memorial Justice Assistance Grant Program $74,649
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $65,520
16.606 State Criminal Alien Assistance Program $35,135
16.582 Crime Victim Assistance/discretionary Grants $27,477
20.600 State and Community Highway Safety $22,856
97.067 Homeland Security Grant Program $16,337
97.042 Emergency Management Performance Grants $13,926
20.301 Railroad Safety $8,595
16.710 Public Safety Partnership and Community Policing Grants $5,474
93.568 Low-Income Home Energy Assistance $3,097
97.056 Port Security Grant Program $2,767
97.029 Flood Mitigation Assistance $450