Finding 28424 (2022-004)

Material Weakness

Requirement

Questioned Costs

Year

2022

Accepted

2023-09-25

Audit: 33233

Organization: City of Rapid City (SD)

Auditor: Ketel Thorstenson LLP

AI Summary

Core Issue: The City lacks a proper review process for expenditures related to the CSLFRF program, leading to potential misallocation of funds.
Impacted Requirements: Timely reimbursement requests are not being submitted, which could affect cash flow and compliance with federal reporting standards.
Recommended Follow-Up: Implement a review process for expenditure allocations and ensure reimbursement requests are submitted promptly.

Finding Text

Finding No. 2022-004: Tracking Federal Grant Funding Federal Program Affected: Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) ? AL# 21.027 Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: The City does not have a proper review process for the CSLFRF program expenditures allocated between the various grant agreements. In addition, reimbursement requests are not completed timely. Criteria and Effect: A lack of proper controls over federal expenditures could result in charging expenditures to multiple federal awards or ?double-dipping? of CSLFRF grant monies and improper reporting on the schedule of expenditures of federal awards. Timely reimbursement requests reduce the cash flow burden on the City. Recommendation: The City should implement a process for reviewing expenditure allocations between separate CSLFRF grants and submit reimbursement requests as soon as administratively feasible. Repeat Finding from Prior Year: N/A Response/Corrective Action Plan: The City agrees with the above finding. See Corrective Action Plan.

Corrective Action Plan

Finding No. 2022-004: Tracking Federal Grant Funding Coronavirus State and Fiscal Local Recovery Fund (CSLFRF) Responsible Officials: Daniel Ainslie, Finance Director, Dave Yuhas, Deputy Finance Director - Grants/Financial Reporting and Eduardo Lopez - Operations Engineering Manager Corrective Action Plan: The City will implement a process in which CSLFRF reimbursements will be processed and submitted no later than 60 (sixty) days after end of quarter. The Finance depai1ment will review the expenditure allocations on these reimbursements and track the federal, state and loan portions of these reimbursement to ensure each area is tracked and report correctly. Anticipated Completion Date: Quarter ending September 30, 2023

Other Findings in this Audit

604866 2022-004

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
20.106	Airport Improvement Program	$2.62M
21.027	Coronavirus State and Local Fiscal Recovery Funds	$962,161
20.507	Federal Transit_formula Grants	$564,082
97.083	Staffing for Adequate Fire and Emergency Response (safer)	$406,899
16.817	Byrne Criminal Justice Innovation Program	$378,004
20.505	Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research	$313,176
14.225	Community Development Block Grants/special Purpose Grants/insular Areas	$288,810
16.710	Public Safety Partnership and Community Policing Grants	$136,642
16.738	Edward Byrne Memorial Justice Assistance Grant Program	$93,850
94.002	Retired and Senior Volunteer Program	$80,000
97.047	Pre-Disaster Mitigation	$77,579
15.228	Blm Fuels Management and Community Fire Assistance Program Activities	$76,258
20.703	Interagency Hazardous Materials Public Sector Training and Planning Grants	$67,937
66.605	Performance Partnership Grants	$55,506
39.003	Donation of Federal Surplus Personal Property	$54,546
16.609	Project Safe Neighborhoods	$47,810
14.218	Community Development Block Grants/entitlement Grants	$41,136
20.930	Payments for Small Community Air Service Development	$37,397
97.067	Homeland Security Grant Program	$34,922
15.904	Historic Preservation Fund Grants-in-Aid	$20,000
16.607	Bulletproof Vest Partnership Program	$16,448
16.045	Community-Based Violence Intervention and Prevention Initiative	$15,696
16.575	Crime Victim Assistance	$15,211
10.698	State & Private Forestry Cooperative Fire Assistance	$12,500
10.664	Cooperative Forestry Assistance	$5,813