Finding 299 (2022-002)

Significant Deficiency
Requirement
AB
Questioned Costs
$1
Year
2022
Accepted
2023-10-03
Audit: 552
Organization: City of Parlier (CA)

AI Summary

  • Issue: A business loan lacked records verifying employee retention.
  • Requirements Impacted: The City failed to provide necessary documentation for compliance with federal loan requirements.
  • Follow-Up: The City should implement monitoring processes to ensure compliance and maintain updated loan information.

Finding Text

Condition: We noted that one business loan issued during the fiscal year did not have records verifying employee retention. Criteria: The City was unable to provide compliance supporting documentation of the one business loan for the year ended June 30, 2022, specifically verification of employee retention. Cause: Lack of internal controls over compliance requirements for federal expenditures. Effect: Adequate supporting documentation of outstanding loans are not being effectively maintained and archived by City’s personnel. Context: The City was unable to provide verification of employee retention. Repeat Finding: This is a new finding for the fiscal year ended June 30, 2022. Questioned Costs: $30,500 Recommendation: We recommend that the City monitors each loan to ensure that the City maintains the most up-to-date information, and remains in compliance with all necessary requirements of the loan program.

Corrective Action Plan

The city staff managing the business loan will receive training on the job duties, with oversight from the Sr. Revenue Manager. The city is monitoring each loan to ensure that we’re up-to-date with information, and remain in compliance with all necessary requirements of the loan program.

Categories

Questioned Costs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 576741 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $559,078
20.205 Highway Planning and Construction $328,322
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $282,216
16.710 Public Safety Partnership and Community Policing Grants $84,682
14.239 Home Investment Partnerships Program $41,000
16.607 Bulletproof Vest Partnership Program $3,009