Finding 387074 (2023-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-28
Audit: 299391
Organization: Cit of Richmond (CA)
Auditor: Ahmed Badawi

AI Summary

  • Core Issue: The City failed to ensure that the Q2 2023 Project and Expenditure Report matched its accounting records.
  • Impacted Requirements: Quarterly reports must accurately reflect financial data to prevent misrepresentation.
  • Recommended Follow-Up: The City should promptly update the report to align with the revised fund allocations and maintain consistency with financial records.

Finding Text

SA2023-002: Failure to Comply with Reporting Requirements Assistance Listing Numbers: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: U.S. Department of Treasury Criteria: The grant requires the submitted quarterly reports to be agreed to the City’s accounting records, ensuring the accuracy and completeness of the reports. Condition: On the Project and Expenditure Report for Q2 2023 (April-June), the North Richmond Pump Station total cumulative expenditures cannot be traced to the City’s accounting records. Cause: The City modified the allocation of the funds subsequent to the submission the report. Context and Effect: The discrepancy between the report and the accounting record introduces a risk of misrepresentation and misinterpretation of financial data. The modified use of funds without corresponding adjustments in accounting records may lead to misunderstandings in the oversight entities. Recommendation: We recommend the City update the report timely to reflect the revised allocation of the funds, ensuring the consistency between the Project and Expenditure Report and the financial records. Management Response: The City will address the misalignment by reporting the revised and accurate information in the upcoming quarterly report.

Corrective Action Plan

The City will address the misalignment by reporting the revised and accurate information in the upcoming quarterly report.

Categories

Allowable Costs / Cost Principles Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 387073 2023-001
    Significant Deficiency
  • 963515 2023-001
    Significant Deficiency
  • 963516 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.44M
12.612 Community Base Reuse Plans, Project Grant/cooperative Agreement $504,575
17.277 Workforce Investment Act (wia) National Emergency Grants $458,623
17.258 Wia Adult Program $313,062
17.259 Wia Youth Activities $240,186
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $210,368
17.274 Youthbuild $168,185
66.815 Environmental Workforce Development and Job Training Cooperative Agreements $75,498
84.002A Workforce Innovation and Opportunity $50,944
17.278 Wia Dislocated Worker Formula Grants $42,518
15.904 Historic Preservation Fund Grants-in-Aid $17,500
32.009 Emergency Connectivity Fund Program $14,033
20.205 Highway Planning and Construction $1,932