Finding 387801 (2023-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-28
Audit: 299850
Organization: City of Temecula (CA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The City failed to keep records showing who reviewed and approved required reports before submission.
  • Impacted Requirements: This violates 2 CFR 200.303, which mandates effective internal controls for managing Federal awards.
  • Recommended Follow-Up: Revise procedures to ensure documentation of report review and approval is consistently maintained.

Finding Text

2023-002 Program: Community Development Block Grants/Entitlement Grants Cluster Financial Assistance Listing Number: 14.218 Federal Agency: U.S. Department of Housing and Urban Development Award Year: All Grant Award Number: All Compliance Requirements: Reporting Type of Finding: Material Weakness in Internal Control over Compliance Criteria: Per 2 CFR 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. This includes internal controls over maintaining records of the preparer and approver of required reports. Condition: We identified three (3) instances in which the City did not retain evidence to document the individual who reviewed and approved the required reports prior to submission. This consisted of two (2) financial reports and one (1) special report for the Federal Funding Accountability and Transparency Act (FFATA). Cause: The City's procedures did not include documenting the review and approval of the reports prior to submission. Effect: Ineffective controls over this area of compliance could result in reports that are inaccurate or incomplete being submitted or disclosed to the granting agency. Questioned Costs: No questioned costs were identified as a result of our audit procedures. Context/Sampling: FFATA - Sampling was not used. We selected all FFATA reports (1) for testing. The condition noted above was identified during our procedures over reporting testing. Cash on Hand Reports - Sampling was used. We selected two (2) of four (4) Cash on Hand reports for testing. The condition noted above was identified during our procedures over reporting testing. Repeat Finding from the Prior Year(s): No. Recommendation: We recommend that the City revise its procedures to include evidence to document the individual who reviewed and approved required reports prior to submission. View of Responsible Official and Planned Corrective Actions See separate corrective action plan.

Categories

Material Weakness Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 387792 2023-001
    Material Weakness
  • 387793 2023-002
    Material Weakness
  • 387794 2023-001
    Material Weakness
  • 387795 2023-002
    Material Weakness
  • 387796 2023-001
    Material Weakness
  • 387797 2023-002
    Material Weakness
  • 387798 2023-001
    Material Weakness
  • 387799 2023-002
    Material Weakness
  • 387800 2023-001
    Material Weakness
  • 387802 2023-001
    Material Weakness
  • 387803 2023-002
    Material Weakness
  • 387804 2023-001
    Material Weakness
  • 387805 2023-002
    Material Weakness
  • 387806 2023-001
    Material Weakness
  • 387807 2023-001
    Material Weakness
  • 387808 2023-001
    Material Weakness
  • 387809 2023-001
    Material Weakness
  • 387810 2023-001
    Material Weakness
  • 387811 2023-003
    Material Weakness
  • 387812 2023-004
    Material Weakness
  • 964234 2023-001
    Material Weakness
  • 964235 2023-002
    Material Weakness
  • 964236 2023-001
    Material Weakness
  • 964237 2023-002
    Material Weakness
  • 964238 2023-001
    Material Weakness
  • 964239 2023-002
    Material Weakness
  • 964240 2023-001
    Material Weakness
  • 964241 2023-002
    Material Weakness
  • 964242 2023-001
    Material Weakness
  • 964243 2023-002
    Material Weakness
  • 964244 2023-001
    Material Weakness
  • 964245 2023-002
    Material Weakness
  • 964246 2023-001
    Material Weakness
  • 964247 2023-002
    Material Weakness
  • 964248 2023-001
    Material Weakness
  • 964249 2023-001
    Material Weakness
  • 964250 2023-001
    Material Weakness
  • 964251 2023-001
    Material Weakness
  • 964252 2023-001
    Material Weakness
  • 964253 2023-003
    Material Weakness
  • 964254 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $7.04M
20.934 Nationally Significant Freight and Highway Projects $2.77M
14.218 Covid-19 Community Development Block Grants/entitlement Grants $277,239
14.218 Community Development Block Grants/entitlement Grants $175,481
97.067 Homeland Security Grant Program $12,894
20.205 Highway Planning and Construction $869