FAC Explorer

Finding 393399 (2022-007)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-04-16
Audit: 303639
Organization: City of El Monte (CA)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: Reports for the Coronavirus State and Local Fiscal Recovery Funds were prepared and reviewed by the same person, leading to a significant deficiency in internal controls.
  • Impacted Requirements: Best practices dictate that a supervisory-level individual, separate from the report preparer, should review reports for accuracy and completeness.
  • Recommended Follow-Up: Implement a process where a different supervisory-level person reviews all reports to prevent undetected errors.

Finding Text

Federal Agency: U.S. Department of Treasury Federal Program Titles: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Numbers: 21.027 Award Period: July 1, 2021, to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Criteria or Specific Requirement: As a best practice, a supervisory-level person, other than the preparer of a report, should review reports to ensure accuracy and completeness of data and information in the reports. Condition: Program reports were prepared and reviewed by the same individual. Questioned Costs: None. Context: 4 of 4 reports tested. Cause: Controls were not properly designed to assign someone other than the preparer of the reports to review them. Effect: Errors in reporting could go undetected. Recommendation: We recommend that reports be reviewed by a supervisory-level person who is not the preparer of the reports.

Corrective Action Plan

New procedures have been established to ensure the separation of duties and responsibility between the individuals who prepare grant reporting and the individuals who review the reports. Grant reports will be prepared by one individual and reviewed by supervisory-level staff personnel prior to the submission of the report.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 393396 2022-005
    Material Weakness
  • 393397 2022-006
    Significant Deficiency
  • 393398 2022-006
    Significant Deficiency
  • 969838 2022-005
    Material Weakness
  • 969839 2022-006
    Significant Deficiency
  • 969840 2022-006
    Significant Deficiency
  • 969841 2022-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.205 Highway Planning and Construction $1.68M
16.922 Equitable Sharing Program $1.22M
14.239 Home Investment Partnerships Program $938,335
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $791,671
14.218 Community Development Block Grants/entitlement Grants $399,914
14.231 Emergency Solutions Grant Program $265,675
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $101,455
97.067 Homeland Security Grant Program $100,000
21.016 Equitable Sharing $99,757
21.027 Coronavirus State and Local Fiscal Recovery Funds $97,225
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $96,509
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $91,519
66.202 Congressionally Mandated Projects $86,629
21.019 Coronavirus Relief Fund $61,883
20.616 National Priority Safety Programs $56,300
20.600 State and Community Highway Safety $38,271
93.053 Nutrition Services Incentive Program $12,086
16.738 Edward Byrne Memorial Justice Assistance Grant Program $4,965