FAC Explorer

Finding 397710 (2023-001)

- Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-05-17
Audit: 306563
Organization: City of Arcata (CA)
Auditor: Jjacpa INC

AI Summary

  • Core Issue: The City missed the deadline for completing the audit and submitting required reports as mandated by Section 200.512(a).
  • Impacted Requirements: Failure to meet audit completion and reporting deadlines jeopardizes compliance with federal guidelines.
  • Recommended Follow-up: The City should establish clear policies and procedures to ensure timely audits and consider increasing accounting staff hours to meet deadlines.

Finding Text

CFDA Title and Number: Community Development Block Grants/State’s Program and Non- Entitlement Grants in Hawaii Federal Agency: U.S. Department of Housing and Urban Development Pass-through Entity: State of California Department of Housing and Community Development Year: 2023 CFDA Title and Number: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-through Entity: State of California Department of Housing and Community Development Year: 2023. Criteria: Section 200.512(a) of the Uniform Guidance states that an audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Condition: The City did not complete the audit and submit the data collection form and reporting package within nine months after the end of the fiscal year. Questioned Costs: None Context: The City did not complete its audit of the annual financial statements until after the deadline had passed. Effect or Potential Effect: The City did not meet the audit requirements as provided in Section 200.512(a). Cause: The City did not have policies and procedures in place to have the financial audit completed by the deadline. Recommendation: The City should implement policies and procedures to have the financial audit completed by the deadline. Responsible Official’s Response and Corrective Action Planned: Management will file the audited financial statements for the year ended June 30, 2023, as soon as possible. The City developed procedures, including a fiscal year-end closing schedule to assist in meeting the timeliness requirements of Section 200.512(a) of the Uniform Guidance. The City has identified the need for additional accounting staff hours to complete the procedures outlined in the fiscal year-end closing schedule.

Corrective Action Plan

Name of contact person and title: Tabatha Miller, Finance Director Anticipated completion date: May 15, 2024 Auditee’s response: Concur Planned Corrective Action: Management will file the audited financial statements for the year ended June 30, 2023, as soon as possible. The City developed procedures, including a fiscal year-end closing schedule to assist in meeting the timeliness requirements of Section 200.512(a) of the Uniform Guidance. The City has identified the need for additional accounting staff hours to complete the procedures outlined in the fiscal year-end closing schedule.

Categories

Subrecipient Monitoring Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.36M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $809,638
20.205 Highway Planning and Construction $515,917
14.239 Home Investment Partnerships Program $142,115
97.039 Hazard Mitigation Grant $42,834
15.630 Coastal Program $14,243
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $4,574