Finding 39953 (2022-003)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 37900
Organization: City of Laguna Hills (CA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The City has a significant deficiency in internal controls, specifically regarding the lack of evidence for the review of the SEFA.
  • Impacted Requirements: This finding violates Title 2 CFR Section 200.303(a), which mandates effective internal controls over federal awards.
  • Recommended Follow-Up: The City should implement procedures to ensure that evidence of review for the SEFA is consistently documented.

Finding Text

Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Financial Assistance Listing Number: 21.027 Federal Agency: U.S. Department of Treasury Award Year: 2021/22 Grant Number: N/A Compliance Requirement: Other Type of Finding: Significant Deficiency in Internal Control Criteria: Title 2 CFR Section 200.303(a) of the Uniform Guidance requires all non-federal entities establish and maintain effective internal control over federal awards to provide reasonable assurance that the non-federal entity is managing the federal award in compliance with the federal statutes, regulations, and the terms and conditions of the federal award. Condition: During the audit, it was noted the preparation of the schedule of expenditures of federal awards (SEFA) lacked evidence of review. Cause: The City?s internal controls did not allow for evidence of review of the SEFA. Effect: The SEFA lacked evidence of review, which increases the risk of error or misstatement. Questioned Costs: None reported. Context: The condition was noted during our procedures related to internal controls over the SEFA. Repeat Finding from Prior Year: No Recommendation: We recommend the City establish procedures to ensure evidence of review exists over the SEFA. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.

Corrective Action Plan

Finding 2022-003 Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Financial Assistance Listing Number: 21.027 Federal Agency: U.S. Department of Treasury Finding Summary: Review of SEFA Responsible Individuals: Eric Hendrickson, Finance Director Corrective Action Plan: The Finance Department will prepare the SEFA and have it reviewed by the appropriate higher authority prior to submitting the document to the auditors. Anticipated Completion Date: 06/30/2023

Categories

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 39954 2022-004
    Significant Deficiency
  • 616395 2022-003
    Significant Deficiency
  • 616396 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $3.74M
97.047 Pre-Disaster Mitigation $10,652
21.019 Covid-19 Coronavirus Relief Fund $3,609