FAC Explorer

Finding 46604 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-22
Audit: 40943
Organization: City of Rancho Mirage (CA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The City of Rancho Mirage inaccurately reported expenditure information in its annual Project and Expenditure Report.
  • Impacted Requirements: Compliance with 2 CFR 200.329(b) was not met, as reports lacked accurate accounting and performance records.
  • Recommended Follow-up: Enhance internal controls to ensure future reports align with program requirements.

Finding Text

Federal Agency: U.S. Department of the Treasury Federal Financial Assistance Listing: 21.027 Program Name: COVID-19: Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance, Instance of Non-compliance Criteria: 2 CFR 200.329(b) requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with program requirements. The City of Rancho Mirage (the City) must submit an annual Project and Expenditure Report that contains costs incurred during the covered period. Critical information includes: ? Obligations and Expenditures o Current period obligation o Cumulative obligation o Current period expenditure o Cumulative expenditure ? Subawards ? Detailed information on any loans issued; contracts and grants awarded; transfers made to other government entities; and direct payments made by the recipient that are greater than $50,000. For amounts less than $50,000, the recipient must report in the aggregate for these same categories of loans issued; contracts and grants awarded; transfers made to other government entities and direct payments made by the recipient. Condition: Expenditure information was reported inaccurately. Cause: The City?s control did not ensure the annual Project and Expenditure Report was prepared in accordance with governing requirements. Effect: Inaccurate information was reported to the federal awarding agency. Questioned Costs: None reported. Context/Sampling: The entire population of one annual Project and Expenditure Report submitted during the year was selected for testing. Repeat Finding from Prior Year: No Recommendation: We recommend the City enhance internal controls to ensure Project and Expenditure Reports are prepared in accordance with program requirements. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.

Corrective Action Plan

FINDING 2022-001 Program: COVID-19: Coronavirus State and Local Fiscal Recovery Funds CFDA No.: 21.027 Federal Grantor: United States Department of the Treasury Passed-through: N/A Award No. and Year: Various Compliance Requirements: Reporting Management?s or Department?s Response: We concur. Views of Responsible Officials and Corrective Action: The City reported expenditures for the entire award amount based on the guidance available at the time of the initial reporting period for the award. This resulted in over reporting expenditures for the audit period since only half of the award was remitted to the City during the period under audit. The City has put measures in place to ensure only expenditures for the amount received in a particular period are reported. Name of Responsible Person: Kofi Antobam, Director of Administrative Services Implementation Date: June 30, 2022

Categories

Subrecipient Monitoring Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 623046 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $2.22M
20.205 Highway Planning and Construction $75,011