FAC Explorer

Finding 47427 (2022-002)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 53528
Organization: City of Chattanooga, Tennessee (TN)
Auditor: Henderson Hutcherson & McCullough PLLC

AI Summary

  • Core Issue: The City recorded grant expenditures that did not meet eligibility requirements.
  • Impacted Requirements: Compliance with grant eligibility criteria was not followed, leading to ineligible payments.
  • Recommended Follow-Up: Update the software to prevent it from overriding department-coded transactions.

Finding Text

Finding 2022-002 Condition: The City recorded grant expenditures that did not meet eligibility requirements. Cause: The department tried charging expenditures to a non-grant fund, but the system overrode the transaction and coded it to the grant fund. Criteria: Following of compliance requirements. Effect: Two payments were made to beneficiaries that were ineligible to receive benefits under the grant. Recommendation: Make changes to the software to ensure it will not override costs when they are being recorded by a department. Views of the Responsible Officials: The officials concur with the finding. Corrective Action Plan: See letter provided by management.

Corrective Action Plan

2022-02 Federal Award Findings and Questioned Costs Person Responsible for Implementing the Corrective Action; Brian Smart, Manager of Financial Operations Anticipated Completion Date for Corrective Action; June 30, 2023 Planned Corrective Action: The ERP system that was put into place in fiscal year 2022 had an override in the payables module that the City was unaware of. After discovering this, the City has put policies and procedures into place to prevent these errors in fiscal year 2023 and beyond. Also, reporting has been developed for a more thorough review of postings to the grants. Additionally, since the end of fiscal year 2022, we have hired a group that is responsible for grants and grants compliance.

Categories

Eligibility

Other Findings in this Audit

  • 623869 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
66.458 Capitalization Grants for Clean Water State Revolving Funds $20.71M
93.600 Head Start $12.35M
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.13M
93.568 Low-Income Home Energy Assistance $2.75M
14.218 Community Development Block Grants/entitlement Grants $2.10M
15.928 Civil War Battlefield Land Acquisition Grants $1.89M
14.239 Home Investment Partnerships Program $1.16M
93.569 Community Services Block Grant $922,461
20.205 Highway Planning and Construction $833,779
94.011 Foster Grandparent Program $469,668
66.001 Air Pollution Control Program Support $332,527
45.310 Grants to States $307,500
16.575 Crime Victim Assistance $298,143
97.067 Homeland Security Grant Program $297,935
16.582 Crime Victim Assistance/discretionary Grants $207,782
14.231 Emergency Solutions Grant Program $195,352
16.738 Edward Byrne Memorial Justice Assistance Grant Program $186,179
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $149,451
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $130,000
20.607 Alcohol Open Container Requirements $119,948
93.137 Community Programs to Improve Minority Health Grant Program $104,943
10.923 Emergency Watershed Protection Program $22,897
16.034 Coronavirus Emergency Supplemental Funding Program $8,796
97.044 Assistance to Firefighters Grant $7,304
16.528 Enhanced Training and Services to End Violence and Abuse of Women Later in Life $35