FAC Explorer

Finding 478192 (2022-002)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-07-11
Audit: 314888
Organization: City of Port Arthur (TX)
Auditor: Pattillo Brown & Hill LLP

AI Summary

  • Core Issue: Reports were submitted late and contained errors, indicating a significant deficiency in internal controls.
  • Impacted Requirements: The City must request reimbursements within 90 days and maintain accurate reporting for federal grants.
  • Recommended Follow-Up: Implement new policies and procedures to strengthen internal controls for timely and accurate reporting.

Finding Text

Finding 2022-002: Untimely and Inaccurate Reporting ALNs 20.507, 20.526 – Federal Transit Cluster Federal Agency: U.S. Department of Transportation Type of Finding: Significant Deficiency in Internal Control over Noncompliance and Noncompliance Finding Criteria The City is required to request for reimbursement within 90 days of disbursements. Management is responsible for establishing and maintaining effective internal controls over accurately and timely reporting for grants. Condition During our audit, we noted selected reports were not submitted in a timely manner and contained inaccurate information. Cause The City’s internal controls over reporting accurate information on a timely basis are not adequately designed. Effect or Potential Effect The City may submit inaccurate and/or untimely reports. Recommendation We recommend policies and procedures be put into place to establish effective internal controls surrounding reporting to ensure reports are submitted accurately and timely. Views of Responsible Official(s) and Planned Corrective Actions See corrective action plan.

Corrective Action Plan

Corrective Action Plan There was high turnover in the Finance department in 2022 that left the department short-staffed. The department also underwent significant software changes that involved the use of two systems simultaneously. The Finance department has since grown their team and returned to a single reporting system. Going forward, all internal control policies and procedures surrounding reporting will be reviewed and updated, if necessary, to ensure that future reports are submitted accurately and timely. Person(s) Responsible Director of Finance Controller Anticipated Completion Date An updated policy manual was approved by the City Council on January 17, 2023. New policies and procedures are expected to be fully implemented by October 31, 2024.

Categories

Reporting Cash Management Significant Deficiency

Other Findings in this Audit

  • 478193 2022-002
    Significant Deficiency Repeat
  • 478194 2022-002
    Significant Deficiency Repeat
  • 478195 2022-002
    Significant Deficiency Repeat
  • 478196 2022-002
    Significant Deficiency Repeat
  • 1054634 2022-002
    Significant Deficiency Repeat
  • 1054635 2022-002
    Significant Deficiency Repeat
  • 1054636 2022-002
    Significant Deficiency Repeat
  • 1054637 2022-002
    Significant Deficiency Repeat
  • 1054638 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $2.90M
20.507 Federal Transit_formula Grants $1.95M
14.218 Community Development Block Grants/entitlement Grants $1.30M
21.027 Coronavirus State and Local Fiscal Recovery Funds $845,950
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $646,489
93.268 Immunization Cooperative Agreements $470,153
14.239 Home Investment Partnerships Program $381,022
97.039 Disaster Grants - Public Assistance (presidentially Declared Disasters) $313,596
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $227,550
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $101,617
93.994 Maternal and Child Health Services Block Grant to the States $57,763
93.558 Temporary Assistance for Needy Families $45,164
93.556 Promoting Safe and Stable Families $33,192
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $18,847
93.991 Preventive Health and Health Services Block Grant $15,386
20.600 State and Community Highway Safety $13,378
20.527 Public Transportation Emergency Relief Program $11,320
93.069 Public Health Emergency Preparedness $7,669
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $5,970
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $3,549
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $2,627