Finding 481320 (2023-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-08-16

Audit: 317392

Organization: City of Overland Park, Kansas (KS)

Auditor: Rubinbrown LLP

AI Summary

Core Issue: There is no independent review of the quarterly Project and Expenditure Reports before submission, leading to potential inaccuracies.
Impacted Requirements: This finding violates 2 CFR Part 200.514(c), which mandates testing of internal controls over compliance.
Recommended Follow-Up: Implement an independent review process for the quarterly reports to enhance control over reporting accuracy.

Finding Text

Finding No. 2023-002 Significant Deficiency: Reporting - Control Finding ALN 21.027 – Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number: OMB 1505-0271 Year: 2021 Federal Agency: US Department of the Treasury Pass-Through Entity: Not applicable Criteria Or Specific Requirement: 2 CFR Part 200.514(c) requires auditors to test internal control over compliance to support a low assessed level of control risk over compliance. Condition: Audit procedures revealed that there is no independent review of the quarterly Project and Expenditure Reports prior to submission. Cause: The quarterly Project and Expenditure Reports are compiled from internal reports which are aggregated from expenditure information which has been through proper approvals, and the quarterly Project and Expenditure Reports are prepared and submitted without review of the compiled report. Effect: Controls over reporting provisions are not properly designed. Questioned Costs: Not applicable. Context: There is no independent review of the quarterly Project and Expenditure Reports prior to submission. Identification As A Repeat Finding: This is a first-time finding.

Corrective Action Plan

Personnel Responsibile for Corrective Action: Janice Meier, Manager of Financial Services. Anticipated Completion Date: June 2024.Tracking and reporting ARPA expenditures includes many steps: - Assistant City Manager and Law approve projects submitted for use of ARPA funds. - Projects approved for full or partial funding from ARPA funds are approved by City Council as either part of the CIP/MIP budget approval or as a standalone item. - Listing of projects and amounts to be funded by ARPA is provided to Finance Manager. - Contracting - Project Manager notifies the Law Department if the resulting contract is funded by ARPA funds. - Law Department approves contracts as to form (including review of required ARPA language. - Finance Manager reviews expenditures for each project. Expenditures would have been routed to appropriate individuals and approved in the finance system. - Finance Manager determines fuding to be moved to project based on expenditures made and allocated ARPA funds remaining for project. - Project expenditures over the ARPA funding will be funded through other sources. - Finance Manager enters current quarter and life to date information into SLFRF reporting. Second quarter 2024 and future submissions will be approved by the Director of Finance and Budget prior to entering into SLFRF system.

Other Findings in this Audit

481319 2023-001

Significant Deficiency
1057761 2023-001

Significant Deficiency
1057762 2023-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
20.205	Highway Planning and Construction	$3.90M
21.027	Coronavirus State and Local Fiscal Recovery Funds	$2.18M
21.016	Equitable Sharing	$261,572
14.218	Community Development Block Grants/entitlement Grants	$124,430
16.738	Edward Byrne Memorial Justice Assistance Grant Program	$39,239
16.922	Equitable Sharing Program	$38,406
16.710	Public Safety Partnership and Community Policing Grants	$15,470
16.607	Bulletproof Vest Partnership Program	$8,795
20.600	State and Community Highway Safety	$6,527
20.616	National Priority Safety Programs	$6,479