Finding 485191 (2023-005)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-08-27
Audit: 318000
Organization: City of Stockton (CA)

AI Summary

  • Core Issue: The City failed to submit any of the four required quarterly Section 15011 Reports for the year ending June 30, 2023, leading to noncompliance.
  • Impacted Requirements: Reports must include all activities, funding details, and project descriptions as mandated by the OMB Compliance Supplement and CARES Act guidance.
  • Recommended Follow-Up: The City should research reporting requirements, contact the grantor for clarification, and request extensions if reports cannot be submitted on time.

Finding Text

2023-005 – Reporting – Internal Control and Compliance over Reporting Information of the Federal Program(s): Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grants-Entitlement Grants Cluster Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-20-MW-06-0026 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): The OMB Compliance Supplement requires that reports submitted to the Federal awarding agency include all activity of the reporting period, are supported by underlying accounting information and are presented in accordance with program requirements. Pursuant to Guidance on Section 15011 of the CARES Act requires that recipients of $150,000 or more of CARES Act funding submit, not later than 10 days after the end of each calendar quarter, a report containing: information regarding the amount of funds received; the amount of funds obligated or expended for each project or activity; a detailed list of all such projects or activities, including a description of the project or activity; and detailed information on any subcontracts or subgrants awarded by the recipient. This report is limited to Community Development Block Grants/Entitlement Grants Cluster - COVID-19 funding and does not include other Community Development Block Grants/Entitlement Grants Cluster funds that may be used to address coronavirus. Grantees and subrecipients have reported data meeting the Section 15011 requirements at usaspending.gov. The Pandemic Response Accountability Committee (PRAC), an independent oversight committee within the Council of the Inspectors General on Integrity and Efficiency, has determined that the data reported in usaspending.gov has fulfilled these reporting requests. (“Section 15011 Report”). Condition: As a result of our test work, we noted that the City did not submit any of the four (4) quarterly Section 15011 Reports for the year ended June 30, 2023. Cause: The City was not aware of the Section 15011 CARES reporting. Effect or Potential Effect: Delay in filing and not filing the reports resulted in noncompliance with the compliance requirements, which can result in errors going undetected by management. Questioned Costs: None. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not Applicable. Recommendation: We recommend that the City conduct thorough research on the reports needed to be submitted and contact the grantor if there is any confusion. When a report cannot be submitted by the due date, the City should request an extension from the funding agency and maintain a record of the approval. Views of Responsible Officials: Management concurs with the finding.

Corrective Action Plan

City’s Corrective Action Plan: This is pandemic-related funding with limited guidance on reporting requirements. However, the City has tracked all expenditures and retained documentation for allowable costs. The City will maintain supporting documentation when a federal or grantor agency allows for an extension or removes any reporting requirement. The City will centralize reporting requirements to assist in verifying compliance is met. Responsible Person: Carrie Wright (Director of Economic Development), Jennifer Winn (Grants Manager) Expected Implementation Date: September 2024

Categories

Subrecipient Monitoring Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 485187 2023-003
    Significant Deficiency
  • 485188 2023-003
    Significant Deficiency
  • 485189 2023-003
    Significant Deficiency
  • 485190 2023-003
    Significant Deficiency
  • 485192 2023-003
    Significant Deficiency
  • 485193 2023-006
    Significant Deficiency Repeat
  • 485194 2023-003
    Significant Deficiency
  • 485195 2023-006
    Significant Deficiency Repeat
  • 485196 2023-003
    Significant Deficiency
  • 485197 2023-006
    Significant Deficiency Repeat
  • 485198 2023-004
    Material Weakness Repeat
  • 485199 2023-004
    Material Weakness Repeat
  • 485200 2023-004
    Material Weakness Repeat
  • 1061629 2023-003
    Significant Deficiency
  • 1061630 2023-003
    Significant Deficiency
  • 1061631 2023-003
    Significant Deficiency
  • 1061632 2023-003
    Significant Deficiency
  • 1061633 2023-005
    Significant Deficiency
  • 1061634 2023-003
    Significant Deficiency
  • 1061635 2023-006
    Significant Deficiency Repeat
  • 1061636 2023-003
    Significant Deficiency
  • 1061637 2023-006
    Significant Deficiency Repeat
  • 1061638 2023-003
    Significant Deficiency
  • 1061639 2023-006
    Significant Deficiency Repeat
  • 1061640 2023-004
    Material Weakness Repeat
  • 1061641 2023-004
    Material Weakness Repeat
  • 1061642 2023-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.958 Water Infrastructure Finance and Innovation (wifia) (e) $108.00M
21.019 Coronavirus Relief Fund $2.78M
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.25M
97.083 Staffing for Adequate Fire and Emergency Response (safer) $1.37M
14.231 Emergency Solutions Grant Program $889,971
16.753 Congressionally Recommended Awards $410,914
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $186,954
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $163,683
21.023 Emergency Rental Assistance Program $157,845
20.600 State and Community Highway Safety $139,917
14.239 Home Investment Partnerships Program $43,873
16.034 Coronavirus Emergency Supplemental Funding Program $42,348
16.123 Community-Based Violence Prevention Program $31,683
16.738 Edward Byrne Memorial Justice Assistance Grant Program $16,840
97.044 Assistance to Firefighters Grant $13,899
14.218 Community Development Block Grants/entitlement Grants $1,007
20.205 Highway Planning and Construction $495
59.059 Congrssional Earmarks Initiative $283