Finding 496310 (2023-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-09-10
Audit: 319202
Organization: City of Ingleside, Texas (TX)
Auditor: Abip PC

AI Summary

  • Core Issue: The City failed to include all expenses in the required Project and Expenditure Report for ARP funds during the reporting period.
  • Impacted Requirements: Accurate and complete reporting of ARP funds is mandatory, which was not met due to missing expenses.
  • Recommended Follow-Up: The City should enhance grant management practices, conduct monthly reconciliations, and maintain thorough documentation for each grant.

Finding Text

Finding 2023-III-003 – Federal Reporting Compliance - American Rescue Plan (ARP) Type of Finding – Significant Deficiency Criteria: Accurate and complete Project and Expenditure Reports are required to be submitted on a regular basis for ARP funds. Condition/Cause: Per review of the SEFA and support documentation for the ARP grant funds expended during the reporting period of April 1, 2022 to March 31, 2023, ABIP noted expenses incurred in that period were not included on the required Project and Expenditure Report. Recommendation: We recommend that the City review their grant management policies and procedures as well as the agreement with their third-party grant management company. A reconciliation of grant expenses should be completed monthly. In addition, complete and accurate files should be maintained for each grant so that accurate and complete reporting can be submitted as required. Response: The City will review their grant management policies and procedures and will reconcile grant expenses and revenues monthly. In addition, complete and accurate files will be maintained for each grant so that accurate and complete reporting can be submitted as required. Criteria: Accurate and complete Project and Expenditure Reports are required to be submitted on a regular basis for ARP funds. Condition/Cause: Per review of the SEFA and support documentation for the ARP grant funds expended during the reporting period of April 1, 2022 to March 31, 2023, ABIP noted expenses incurred in that period were not included on the required Project and Expenditure Report. Recommendation: We recommend that the City review their grant management policies and procedures as well as the agreement with their third-party grant management company. A reconciliation of grant expenses should be completed monthly. In addition, complete and accurate files should be maintained for each grant so that accurate and complete reporting can be submitted as required. Response: The City will review their grant management policies and procedures and will reconcile grant expenses and revenues monthly. In addition, complete and accurate files will be maintained for each grant so that accurate and complete reporting can be submitted as required.

Corrective Action Plan

Finding 2023-111-003-Federal Reporting Compliance - American Rescue Plan (ARP) Program Name/Assistance Listing Title: ARP Assistance Listing Number: 21.027 Contact Person: Caron S. Vela, Director of Finance Anticipated Completion Date: March 31, 2025 Planned Corrective Action: Finance staff will update grant management policies and procedures to include monthly or quarterly reconciliations of grant expense and will maintain complete grant files so that an accurate and complete SEFA that ties to the general ledger can be prepared annually for audit and required reporting.

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 496306 2023-001
    Material Weakness
  • 496307 2023-001
    Significant Deficiency
  • 496308 2023-002
    Significant Deficiency
  • 496309 2023-002
    Significant Deficiency
  • 496311 2023-004
    Significant Deficiency
  • 496312 2023-005
    Significant Deficiency
  • 496313 2023-006
    Significant Deficiency
  • 496314 2023-007
    Significant Deficiency
  • 1072748 2023-001
    Material Weakness
  • 1072749 2023-001
    Significant Deficiency
  • 1072750 2023-002
    Significant Deficiency
  • 1072751 2023-002
    Significant Deficiency
  • 1072752 2023-003
    Significant Deficiency
  • 1072753 2023-004
    Significant Deficiency
  • 1072754 2023-005
    Significant Deficiency
  • 1072755 2023-006
    Significant Deficiency
  • 1072756 2023-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $176,676
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $80,820
16.607 Bulletproof Vest Partnership Program $42,368
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $3,364