Finding 500392 (2023-003)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-09-30
Audit: 323158
Organization: City of Greeley (CO)

AI Summary

  • Core Issue: The City lacks adequate internal controls over federal award reporting, leading to misclassification of expenses.
  • Impacted Requirements: Compliance with 2 CFR 200.303(a) and internal control standards is not being met.
  • Recommended Follow-up: Implement stronger controls and ensure the new Grants Manager reviews all financial and performance reports before submission.

Finding Text

Assistance Listing, Federal Agency, and Program Name - 15.507, WaterSMART Sustaining and Manage America’s Resources for Tomorrow Federal Award Identification Number and Year - R22AP00523-00 Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition - Controls in place were not adequate to ensure expenses were reported in the proper categories on the performance reports. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - During reporting testing, we noted no expenses were reported in the federal expenses line item of the two reports tested. Cause and Effect - While the City did have controls in place around reporting and allowability of expenses, they were not sufficient to ensure expenses were properly reported on the correct lines As a result, reports were not in compliance. Recommendation - We recommend the City ensure the effectiveness of controls to ensure expenditures get reported properly. Views of Responsible Officials and Corrective Action Plan - The City hired a full-time Grants Manager in February 2024 to establish procedures to track grants that are awarded and expended by the City. New procedures will be developed to ensure that financial and performance reports for grants will be reviewed by the Grants Manager prior to submission of the reports to the awarding entities. Documentation of this review will be retained with the grant documents.

Corrective Action Plan

Finding Number: 2023-003 Condition: Related to the WaterSMART grant (ALN 15.507), controls in place were not adequate to ensure expenses were reported in the proper categories on the performance reports. Planned Corrective Action: The City hired a full-time Grants Manager in February 2024 to establish procedures to track grants that are awarded and expended by the City. New procedures will be developed to ensure that financial and performance reports for grants will be reviewed by the Grants Manager prior to submission of the reports to the awarding entities. Documentation of this review will be retained with the grant documents. Contact person responsible for corrective action: Stacey Swanson, Grant & Special Revenue Manager Anticipated Completion Date: December 31, 2024

Categories

Subrecipient Monitoring Material Weakness Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 500393 2023-004
    Material Weakness
  • 500394 2023-004
    Material Weakness
  • 500395 2023-004
    Material Weakness
  • 500396 2023-005
    Material Weakness
  • 500397 2023-005
    Material Weakness
  • 500398 2023-005
    Material Weakness
  • 1076834 2023-003
    Material Weakness
  • 1076835 2023-004
    Material Weakness
  • 1076836 2023-004
    Material Weakness
  • 1076837 2023-004
    Material Weakness
  • 1076838 2023-005
    Material Weakness
  • 1076839 2023-005
    Material Weakness
  • 1076840 2023-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
15.507 Watersmart (sustain and Manage America's Resources for Tomorrow) $1.24M
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $931,967
14.218 Covid-19 - Community Development Block Grants/entitlement Grants $678,287
14.218 Community Development Block Grants/entitlement Grants $678,211
14.239 Home Investment Partnerships Program $369,734
97.047 Bric: Building Resilient Infrastructure and Communities $334,702
20.205 Highway Planning and Construction $246,656
95.001 High Intensity Drug Trafficking Areas Program $156,529
16.575 Crime Victim Assistance $138,492
16.922 Equitable Sharing Program $137,776
97.067 Homeland Security Grant Program $134,198
93.575 Child Care and Development Block Grant $129,691
10.923 Emergency Watershed Protection Program $127,087
20.600 State and Community Highway Safety $28,847
97.039 Hazard Mitigation Grant $28,643
16.738 Edward Byrne Memorial Justice Assistance Grant Program $16,146
15.904 Historic Preservation Fund Grants-in-Aid $10,153
16.543 Missing Children's Assistance $8,618
20.616 National Priority Safety Programs $5,769
20.614 National Highway Traffic Safety Administration (nhtsa) Discretionary Safety Grants and Cooperative Agreements $4,827
16.607 Bulletproof Vest Partnership Program $1,530