Finding 512115 (2023-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-11-25
Audit: 329858
Organization: City of Calumet City (IL)
Auditor: Crowe LLP

AI Summary

  • Core Issue: Quarterly reports filed did not include all grant-related expenses, leading to an understatement of expenditures.
  • Impacted Requirements: The City failed to meet grant agreement obligations for accurate semi-annual and quarterly reporting.
  • Recommended Follow-Up: Implement a formal review process to ensure cumulative amounts are accurately reported and have separate individuals prepare and review performance reports.

Finding Text

Finding 2023-002: Reporting Federal Program Information: Public Safety Partnership and Community Policing Grants, ALN #16.710 Criteria: According to the grant agreement, to assist the COPS Office in monitoring and tracking the performance of the award, the City is responsible for submitting semi-annual programmatic progress reports that describe project activities during the reporting period and quarterly Federal Financial Reports using Standard Form 425 (SF-425). Condition: The quarterly reports that were filed did not contain all expenses related to the grant. Context: The progress report is used to track the City’s progress toward implementing community policing strategies and to collect data to gauge the effectiveness of increasing the City’s community policing capacity through COPS Office funding. There was no formal review process in place for the performance reports. The reports are completed by the Police department grant facilitator who receives input from the Police Chief or the Assistant Police Chief but no formal documentation. The Federal Financial Report is used to track the expenditures of the recipient’s award funds on a cumulative basis throughout the life of the award. The cumulative amount of the federal share of expenditures was under-reported on the quarterly reports that were filed during the fiscal year. All expenditures were not included within the total. This incorrectly calculated on the report the amount of the unobligated balance of the grant. The City resubmitted the reports when the error was identified. Questioned Cost: None Effect: The quarterly reporting understated the expenditures for the grant and overstated the unobligated balance. Cause: The preparer of the report was unaware that the amount reported for expenditures should be cumulative. Repeat Finding: No Recommendation: We recommend that the secondary review of the reports verify that the amount being presented on the report is the cumulative amount. Additionally, we recommend that the performance report be prepared and reviewed by separate individuals and have that be formally documented.

Corrective Action Plan

The City will review its policies and procedures and implement changes to strengthen internal control over federal reporting. Furthermore, the City will adequately document claimed expenditures that are consistent with the terms and conditions of each grant agreement. The City will have reports prepared and reviewed by separate individuals.

Categories

Reporting

Other Findings in this Audit

  • 1088557 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
16.922 Equitable Sharing Program $589,931
16.710 Public Safety Partnership and Community Policing Grants $567,512
97.044 Assistance to Firefighters Grant $497,562
20.600 State and Community Highway Safety $396,126
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $113,481
97.083 Staffing for Adequate Fire and Emergency Response (safer) $28,653
16.738 Edward Byrne Memorial Justice Assistance Grant Program $16,311
21.027 Coronavirus State and Local Fiscal Recovery Funds $9,017
16.034 Coronavirus Emergency Supplemental Funding Program $5,679