Finding 538677 (2024-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-03-27
Audit: 349415
Organization: City of Vernon (CA)

AI Summary

  • Core Issue: The six-month programmatic progress report for the Minority HIV/AIDS Fund was submitted late, missing the April 30, 2024 deadline.
  • Impacted Requirements: This delay indicates noncompliance with federal reporting requirements, specifically the obligation to submit timely progress reports.
  • Recommended Follow-up: The City should enhance internal controls by appointing backup personnel and creating contingency plans to ensure timely report submissions, even amid third-party disputes.

Finding Text

Identification of the Federal Program: Assistance Listing Number: 93.899 Assistance Listing Title: Minority HIV/AIDS Fund (MHAF) Federal Agency: U.S. Department of Health and Human Services Pass-through Entity: N/A Federal Award Identification Number: 1H79TI087013-01 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Programmatic Progress Report – Portable Clinical Care Pilot Project recipients are required to submit a six month progress report due no later than 30 days after the end of the second quarter. The due date of the March 31, 2024 report is April 30, 2024. Condition: During our audit, we noted that the six month programmatic progress report was not submitted by the required deadline by April 30, 2024. It was submitted on May 20, 2024. Cause: The delay in submitting the six month programmatic progress report was due to a dispute between the City and its consultant, which resulted in the consultant not submitting the required report on time. Additionally, the City did not have a contingency plan in place to address such situation. Effect or Potential Effect: Delay in filing the report resulted in noncompliance with the reporting compliance requirement. 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 strengthen its internal control for reporting obligations, considering the appointment of backup personnel, or establish contingency plans to ensure timely submission of the required reports, regardless of any third-party challenges, or obtain extension from grantor. Views of Responsible Officials: Management concurs the finding.

Corrective Action Plan

The City acknowledges the finding related to the missed federal grant reporting deadline, which was due to untimeliness by the prior grant subcontractor and a related contract dispute. To address this issue and prevent future occurrences, the City has engaged a new subcontractor with clearly defined contract terms, including specific deadlines and accountability measures for grant reporting. Additionally, the City has implemented enhanced internal controls, such as periodic progress reviews, increased oversight by the grant administrator, and contingency plans to ensure timely submissions regardless of external vendor challenges.

Categories

Reporting Subrecipient Monitoring

Other Findings in this Audit

  • 1115119 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.899 Minority Hiv/aids Fund (mhaf) $217,413
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $114,000
20.616 National Priority Safety Programs $66,268
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $55,396
20.205 Highway Planning and Construction $45,117
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $25,312
20.600 State and Community Highway Safety $21,201