Finding 554299 (2024-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-04-07
Audit: 352902
Organization: City of San Bruno (CA)

AI Summary

  • Core Issue: The City failed to submit required quarterly Performance and Expenditure Reports due to management turnover and lack of awareness of reporting requirements.
  • Impacted Requirements: Compliance with the State and Local Fiscal Recovery Funds guidance, specifically for cities receiving over $10 million in funding.
  • Recommended Follow-Up: Ensure new management is trained on compliance requirements to prevent future reporting lapses.

Finding Text

2024-01 – Reporting (Significant Deficiency) Program: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027, U.S. Department of Treasury, Direct Program Criteria: Per the State and Local Fiscal Recovery Funds Compliance and Reporting Guidance, metropolitan cities with a population below 250,000 that are allocated more than $10 million in State and Local Fiscal Recovery Funds are required to submit Performance and Expenditure Reports (P&E Reports) quarterly. Internal controls over reporting compliance should ensure accurate, complete, and timely submission of all required reports. Condition: Management that tracked and submitted the P&E Reports left the City in August 2022, and new management was not aware of the requirement nor received correspondence from the U.S. Department of Treasury (Treasury). Effect: The City did not submit any of the required quarterly P&E Reports to the Treasury for the period that covered July 1, 2023 through September 30, 2023. Questioned Costs: None Repeat Finding: This is the continuation of finding 2023-04. Correction was implemented January 31, 2024. Recommendation: None Management’s Response: This is resolved.

Corrective Action Plan

The City will develop, document, and implement a formal year-end closing process and audit preparedness policy and procedures. The responsibilities, deliverables, and deadlines will be clearly outlined and communicated to all staff members. The City remedied the delinquent ARPA SLFRF quarterly P&E Report to the Treasury in January 2024, covering July 1, 2022, through December 31, 2023. Management intends to fully expend the remaining ARPA SLFRF award in FY24 and file the required quarterly P&E Reports in April 2024 and the final report in July 2024.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 554300 2024-002
    Significant Deficiency Repeat
  • 1130741 2024-001
    Significant Deficiency
  • 1130742 2024-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.74M
97.039 Hazard Mitigation Grant $802,910
16.922 Equitable Sharing Program $247,805
97.044 Assistance to Firefighters Grant $95,455
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $91,683
20.600 State and Community Highway Safety $38,061
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $32,410
20.205 Highway Planning and Construction $22,378
93.053 Nutrition Services Incentive Program $22,334
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $8,182
21.019 Coronavirus Relief Fund $6,917
45.310 Grants to States $2,938
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $262