Finding 568826 (2024-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-06-29
Audit: 360552
Organization: City of Huntsville (AL)

AI Summary

  • Core Issue: The City overstated 3rd and 4th quarter expenditures by $1,000,000 and underreported total obligations by $5,339,923 due to management oversight.
  • Impacted Requirements: The City failed to comply with reporting requirements, leading to inaccuracies in the ERA program's financial reporting.
  • Recommended Follow-Up: Establish clear reporting responsibilities and processes to ensure timely and accurate submissions in the future.

Finding Text

Condition and Context: During our testing of the quarterly reporting requirements for the City’s ERA program, we noted the 3rd and 4th quarter expenditures reported were overstated by $1,000,000. This was an advance payment made to a subrecipient to carry out the program activities, but had not been disbursed to the beneficiaries as of September 30, 2024. Additionally, the City was under reporting the total obligations as of September 30, 2024 by $5,339,923. Cause: Per review of the ERA2 Compliance report for Quarter 3 (Quarter 4 for the City) the amount reported as expenditures did not match the amount actually expensed by sub-recipients. This was due to oversight by the program management for the ERAP program. Effects: The City was not in compliance with the reporting requirements. The City discussed the errors with the representative from the grantor and, in accordance with program guidance, was told to correct the reporting of obligations on the quarterly reports filed in the following fiscal year. Questioned Costs: None. Recommendation: We recommend the City take necessary steps in the future to ensure that those responsible for the program are aware of reporting requirements and have a process in place to ensure that all reports and submissions are completed and submitted timely. We recommend that reporting responsibilities be clearly communicated and delegated to one or two individuals. Auditee’s Response: We concur with the auditors findings. We will implement policies and procedures to ensure grant activity is reported in accordance with the grant requirements and are submitted timely and accurately.

Categories

Subrecipient Monitoring Cash Management Reporting

Other Findings in this Audit

  • 568825 2024-002
    Significant Deficiency
  • 1145267 2024-002
    Significant Deficiency
  • 1145268 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $2.93M
20.507 Federal Transit Formula Grants $1.04M
21.027 Coronavirus State and Local Fiscal Recovery Funds $839,264
20.205 Highway Planning and Construction $624,677
21.023 Emergency Rental Assistance Program $342,453
66.001 Air Pollution Control Program Support $341,525
14.889 Choice Neighborhoods Implementation Grants $270,555
14.850 Public Housing Operating Fund $132,837
95.001 High Intensity Drug Trafficking Areas Program $132,046
14.218 Community Development Block Grants/entitlement Grants $100,736
14.231 Emergency Solutions Grant Program $100,020
97.067 Homeland Security Grant Program $88,511
14.239 Home Investment Partnerships Program $85,565
14.267 Continuum of Care Program $38,996
16.726 Juvenile Mentoring Program $25,516
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $18,715
97.042 Emergency Management Performance Grants $5,669
15.904 Historic Preservation Fund Grants-in-Aid $4,500