FAC Explorer

Finding 575127 (2022-004)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2025-08-28
Audit: 365226
Organization: City of Davis (CA)
Auditor: Maze & Associates

AI Summary

  • Core Issue: The City failed to provide required documentation to prevent duplication of benefits for CDBG-CV funded projects.
  • Impacted Requirements: Compliance with CDBG-CV regulations mandating records to show no other financial assistance is available for funded activities.
  • Recommended Follow-Up: City staff should create procedures to ensure all CDBG-CV projects include the necessary duplication of benefits certification.

Finding Text

Finding Reference Number: SA 2022-004 Duplication of Benefits Compliance Documentation AL Number: 14.218 Assistance Listing Title: CDBG - Entitlement Grants Cluster – Community Development Block Grants/Entitlement Grants COVID-19 - Community Development Block Grants/Entitlement Grants-CV Federal Agency: Department of Housing and Urban Development Federal Award Identification Number: B-14-MC-06-0037, B-15-MC-06-0037, B-16-MC-06-0037, B-17-MC-06-0037, B-18-MC-06-0037, B-19-MC-06-0037, B-20-MC-06-0037, B-20-MW-06-0037, B-21-MC-06-0037 Criteria: All CDBG-CV grantees are required to establish and maintain adequate procedures to prevent any duplication of benefits for assisted activities (as discussed in Section III.B.9. of the CDBG-CV Notice). To demonstrate that no financial assistance has been received or is available to pay costs charged to a CDBG-CV grant, a grantee may demonstrate that no other funds are available for an activity by maintaining records of compliance with mandatory duplication of benefits requirements described in Section III.B.9. Condition: It appears the City did develop a policy to address duplication of benefits per our review of the City's Duplication of Benefits Policy & Procedures document that includes a certification form to be used for applicable projects. We requested a copy of the certification for the Davis Emergency Shelter project funded by the CDBG-CV funding and City staff was unable to locate the certification. Effect: The City is not in compliance with the duplication of benefits documentation requirements to ensure no financial assistance has been received or is available to pay costs charged to a CDBG-CV grant. Cause: We understand that City staff in charge of the project are no longer with the City, so current City staff are unable to determine whether the duplication of benefits certification required by the City’s policy was completed. Identification as a Repeat Finding: Yes, since 2021 Recommendation: City staff should develop procedures to ensure that CDBG-CV grant-funded projects documentation includes the duplication of benefits certification. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.

Corrective Action Plan

Finding Reference Number: SA 2022-004 Duplication of Benefits Compliance Documentation AL Number: 14.218 Assistance Listing Title: CDBG - Entitlement Grants Cluster – Community Development Block Grants/Entitlement Grants COVID-19 - Community Development Block Grants/Entitlement Grants-CV Federal Agency: Department of Housing and Urban Development Federal Award Identification Number: B-14-MC-06-0037, B-15-MC-06-0037, B-16-MC-06-0037, B-17-MC-06-0037, B-18-MC-06-0037, B-19-MC-06-0037, B-20-MC-06-0037, B-20-MW-06-0037, B-21-MC-06-0037 • Fiscal Year of Initial Finding: 2021 • Name(s) of the contact person: Kelly Stachowicz, Interim City Manager • Corrective Action Plan: As of June 30, 2024, the City attempted to implement its completed Duplication of Benefits policy and complete certifications as needed for grants made with a one-time CDBG-CV funding. However, none of the responsible officials are with the subrecipient organization. The City will ensure that any future grants with this requirement have completed certifications. • Anticipated Completion Date: June 30, 2024

Categories

No categories assigned yet.

Other Findings in this Audit

  • 575124 2022-001
    Material Weakness Repeat
  • 575125 2022-002
    Material Weakness Repeat
  • 575126 2022-003
    Material Weakness Repeat
  • 575128 2022-005
    Material Weakness
  • 575129 2022-006
    Material Weakness
  • 575130 2022-001
    Material Weakness Repeat
  • 575131 2022-002
    Material Weakness Repeat
  • 575132 2022-003
    Material Weakness Repeat
  • 575133 2022-004
    Material Weakness Repeat
  • 575134 2022-005
    Material Weakness
  • 575135 2022-006
    Material Weakness
  • 575136 2022-007
    Significant Deficiency
  • 575137 2022-008
    Significant Deficiency
  • 575138 2022-009
    Significant Deficiency
  • 575139 2022-009
    Significant Deficiency
  • 575140 2022-009
    Significant Deficiency
  • 1151566 2022-001
    Material Weakness Repeat
  • 1151567 2022-002
    Material Weakness Repeat
  • 1151568 2022-003
    Material Weakness Repeat
  • 1151569 2022-004
    Material Weakness Repeat
  • 1151570 2022-005
    Material Weakness
  • 1151571 2022-006
    Material Weakness
  • 1151572 2022-001
    Material Weakness Repeat
  • 1151573 2022-002
    Material Weakness Repeat
  • 1151574 2022-003
    Material Weakness Repeat
  • 1151575 2022-004
    Material Weakness Repeat
  • 1151576 2022-005
    Material Weakness
  • 1151577 2022-006
    Material Weakness
  • 1151578 2022-007
    Significant Deficiency
  • 1151579 2022-008
    Significant Deficiency
  • 1151580 2022-009
    Significant Deficiency
  • 1151581 2022-009
    Significant Deficiency
  • 1151582 2022-009
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.08M
20.507 Federal Transit Formula Grants $2.83M
20.205 Highway Planning and Construction $1.57M
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $1.06M
14.218 Community Development Block Grants/entitlement Grants $302,823
14.235 Supportive Housing Program $78,419
93.569 Community Services Block Grant $65,437
14.239 Home Investment Partnerships Program $50,355
97.029 Flood Mitigation Assistance $32,249
59.075 Shuttered Venue Operators Grant Program $9,361
15.904 Historic Preservation Fund Grants-in-Aid $5,000
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $2,112