Finding 606553 (2022-004)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 34563
Organization: City of Rialto (CA)

AI Summary

  • Core Issue: The City submitted the Project and Expenditure report late, missing the August 19, 2022 deadline set by the Department of Treasury.
  • Impacted Requirements: Timely reporting of financial data for federal awards over $50,000 is mandated, with a strict 30-day submission window after the reporting period.
  • Recommended Follow-Up: The City should establish a process to ensure all federal reports are submitted on time to avoid future noncompliance.

Finding Text

Finding 2022-004: Timeliness of Grant Reporting Noncompliance/Significant Deficiency Federal Award Information: Assistance Listing Number: 21.027 Program Title: Coronavirus State and Local Fiscal Recovery Funds Award Years: 2021 Name of Federal Agency: U.S. Department of Treasury Criteria: For Projects funded, expenditures, and contracts and subawards over $50,000, the Department of Treasury requires the recipients to report on financial data and submit the Project and Expenditure Reports 30 days after the period end. Condition: The City submitted the Project and Expenditure report for the reporting period April 1, 2022 through June 30, 2022 on August 22, 2022, which was after the filing deadline. Cause of Condition: The City initially submitted the Project and Expenditure report for the reporting period April 1, 2022 through June 30, 2022 on July 27, 2022 by the required deadline on July 27, 2022. However, the Department of Treasury contacted the City requesting them to correct the report since the cumulative obligations reported exceeded the acceptable limits. The City was provided with a new deadline of August 19, 2022 but submitted the report on August 22, 2022. Effect or Possible Effect: Unknown Questioned Costs: No questioned costs were identified ($0). Context: The Project and Expenditure report for the reporting period January 1, 2022 through March 31, 2022 was submitted by the required deadline. The City was aware of the required deadline; however, the City reported total cumulative obligations as higher that their total allocations and was asked to update their obligations to be within the acceptable limits. Repeat Finding: No Recommendation: We recommend that the City implement a process to ensure that all federal reports are submitted in a timely manner. Management?s Response and Corrective Action: Management agrees with the recommendation and recognizes the importance of timely reporting. Since the City has utilized all the federal funding as of June 30, 2022 and has been submitting a zero-request report for all quarters after.

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting Significant Deficiency

Other Findings in this Audit

  • 30111 2022-004
    Significant Deficiency
  • 30112 2022-003
    Significant Deficiency Repeat
  • 30113 2022-005
    Significant Deficiency
  • 30114 2022-003
    Significant Deficiency Repeat
  • 30115 2022-005
    Significant Deficiency
  • 606554 2022-003
    Significant Deficiency Repeat
  • 606555 2022-005
    Significant Deficiency
  • 606556 2022-003
    Significant Deficiency Repeat
  • 606557 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $29.37M
14.218 Community Development Block Grants/entitlement Grants $378,382
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $126,760
20.600 State and Community Highway Safety $97,497
16.710 Public Safety Partnership and Community Policing Grants $72,064
97.067 Homeland Security Grant Program $40,326
20.616 National Priority Safety Programs $21,400