Finding 620054 (2022-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 43908
Organization: City of Rancho Cordova (CA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The City failed to report subawards as required by FFATA, leading to late filings.
  • Impacted Requirements: Compliance with 2 CFR Part 170 for timely and accurate reporting of subawards.
  • Recommended Follow-Up: Strengthen reporting processes, implement a review system for FFATA reports, and document all reviews before submission.

Finding Text

Finding 2022-001 Program/Cluster: CDBG-Entitlement Grants Cluster CFDA Number: 14.218 Federal Agency: U.S. Department of Housing and Urban Development Pass-through: N/A Award No. and Year: B-14-MC-06-0063 (2014), B-18-MC-06-0063 (2018), B-19-MC-06-0063 (2019), B-20-MC-06-0063 (2020), B-21-MC-06-0063 (2021) and COVID ? 19 B-20-MW-06-0063 (2020) Compliance Requirement: Reporting Type of Finding: Material Weakness in Internal Control over Compliance, Instance of Non-Compliance Criteria: 2 CFR Part 170 establishes requirements for recipients? reporting of information on subawards as required by the Federal Funding Accountability and Transparency Act of 2006 (FFATA) to be reported no later than the last day of the month following the month in which the subaward/obligation was made, or the subcontract award was made. Condition: We noted that the City did not report information on subawards as required by FFATA. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 5 - 5 - - Dollar Amount of Tested Transactions Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $503,366 - $503,366 - - Cause: Management implemented new internal controls after the due date of the applicable reports. Effect: The filings were late. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: We tested five (5) out of five (5) first tier subawards awarded during the fiscal year. Repeat Finding from Prior Year(s): Yes. Recommendation: We recommend that management strengthen their processes and procedures related to the submission of the required FFATA reports to ensure compliance with the program requirements. We also recommend that management establish documented review of the required FFATA reports by an individual other than the preparer prior to submission and retain record of the review and submission. Views of Responsible Officials: Management?s Response: See separate corrective action plan.

Categories

Reporting Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness

Other Findings in this Audit

  • 43611 2022-001
    Material Weakness Repeat
  • 43612 2022-001
    Material Weakness Repeat
  • 620053 2022-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.019 Covid-19 Coronavirus Relief Fund $2.23M
14.218 Community Development Block Grants/entitlement Grants $1.13M
14.218 Covid-19 Community Development Block Grants/entitlement Grants $312,979
20.614 National Highway Traffic Safety Administration (nhtsa) Discretionary Safety Grants $18,821
20.205 Highway Planning and Construction $595