FAC Explorer

Finding 624762 (2022-007)

Significant Deficiency Repeat Finding
Requirement
M
Questioned Costs
-
Year
2022
Accepted
2023-01-31
Audit: 48606
Organization: City of Albuquerque (NM)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The City did not comply with federal subrecipient monitoring regulations and its own policies, leading to significant deficiencies in internal controls.
  • Impacted Requirements: Failure to use the appropriate risk assessment tools and lack of proper monitoring resulted in noncompliance with federal statutes and regulations.
  • Recommended Follow-Up: The City should establish effective controls and update its subrecipient management policies to ensure compliance and proper monitoring practices.

Finding Text

2022 ? 007 (Previously 2021-003) Subrecipient Monitoring (Significant Deficiency and Noncompliance) Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: Pub. L. No. 117-2-2021 Award Period: 5/10/2021 - 12/31/2026 Type of Finding: ? Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: According to ? 200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. According to ? 200.332 Requirements for pass-through entities of 2 CFR Part 200, all pass-through entities must: ? Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. ? Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. ? Verify that every subrecipient is audited as required by Subpart F of this part when it is expected that the subrecipient's Federal awards expended during the respective fiscal year equaled or exceeded the threshold set forth in ? 200.501. ? Consider whether the results of the subrecipient's audits, on-site reviews, or other monitoring indicate conditions that necessitate adjustments to the pass-through entity's own records. According to the City's subrecipient monitoring policies and procedures, monitoring of subrecipients shall be conducted as often as may be required at the discretion of the Community Development Division or at least once per program year. An annual Risk Assessment will be completed to determine a ranking for the activity. The Risk Assessment ranking score will determine whether a monitoring review will occur. Condition: During our testing, it was noted that the City did not follow federal subrecipient monitoring and management regulation nor its subrecipient monitoring policies and procedures. Questioned costs: None 2022 ? 007 (Previously 2021-003) Subrecipient Monitoring (Significant Deficiency and Noncompliance) (Continued) Context: During our testing, we noted the following exceptions: ? For 2 of 4 subrecipients, the City did not utilize the risk assessment tool specific to ARPA which does have a different risk assessment ranking score determining the monitoring of the subrecipient. The City did, however, perform a monitoring visit for the subrecipients. ? For 1 of 4 subrecipients, the City did not utilize the risk assessment tool specific to ARPA. The City utilized the AGA Risk Assessment Monitoring Tool. We noted the following exceptions. ? According to the Introduction of the AGA Risk Assessment Monitoring Tool, while the risk assessment monitoring tool may be useful in supplementing existing tools, it is not intended to replace any risk assessment tools that may already be in use by monitoring agencies. Further, the City omitted the Programmatic Assessment of the AGA Risk Assessment Monitoring Tool. ? According to the Introduction of the AGA Risk Assessment Monitoring Tool, in using the risk assessment tool, monitoring agencies are encouraged to develop applicable risk factors to evaluate programmatic compliance risk and should use professional judgment in developing a weighted scoring system for each component of the assessment. The City did not develop a weighted scoring system for each component of the assessment. ? No evidence of approval of the AGA Risk Assessment Monitoring Tool. ? In the Monitoring/Audit Assessment section of the AGA Risk Assessment Monitoring Tool, the City marked all N/A based on a response of the subrecipient has not needed to complete a single audit in the past. However, the subrecipient did have a single audit for the fiscal year end date of 12/31/2020 with the Federal Audit Clearinghouse receiving the audit report on 5/27/2021. No review of the single audit by the City. Management?s Progress for Repeat Findings: The City Controller reviewed the listing of subrecipient risk assessments for 2022 and the listing was determined to be complete. The City will update the subrecipient monitoring policies and procedures ad provide training to the departments. Cause: The City failed to follow federal subrecipient monitoring and management regulation nor its subrecipient monitoring policies and procedures. Repeat Finding: 2021-003 Effect: The auditor noted instances of noncompliance. Noncompliance results in subrecipients' noncompliance with federal statutes, regulations, and the terms and conditions of the subaward. Recommendation: We recommend the City design controls to ensure compliance with federal subrecipient monitoring and management regulation and its subrecipient monitoring policies and procedures. Management Response: Management agrees with the finding. The City will develop standard City-wide subrecipient management policies and procedures including risk assessment and monitoring tools. Additionally, any federal program with two or more City departments managing subrecipients will use the same subrecipient tools to ensure consistency. Timeline and Responsible Position: June 2023 ? City Controller/DFAS Deputy Director

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 43122 2022-009
    Significant Deficiency
  • 43123 2022-009
    Significant Deficiency
  • 43124 2022-005
    Significant Deficiency
  • 43125 2022-009
    Significant Deficiency
  • 43126 2022-009
    Significant Deficiency
  • 43127 2022-009
    Significant Deficiency
  • 43128 2022-005
    Significant Deficiency
  • 43129 2022-009
    Significant Deficiency
  • 43130 2022-009
    Significant Deficiency
  • 43131 2022-009
    Significant Deficiency
  • 43132 2022-009
    Significant Deficiency
  • 43133 2022-009
    Significant Deficiency
  • 43134 2022-009
    Significant Deficiency
  • 43135 2022-009
    Significant Deficiency
  • 43136 2022-005
    Significant Deficiency
  • 48311 2022-004
    Significant Deficiency Repeat
  • 48312 2022-006
    Significant Deficiency Repeat
  • 48313 2022-006
    Significant Deficiency Repeat
  • 48314 2022-006
    Significant Deficiency Repeat
  • 48315 2022-006
    Significant Deficiency Repeat
  • 48316 2022-008
    Significant Deficiency
  • 48317 2022-004
    Significant Deficiency Repeat
  • 48318 2022-005
    Significant Deficiency
  • 48319 2022-006
    Significant Deficiency Repeat
  • 48320 2022-007
    Significant Deficiency Repeat
  • 48321 2022-008
    Significant Deficiency
  • 619564 2022-009
    Significant Deficiency
  • 619565 2022-009
    Significant Deficiency
  • 619566 2022-005
    Significant Deficiency
  • 619567 2022-009
    Significant Deficiency
  • 619568 2022-009
    Significant Deficiency
  • 619569 2022-009
    Significant Deficiency
  • 619570 2022-005
    Significant Deficiency
  • 619571 2022-009
    Significant Deficiency
  • 619572 2022-009
    Significant Deficiency
  • 619573 2022-009
    Significant Deficiency
  • 619574 2022-009
    Significant Deficiency
  • 619575 2022-009
    Significant Deficiency
  • 619576 2022-009
    Significant Deficiency
  • 619577 2022-009
    Significant Deficiency
  • 619578 2022-005
    Significant Deficiency
  • 624753 2022-004
    Significant Deficiency Repeat
  • 624754 2022-006
    Significant Deficiency Repeat
  • 624755 2022-006
    Significant Deficiency Repeat
  • 624756 2022-006
    Significant Deficiency Repeat
  • 624757 2022-006
    Significant Deficiency Repeat
  • 624758 2022-008
    Significant Deficiency
  • 624759 2022-004
    Significant Deficiency Repeat
  • 624760 2022-005
    Significant Deficiency
  • 624761 2022-006
    Significant Deficiency Repeat
  • 624763 2022-008
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $54.19M
21.023 Emergency Rental Assistance Program $19.60M
20.205 Highway Planning and Construction $4.46M
20.507 Federal Transit_formula Grants $2.99M
21.019 Coronavirus Relief Fund $2.39M
14.239 Home Investment Partnerships Program $2.34M
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $2.17M
11.307 Economic Adjustment Assistance $1.20M
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $1.10M
93.575 Child Care and Development Block Grant $1.02M
93.137 Community Programs to Improve Minority Health Grant Program $1.01M
97.U01 Tsa Law Enforcement Officer Reimbursement Program $682,666
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $673,670
20.106 Airport Improvement Program $637,381
10.559 Summer Food Service Program for Children $537,363
16.034 Coronavirus Emergency Supplemental Funding Program $509,513
97.067 Homeland Security Grant Program $437,844
97.083 Staffing for Adequate Fire and Emergency Response (safer) $419,435
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $396,423
93.997 Assisted Outpatient Treatment $305,689
93.052 National Family Caregiver Support, Title Iii, Part E $270,329
66.001 Air Pollution Control Program Support $250,473
97.072 National Explosives Detection Canine Team Program $211,723
93.053 Nutrition Services Incentive Program $181,544
97.U02 Tsa Law Enforcement Officer Reimbursement Program $153,300
16.738 Edward Byrne Memorial Justice Assistance Grant Program $130,768
94.011 Foster Grandparent Program $123,280
97.024 Emergency Food and Shelter National Board Program $110,839
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $101,680
11.805 Mbda Business Center $99,476
97.042 Emergency Management Performance Grants $97,120
16.833 National Sexual Assault Kit Initiative $86,265
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $77,339
16.741 Dna Backlog Reduction Program $70,122
16.838 Comprehensive Opioid Abuse Site-Based Program $64,373
97.039 Hazard Mitigation Grant $60,673
94.016 Senior Companion Program $57,073
16.575 Crime Victim Assistance $56,207
20.215 Highway Training and Education $56,203
10.558 Child and Adult Care Food Program $55,648
93.600 Head Start $52,964
95.001 High Intensity Drug Trafficking Areas Program $52,821
94.002 Retired and Senior Volunteer Program $51,949
14.231 Emergency Solutions Grant Program $44,459
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $44,105
16.001 Law Enforcement Assistance_narcotics and Dangerous Drugs_laboratory Analysis $42,422
20.500 Federal Transit_capital Investment Grants $42,070
20.600 State and Community Highway Safety $38,965
14.267 Continuum of Care Program $30,132
16.734 Special Data Collections and Statistical Studies $26,018
16.710 Public Safety Partnership and Community Policing Grants $17,942
94.013 Volunteers in Service to America $15,000
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $10,015
81.106 Transport of Transuranic Wastes to the Waste Isolation Pilot Plant: States and Tribal Concerns, Proposed Solutions $7,000
93.074 Hospital Preparedness Program (hpp) and Public Health Emergency Preparedness (phep) Aligned Cooperative Agreements $6,706
66.717 Source Reduction Assistance $4,311
15.904 Historic Preservation Fund Grants-in-Aid $3,022
93.213 Research and Training in Complementary and Integrative Health $3,011
14.218 Community Development Block Grants/entitlement Grants $2,483
16.301 Law Enforcement Assistance_fbi Crime Laboratory Support $486
16.588 Violence Against Women Formula Grants $185