Finding 740 (2022-003)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-10-25
Audit: 1395
Organization: City of Baldwin Park (CA)

AI Summary

  • Core Issue: The City failed to comply with federal payroll requirements, leading to unsupported allocations for employee costs across multiple grant programs.
  • Impacted Requirements: Payroll charges were based on unverified management percentages, lacking proper time tracking and reconciliation to actual work performed.
  • Recommended Follow-Up: Implement a robust time tracking system and update cost allocation methods to ensure compliance with federal guidelines.

Finding Text

Community Development Block Grants-Entitlement Grants Cluster We determined the City did not comply with federal requirements for direct payroll charges. Payroll costs for all eight employees tested were allocated to programs based on percentages provided by management. These allocations were not supported by approved time samples or updated cost allocation methods/plan, nor were they reconciled to actual time spent on the various programs. Employee timesheets did not record the actual labor efforts expended on these grants. . During our testing of payroll expenditures, 40 of the 40 payroll charges non-statistically sampled were based on payroll budget allocations. Housing Voucher Cluster We determined the City did not comply with federal requirements for direct payroll charges. Payroll costs for all six employees tested were allocated to programs based on percentages provided by management. These allocations were not supported by approved time samples or updated cost allocation methods/plan, nor were they reconciled to actual time spent on the various programs. Employee timesheets did not record the actual labor efforts expended on these grants. During our testing of payroll expenditures, 25 of the 25 payroll charges non-statistically sampled were based on payroll budget allocations. Coronavirus State and Local Fiscal Recovery Funds One out of 40 samples selected for testing that staff was not able to provide the personal action form for the auditors to verify the employee title and step in order to verify the pay rate against to the adopted salary schedule.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 739 2022-003
    Significant Deficiency
  • 741 2022-003
    Significant Deficiency
  • 742 2022-004
    Significant Deficiency
  • 743 2022-005
    Material Weakness Repeat
  • 744 2022-005
    Material Weakness Repeat
  • 745 2022-006
    Material Weakness Repeat
  • 746 2022-007
    Significant Deficiency Repeat
  • 577181 2022-003
    Significant Deficiency
  • 577182 2022-003
    Significant Deficiency
  • 577183 2022-003
    Significant Deficiency
  • 577184 2022-004
    Significant Deficiency
  • 577185 2022-005
    Material Weakness Repeat
  • 577186 2022-005
    Material Weakness Repeat
  • 577187 2022-006
    Material Weakness Repeat
  • 577188 2022-007
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $6.63M
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.21M
14.218 Community Development Block Grants/entitlement Grants $915,852
16.922 Equitable Sharing Program $96,106
97.067 Homeland Security Grant Program $51,368
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $37,122
14.850 Public and Indian Housing $36,399
14.239 Home Investment Partnerships Program $32,856
20.223 Transportation Infrastructure Finance and Innovation Act (tifia) Program $21,749
20.600 State and Community Highway Safety $19,509
16.738 Edward Byrne Memorial Justice Assistance Grant Program $19,433