FAC Explorer

Finding 743 (2022-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-10-25
Audit: 1395
Organization: City of Baldwin Park (CA)
Auditor: The Pun Group LLP

AI Summary

  • Core Issue: The City failed to submit required reports on time, including Cash on Hand Quarterly Reports and Section 15011 Reports.
  • Impacted Requirements: Timeliness of report submissions for Community Development Block Grants and Housing Voucher Cluster, specifically the Financial Data Schedule and VMS reports.
  • Recommended Follow-Up: Establish internal controls to ensure timely submission and review of all required reports before they are sent to HUD.

Finding Text

As a result of our test work, we noted the following exceptions: Community Development Block Grants-Entitlement Grants Cluster The City did not submit the required Cash on Hand Quarterly Report in a timely manner. The quarterly Cash on Hand Quarterly Report for the reporting period ended September 30, 2021 was submitted on Nov 1, 2021 and for the reporting period ended March 31, 2022 was submitted on May 4, 2022. The City did not submit any of the four (4) quarterly Section 15011 Reports for the year ended June 30, 2022. Housing Voucher Cluster The audited Financial Data Schedule (FDS) for the fiscal year ended June 30, 2022 was not submitted on or before the March 31, 2023 due date. We also noted for 4 out of 4 VMS reports tested, there was no evidence of review and approval prior to submission to HUD. We noted the City does not have internal controls designed to review the VMS report prior to submission. A nonstatistical sample of 4 out of 12 VMS reports were selected for test work.

Corrective Action Plan

Corrective Actions: The City will update the Federal Awards Administration Policy and Procedures to include procedures and proper internal control systems to ensure Cash on Hand Quarterly Reports, VMS report, and audited Financial Data Schedule are reported accurately & timely with documentation of approval. Name of Responsible Person: Ron Garcia, Director of Community Development Imelda Delgado, Housing Manager Rose Tam, Director of Finance Albert Trinh, Accounting Manager Projected Implementation Date: Immediately implemented the procedure and will update the existing policy by December 2023.

Categories

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 739 2022-003
    Significant Deficiency
  • 740 2022-003
    Significant Deficiency
  • 741 2022-003
    Significant Deficiency
  • 742 2022-004
    Significant Deficiency
  • 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