FAC Explorer

Finding 8725 (2021-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2024-01-17
Audit: 11871
Organization: City of Port Arthur (TX)
Auditor: Pattillo Brown & Hill LLP

AI Summary

  • Core Issue: The City failed to submit reports for federal grants on time and with accurate information.
  • Impacted Requirements: Timely reimbursement requests must be made within 90 days, and effective internal controls are necessary for accurate reporting.
  • Recommended Follow-Up: Implement new policies and procedures to strengthen internal controls for timely and accurate reporting.

Finding Text

Section 3. Federal Award Findings and Questioned Costs Finding 2021-002: Untimely and Inaccurate Reporting ALNs 20.507 and 20.526– Federal Transit Cluster Federal Agency: U.S. Department of Transportation Type of Finding: Significant Deficiency in Internal Control over Noncompliance and Noncompliance Finding Criteria The City is required to request for reimbursement within 90 days of disbursements. Management is responsible for establishing and maintaining effective internal controls over accurately and timely reporting for grants. Condition During our audit, we noted selected reports were not submitted in a timely manner and contained inaccurate information. Cause The City’s internal controls over reporting accurate information on a timely basis are not adequately designed. Effect or Potential Effect The City may submit inaccurate and/or untimely reports. Recommendation We recommend policies and procedures be put into place to establish effective internal controls surrounding reporting to ensure reports are submitted accurately and timely. Views of Responsible Official(s) and Planned Corrective Actions See corrective action plan.

Corrective Action Plan

Finding: 2021-002: Untimely and Inaccurate Reporting Corrective Action Plan Internal control policies and procedures surrounding reporting will be reviewed and updated, if necessary, to ensure that future reports are submitted accurately and timely. Person(s) Responsible Director of Finance Controller Anticipated Completion Date An updated policy manual was approved by the City Council on January 17,2023. New policies and procedures are expected to be fully implemented by March 31, 2024.

Categories

Reporting Cash Management Significant Deficiency

Other Findings in this Audit

  • 8726 2021-002
    Significant Deficiency
  • 8727 2021-002
    Significant Deficiency
  • 8728 2021-002
    Significant Deficiency
  • 8729 2021-002
    Significant Deficiency
  • 8730 2021-002
    Significant Deficiency
  • 8731 2021-002
    Significant Deficiency
  • 8732 2021-002
    Significant Deficiency
  • 8733 2021-002
    Significant Deficiency
  • 585167 2021-002
    Significant Deficiency
  • 585168 2021-002
    Significant Deficiency
  • 585169 2021-002
    Significant Deficiency
  • 585170 2021-002
    Significant Deficiency
  • 585171 2021-002
    Significant Deficiency
  • 585172 2021-002
    Significant Deficiency
  • 585173 2021-002
    Significant Deficiency
  • 585174 2021-002
    Significant Deficiency
  • 585175 2021-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $1.89M
14.218 Community Development Block Grants/entitlement Grants $1.13M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.06M
11.307 Economic Adjustment Assistance $1.01M
97.039 Hazard Mitigation Grant $943,990
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $649,708
93.558 Temporary Assistance for Needy Families $616,728
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $582,647
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $180,950
93.991 Preventive Health and Health Services Block Grant $153,903
20.507 Federal Transit_formula Grants $137,460
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $120,624
20.526 State and Community Highway Safety $118,429
93.069 Public Health Emergency Preparedness $94,257
93.994 Maternal and Child Health Services Block Grant to the States $68,881
14.239 Home Investment Partnerships Program $44,277
97.067 Homeland Security Grant Program $39,966
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $17,466
20.600 State and Community Highway Safety $11,853
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $8,253
21.019 Coronavirus Relief Fund $3,552
20.527 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $3,097