Finding 963516 (2023-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-28
Audit: 299391
Organization: Cit of Richmond (CA)
Auditor: Ahmed Badawi

AI Summary

  • Core Issue: The City failed to ensure that the Q2 2023 Project and Expenditure Report matched its accounting records.
  • Impacted Requirements: Quarterly reports must accurately reflect financial data to prevent misrepresentation.
  • Recommended Follow-Up: The City should promptly update the report to align with the revised fund allocations and maintain consistency with financial records.

Finding Text

SA2023-002: Failure to Comply with Reporting Requirements Assistance Listing Numbers: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: U.S. Department of Treasury Criteria: The grant requires the submitted quarterly reports to be agreed to the City’s accounting records, ensuring the accuracy and completeness of the reports. Condition: On the Project and Expenditure Report for Q2 2023 (April-June), the North Richmond Pump Station total cumulative expenditures cannot be traced to the City’s accounting records. Cause: The City modified the allocation of the funds subsequent to the submission the report. Context and Effect: The discrepancy between the report and the accounting record introduces a risk of misrepresentation and misinterpretation of financial data. The modified use of funds without corresponding adjustments in accounting records may lead to misunderstandings in the oversight entities. Recommendation: We recommend the City update the report timely to reflect the revised allocation of the funds, ensuring the consistency between the Project and Expenditure Report and the financial records. Management Response: The City will address the misalignment by reporting the revised and accurate information in the upcoming quarterly report.

Categories

Allowable Costs / Cost Principles Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 387073 2023-001
    Significant Deficiency
  • 387074 2023-002
    Significant Deficiency
  • 963515 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.44M
12.612 Community Base Reuse Plans, Project Grant/cooperative Agreement $504,575
17.277 Workforce Investment Act (wia) National Emergency Grants $458,623
17.258 Wia Adult Program $313,062
17.259 Wia Youth Activities $240,186
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $210,368
17.274 Youthbuild $168,185
66.815 Environmental Workforce Development and Job Training Cooperative Agreements $75,498
84.002A Workforce Innovation and Opportunity $50,944
17.278 Wia Dislocated Worker Formula Grants $42,518
15.904 Historic Preservation Fund Grants-in-Aid $17,500
32.009 Emergency Connectivity Fund Program $14,033
20.205 Highway Planning and Construction $1,932