FAC Explorer

Finding 966239 (2023-003)

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Requirement
A
Questioned Costs
-
Year
2023
Accepted
2024-03-29
Audit: 300693
Organization: City of Roanoke, Virginia (VA)
Auditor: Brown Edwards & CO

AI Summary

  • Core Issue: A revenue loss calculation for federal funds was understated by about $4.8 million due to unsupported figures.
  • Impacted Requirements: The City did not comply with federal grant rules regarding accurate revenue loss reporting, risking potential funding issues.
  • Recommended Follow-Up: Implement a verification process to ensure all revenue figures match the transmittal form, with multiple reviews for accuracy.

Finding Text

2023-003: Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing #21.027, Disbursements Condition: During our review of the locality’s revenue loss calculation, it was noted that one revenue figure was not supported by the City’s transmittal form causing the lost revenue available for the City to claim to be understated by approximately $4.8 million. Criteria: Under the Final Rule, recipients can elect a one-time “standard allowance” of $10 million (not to exceed the recipient’s award amount) to spend on the “provision of government services” during the period of performance. Alternatively, recipients can calculate lost revenue for the years 2020, 2021, 2022, and 2023 based on the formula provided in the Final Rule to determine the amount of SLFRF funds that can be used for the “provision of government services.” According to the OMB Compliance Supplement section 4-21.027 section III B, recipients can choose whether to use calendar or fiscal year dates but must be consistent through the period of the performance and must provide auditors with evidence supporting their revenue loss calculation. Cause: The calculation of revenue loss was performed by staff who was new to their role with the City. All figures agreed with the Auditor of Public Accounts (APA) transmittal except for one section. Supervisory review was performed but did not detect the inconsistency in the calculation with reported figures on the APA transmittal form. Effect: Noncompliance with federal grant requirements with regard to lost revenue, understating the available revenue loss the City can utilize. Questioned Cost Amount: Not applicable. Perspective Information: Not applicable Recommendation: We recommend that a process be put in place that ties out all amounts used on the lost revenue calculation to amounts on the transmittal form. View of Responsible Officials and Planned Corrective Action: Management concurs with the recommendation and will ensure that the APA transmittal is used for future calculations as necessary. The calculation will be subject to multiple reviews. A final ARPA revenue loss calculation is planned for the spring that will incorporate the updated revenue loss figures from fiscal year 2023 ACFR and update the reporting figures in the fiscal year 2022 ACFR. The City’s plan for ARPA spending currently does not plan to utilize the entire revenue loss funds but instead seeks to spend on specific projects that are ARPA eligible.

Categories

Period of Performance Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.659 Adoption Assistance $5.52M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $3.03M
59.075 Shuttered Venue Operators Grant Program $2.16M
93.658 Foster Care_title IV-E $1.78M
93.667 Social Services Block Grant $1.68M
93.778 Medical Assistance Program $1.63M
93.558 Temporary Assistance for Needy Families $1.55M
14.218 Community Development Block Grants/entitlement Grants $725,046
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing $652,896
17.258 Wia Adult Program $523,716
17.260 Wia Dislocated Workers $453,128
20.205 Highway Planning and Construction $413,389
17.259 Wia Youth Activities $381,434
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $355,948
93.568 Low-Income Home Energy Assistance $312,687
14.239 Home Investment Partnerships Program $286,071
14.267 Continuum of Care Program $246,887
21.027 Coronavirus State and Local Fiscal Recovery Funds $240,277
97.067 Homeland Security Grant Program $214,641
16.575 Crime Victim Assistance $174,154
20.600 State and Community Highway Safety $166,614
93.556 Promoting Safe and Stable Families $134,304
93.498 Provider Relief Fund $122,654
14.231 Emergency Solutions Grant Program $117,406
45.024 Promotion of the Arts_grants to Organizations and Individuals $99,400
93.566 Refugee and Entrant Assistance_state Administered Programs $58,685
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $56,147
16.607 Bulletproof Vest Partnership Program $44,502
16.588 Violence Against Women Formula Grants $29,485
84.287 Twenty-First Century Community Learning Centers $29,122
93.747 Elder Abuse Prevention Interventions Program $25,570
93.472 Title IV-E Prevention and Family Services and Programs (a) $24,209
16.606 State Criminal Alien Assistance Program $22,500
93.767 Children's Health Insurance Program $15,690
10.559 Summer Food Service Program for Children $11,629
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $10,453
93.090 Guardianship Assistance $10,197
93.599 Chafee Education and Training Vouchers Program (etv) $9,465
10.555 National School Lunch Program $7,282
93.603 Adoption Incentive Payments $3,852
16.738 Edward Byrne Memorial Justice Assistance Grant Program $3,080
93.645 Stephanie Tubbs Jones Child Welfare Services Program $2,476