EIN: 446000201
UEI: JY2DYJXPQW56
Data as of August 20, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on January 22, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by July 22, 2026, which was (29 days ago).
What is a management decision? →Finding 2025-003 (Material Weakness) Program: Housing Opportunities for Persons with AIDS Federal Agency: United States Department of Housing and Urban Development (HUD) AL #: 14.241 Federal Award Identification Number and Year: Various – See SEFA Pass-through Entity: N/A Type of Compliance Finding: M) Subrecipient Monitoring Criteria Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals (2 CFR sections 200.332(d) through (f)). Condition The City did not provide evidence supporting compliance with this requirement. Cause The City failed to 1) evaluate the results of subrecipient’s previous audits including whether or not the subrecipient received a single audit in accordance with 2 CFR Part 200, Subpart F, and the extent to which the same or similar subaward was audited as a major program; and 2) have the Subrecipient address the identified findings in the contract monitoring report according to the response timeframe outlined in the report; to ensure quality programming that benefits the clients. Effect The City may not be compliant with HUD, which could result in the City not receiving federal assistance or repayment of grant funds. Questioned Costs None Context N/A Is the finding a repeat finding No Recommendations We recommend the City ensure Subrecipients respond to all corrective action plans by the required timeframes outlined and ensure all subrecipients are monitored as stated in the Federal regulations and City’s policy. Views of Responsible Officials / Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization’s letterhead.
Corrective Action Plan: The Finance Department Grants Reporting team will update the City’s grants manual to include additional information on subrecipient monitoring including what documentation is necessary consistent with the requirements in 2 CFR Part 200, Subpart F. The Grants Reporting team will train department grant managers on the subrecipient monitoring process and its importance and review progress with subrecipient monitoring quarterly with the applicable departments. Persons(s) Responsible for Implementation: William Rand, Financial Manager, Health Department, (816) 513-6353, Email: william.rand@kcmo.org, Cristen Huntz, Financial Analyst, Finance Department, (816) 513-1148, Email: cristen.huntz@kcmo.org, and Robin Flaherty, Financial Manager, Finance Department, (816) 513-1202, Email: robin.flaherty@kcmo.org. Implementation Date: The anticipated implementation date is April 30, 2026.
. Finding 2025-004 (Material Weakness) Program: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: United States Department of Treasury AL #: 21.027 Federal Award Identification Number and Year: Various – See SEFA Pass-through Entity: N/A Type of Compliance Finding: A) Activities Allowed or Unallowed and B) Allowable Costs/Cost Principles Criteria Recipients may use SLFRF payments for any eligible expenses subject to the restrictions set forth in sections 602 / 603 of the Social Security Act as added by section 9901 of the American Rescue Plan Act of 2021, codified at 42 USC sections 802 and 803, and as amended by the 2023 CAA. Per 2 CFR 200.430(g)(1) Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must (i) be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated and (vi) support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one federal award. Condition Management did not provide sufficient evidence to support the charges for salaries and wages for five of the seven employee samples who work solely on one cost objective or multiple cost objectives. Cause Management does not have controls and processes in place to ensure that required documentation is maintained to support federal award charges for salaries and wages. Effect Unallowable salary expenses were charged to the federal award, which could result in the City not receiving federal assistance or repayment of grant funds. Questioned Costs $11,480 Context The total salaries and wages were $1,036,364 and likely questioned costs are $252,797. Is the finding a repeat finding No Recommendations We recommend management establish a process to ensure required documentation is maintained to support federal award salaries and wages. Views of Responsible Officials/ Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization’s letterhead.
Corrective Action Plan: The Finance Department Grants Reporting team will train departments on the process for timesheet monitoring and documentation as outlined in the City’s grant manual. The Grants Reporting team will conduct internal reviews/visits to the applicable departments to ensure time reporting and documentation procedures are followed and documentation retained meets the requirements listed in the grants manual. Persons(s) Responsible for Implementation: Cristen Huntz, Financial Analyst, Finance Department, (816) 513-1148, Email: cristen.huntz@kcmo.org, and Robin Flaherty, Financial Manager, Finance Department, (816) 513-1202, Email: robin.flaherty@kcmo.org. Implementation Date: The anticipated implementation date is April 30, 2026.
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 16, 2024. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by June 16, 2025, which was (430 days ago).
What is a management decision? →Program: Community Development Block Grants/Entitlement Grants Federal Agency: Department of Housing and Urban Development (HUD) AL #: 14.218 Federal Award Identification Number and Year: Various – See SEFA Pass-through Entity: N/A Type of Compliance Finding: N – Special Tests and Provisions Criteria Projects must have an environmental review unless they meet criteria specified in the regulations that would exempt or exclude them from RROF and environmental certification requirements (24 CFR sections 58.1, 58.22, 58.34, 58.35, and 570.604). Condition/Context The City did not provide evidence supporting the City’s compliance with this requirement. Cause The City failed to provide evidence of the environmental review certification necessary for a project. Effect The City may not be compliant with HUD, which could result in the City not receiving federal assistance or repayment of grant funds. Questioned Costs Unknown Is the finding a repeat finding No Recommendations We recommend that the City submit and maintain the required environmental review documentation to meet compliance requirements. Views of Responsible Officials / Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization’s letterhead.
Program: Community Development Block Grant/Entitlement Grants Federal Agency: Department of Housing and Urban Development AL #: 14.218 Federal Award Identification Number and Year: Various – See SEFA Pass-through Entity: N/A Type of Compliance Finding: N – Special Tests and Provisions Internal Control Impact: Material Weakness Finding: The City did not provide evidence supporting the City’s compliance with this requirement. Status: In progress – anticipated completion December 2024 with the current round of contracts. Corrective Action Plan: The Housing Department will implement procedures to ensure that all the contract requirements listed in Uniform Guidance are included prior to the City signing the contract with the outside agency. Person(s) Responsible for Implementation: LaToya Jones, Financial Manager, Housing and Community Development, Telephone: (816) 513-8436; Email: LaToya.Jones@kcmo.org Dion Lewis, Deputy Director, Housing and Community Development, Telephone: (816) 513-8494; Email: Dion.Lewis@kcmo.org
Program: Emergency Rental Assistance Program Federal Agency: Department of Treasury (DOT) AL #: 21.023 Federal Award Identification Number and Year: Various – See SEFA Pass-through Entity: N/A Type of Compliance Finding: M – Subrecipient Monitoring Criteria Per OMB Uniform Guidance, 2 CFR sections 200.331 (d) through (f), a pass-through entity (the City) must “monitor the activities of subrecipients as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals.” Also, per the City’s Grant Award Manual (City policy) regarding the Site Monitoring Plan of all subrecipients – “staff shall conduct and document at least one site visit annually.” Condition Management did not annually monitor “all” subrecipients as required by the Federal regulations and City’s policy. Cause Management does not have controls and processes in place to ensure that all subrecipients are monitored in accordance with the City’s policy. Effect Subrecipients may not be complying with the terms and conditions of the subaward or achieving program performance goals. Questioned Costs $4,644,629 Is the finding a repeat finding No Recommendations We recommend management establish a process to ensure all subrecipients are monitored as stated in the Federal regulations and City’s policy. Views of Responsible Officials/ Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization’s letterhead.
Program: Emergency Rental Assistance Program Federal Agency: US Department of Treasury AL #: 21.023 Federal Award Identification Number and Year: Various – See SEFA Pass-through Entity: N/A Type of Compliance Finding: M – Subrecipient Monitoring Internal Control Impact: Material Weakness Finding: Management did not annually monitor “all” subrecipients as required by the Federal regulations and City policy. Status: In progress – The Housing Department anticipates this will be completed by April 30, 2025 for subrecipient contracts. The City Grants Manual is being updated by the Finance Department grant staff currently and the anticipated completion is January 31, 2025. Corrective Action Plan: The Housing Department will have procedures in place to ensure the subrecipient monitoring is completed for each subrecipient contract annually. Information regarding subrecipient monitoring will be included in the updated City Grants Manual. Person(s) Responsible for Implementation: LaToya Jones, Financial Manager, Housing and Community Development, Telephone: (816) 513-8436; Email: LaToya.Jones@kcmo.org Dion Lewis, Deputy Director, Housing and Community Development, Telephone: (816) 513-8494; Email: Dion.Lewis@kcmo.org Robin Flaherty, Financial Manager, Finance Department, Telephone: (816) 513-1202; Email: Robin.Flaherty@kcmo.org
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on January 2, 2024. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by July 2, 2024, which was (779 days ago).
What is a management decision? →Finding 2023-001 (Material Weakness) Program: Community Development Block Grants/Entitlement Grants Federal Agency: Department of Housing and Urban Development (HUD) AL #: 14.218 Federal Award Identification Number and Year: Various - See SEFA Pass-through Entity: N/A Type of Compliance Finding: N - Special Tests and Provisions Criteria HUD performed a Fiscal Year 2023 Onsite Monitoring for CDBG (B21MC290003) and CDBG-CV (B20MW290003) to determine compliance with certain requirements at 24 CFR Part 570, 2 CFR Part 200, Public Law 116-136, and Federal Register Notice FR-6218-N-01. HUD monitoring may result in the identification of findings, where the auditee is required to address all findings identified in accordance with the response timeframes outlined in the report. In addition, within 30 days from the date of the report, the auditee has the opportunity to provide additional information demonstrating that, contrary to the identified findings, the auditee could demonstrate compliance with the requirements outlined in the findings. If the auditee failed to respond within 30 days, or if the response is unsatisfactory to HUD, the auditee must undertake corrective actions. Condition/Context The City did not respond to HUD regarding the findings outlined in the onsite monitoring report within the response timeframe. Cause The City failed to address identified findings in the HUD monitoring report according to the response timeframes outlined in the report. Effect The City may not be compliant with HUD, which could result in the City not receiving federal assistance or the repayment of grant funds. Questioned Costs Unknown Is the finding a repeat finding No Recommendations We recommend that the City respond to HUD's findings immediately. Views of Responsible Officials/Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization's letterhead.
Program: Community Development Block Grants/Entitlement Grants Federal Agency: Department of Housing and Urban Development AL #: 14.218 Federal Award Identification Number and Year: Various - See SEFA Pass-though Entity: N/A Type of Compliance Finding: N - Special Test and Provisions Internal Control Impact: Material Weakness Finding: The City did not respond to HUD regarding the findings outlined in the onsite monitoring report within the response timeframe. Status: Corrective action plan in progress Corrective Action Plan: The new staff in the Housing department is working with the Finance Department's Grant Manager to compile a response and to implement the necessary operating procedures to correct the issues which lead to this finding. Staff is also working with HUD to obtain technical assistance to correct the issues with the various CDBG programs. Person(s) Responsible for Implementation: LaToya Jones, Housing Department Financial Manager, Telephone: (816) 513-8436; Email: LaToya.Jones@kcmo.org; and, Robin Flaherty, Finance Department, Grant Manager, Telephone: (816) 513-1202; Email: Robin.Flaherty@kcmo.org
Finding 2023-002 (Significant Deficiency) Program: Community Development Block Grants/Entitlement Grants Federal Agency: Department of Housing and Urban Development (HUD) AL #: 14.218 Federal Award Identification Number and Year: Various - See SEFA Pass-through Entity: N/A Type of Compliance Finding: L - Reporting Criteria Per 24 CFR 91.520 and OMB No. 2506-0077, the grantee should submit the below reports within 90 days after the close of the grantees' program year: Consolidated Annual Performance and Evaluation Report (CAPER) PR-29 CDBG Cash on Hand Quarterly Report generated from the Information Disbursement and Information System (IDIS); and CDBG-CV Cash on Hand Quarterly Report generated from the Information Disbursement and Information System (IDIS) Condition/Context The City did not properly report information into IDIS and submit reports according to deadlines. Cause The City failed to submit required reports by the deadlines. Effect The failure of the City to adhere to all CDBG requirements could result in the repayment of grant funds. Questioned Costs Unknown Is the finding a repeat finding No Recommendations We recommend that the City submit all required reports by deadlines. Views of Responsible Officials/Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization's letterhead.
Program: Community Development Block Grants/Entitlement Grants Federal Agency: Department of Housing and Urban Development AL #: 14.218 Federal Award Identification Number and Year: Various - See SEFA Pass-through Entity: N/A Type of Compliance Finding: L - Reporting Internal Control Impact: Significant Deficiency Finding: The City did not properly report information into IDIS and submit reports according to deadlines. Status: Corrective action plan in progress Corrective Action Plan: The new staff in the Housing department is working with the Finance Department's Grant Manager to develop and implement operating procedures to ensure the IDIS information is recorded timely and accurately. Staff is also working with HUD to obtain the needed technical assistance to correct the issues with the various CDBG programs. Person(s) Responsible for Implementation: LaToya Jones, Housing Department Financial Manger, Telephone: (816) 513-8436; Email LaToya.Jones@kcmo.org; and, Robin Flaherty, Finance Department, Grant Manager, Telephone: (816) 513-1202; Email: Robin.Flaherty@kcmo.org
Finding 2023-003 (Material Weakness) Program: Choice Neighborhoods Implementation Grants Federal Agency: Department of Housing and Urban Development (HUD) AL #: 14.889 Federal Award Identification Number and Year: Various - See SEFA Pass-through Entity: N/A Type of Compliance Finding: G) Matching, Level of Effort, Earmarking Criteria Per 42 USC 1437v(c), grantees must provide a 5 percent overall match, and if more than 5 percent of the grant is used for community and supportive services, any amount over 5 percent must be matched. Condition/Context The City did not provide evidence that they met the grant's matching requirement. Cause Failed to maintain documentation demonstrating that they satisfied the matching requirement. Effect The failure of the City to adhere to all Choice Neighborhoods Implementation Grants requirements could result in the repayment of grant funds. Questioned Costs Unknown Is the finding a repeat finding No Recommendations We recommend that the City submit/provide all required documentation to meet compliance requirements. View of Responsible Officials/Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization's letterhead.
Program: Choice Neighborhoods Implementation Grants Federal Agency: Department of Housing and Urban Development AL #: 14.889 Federal Award Identification Number and Year: Various - See SEFA Pass-through Entity: N/A Type of Compliance Finding: G - Matching, Level of Effort, Earmarking Internal Control Impact: Material Weakness Finding: The City did not provide evidence that they met the grant's matching requirement. Status: Resolved Corrective Action Plan: Documentation was submitted to the auditors after the finding came out for the Critical Community Improvement funding project. The provided documentation shows the required match for the $800,000 that was spent from the grant funds. Person(s) Responsible for Implementation: Jeffrey Williams, Director of City Planning, Telephone: (816) 513-8803; Email: Jeffrey.Williams@kcmo.org
Finding 2023-004 (Material Weakness) Program: Choice Neighborhoods Implementation Grants Federal Agency: Department of Housing and Urban Development (HUD) AL #: 14.889 Federal Award Identification Number and Year: Various - See SEFA Pass-through Entity: N/A Type of Compliance Finding: I) Procurement, Suspension & Debarment Criteria Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures which reflect applicable state and local laws and regulation, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR part 200 and they must not be suspended or debarred. Condition/Context The City did not provide evidence supporting the City's compliance with this requirement. Cause The City did not follow their internal control processes and procedures. Effect The failure of the City to adhere to all Choice Neighborhoods Implementation Grants requirements could result in the repayment of grant funds. Questioned Costs Unknown Is the finding a repeat finding No Recommendations We recommend that the City submit/provide all required documentation to meet compliance requirements. Views of Responsible Officials/Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization's letterhead.
Program: Choice Neighborhoods Implementation Grants Federal Agency: Department of Housing and Urban Development AL #: 14.889 Federal Award Identification Number and Year: Various - See SEFA Pass-through Entity: N/A Type of Compliance Finding: I - Procurement, Suspension, & Debarment Internal Control Impact: Material Weakness Finding: The City did not provide evidence supporting the City's compliance with this requirement. Status: Resolved Corrective Action Plan: Since the CNI grant has ended, the corrective action plan will apply to future grants. When the City obtains future grants utilizing and/or funding projects in multiple City Departments, operating procedures will be in place to comply with 2 CFR sections 200.318 through 200.326 to ensure compliance and the required grant documentation will be centrally located and filed. Person(s) Responsible for Implementation: Jeffrey Williams, Director of City Planning, Telephone: (816) 513-8803; Email: Jeffrey.Williams@kcmo.org
Finding 2023-005 (Material Weakness) Program: Choice Neighborhoods Implementation Grants Federal Agency: Department of Housing an Urban Development (HUD) AL #: 14.889 Federal Award Identification Number and Year: Various - See SEFA Pass-through Entity: N/A Type of Compliance Finding: N) Special Tests and Provisions Criteria All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141-3144, 3146, and 3147). Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR Sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326). Condition/Context The City did not provide evidence supporting the City's compliance with this requirement. Cause The City did not follow their internal control processes and procedures. Effect The failure of the City to adhere to all Choice Neighborhoods Implementation Grants requirements could result in the repayment of grant funds. Questioned Costs Unknown Is the finding a repeat finding No Recommendations We recommend that the City submit/provide all required documentation to meet compliance requirements. Views of Responsible Officials/Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization's letterhead.
Program: Choice Neighborhoods Implementation Grants Federal Agency: Department of Housing and Urban Development AL #: 14.889 Federal Award Identification Number and Year: Various - See SEFA Pass-through Entity: N/A Type of Compliance Finding: N - Special Test and Provisions Internal Control Impact: Material Weakness Finding: The City did not provide evidence supporting the City's compliance with this requirement. Status: Resolved Corrective Action Plan: Since the CNI grant has ended, the corrective action plan will apply to future grants. When the City obtains future grants utilizing and/or funding projects in multiple City Departments, operating procedures will be in place to ensure compliance and the required grant documentation will centrally located and identified. Person(s) Responsible for Implementation: Jeffrey Williams, Director of City Planning, Telephone: (816) 513-8803; Email: Jeffrey.Williams@kcmo.org
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on January 2, 2023. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by July 2, 2023, which was (1145 days ago).
What is a management decision? →Program: Community Development Block Grants/Entitlement Grants Federal Agency: Department of Housing and Urban Development (HUD) AL #: 14.218 Federal Award Identification Number and Year: Various ? See SEFA Pass-through Entity: N/A Type of Compliance Finding: J ? Program Income Criteria - Per OMB Uniform Guidance, 24 CFR sections 570.500 and 570.504, ?The grantee must accurately account for any program income generated from the use of CDBG funds and must treat such income as additional CDBG funds which are subject to all program rules.? Condition/Context - The City hired a third party to service single family home loans made with federal funds from this grant. The City did not maintain a listing or monitor the loans originated under this grant. Accordingly, the City cannot reconcile the loan servicer?s accounting reports to City records. Although the City indicated that they have other sources of program income, the City does not have a system which identifies other sources of program income. Cause - The City has not established a process to ensure that all income received by the third-party loan servicer, less their administrative fee, is remitted to the City. Because the City does not maintain a listing of all loans made, the City cannot reconcile the accounting reports provided by the loan servicer to City records. The City has also not established a system to ascertain that all other anticipated sources of program income is remitted to the City. Effect - The City may not have recorded all program income received, which would result in the City drawing down entitlement funds rather than using program income. Questioned Costs - Unknown Is the finding a repeat finding - Yes ? Finding 2021-001 and 2020-002 Recommendations - We recommend that the City establish a process that: ? Identifies all sources of program income ? All program income is recorded in the accounting records ? All program income was used in accordance with program requirements Views of Responsible Officials/ Planned Corrective Actions - Management agrees with the finding. See Corrective Action Plan on Organization?s letterhead.
Program: Community Development Block Grants/Entitlement Grants Compliance: J-Program Income Finding Type: Compliance and Internal Control Agency: Department of Housing and Urban Development (HUD) Internal Control Impact: Material Weakness Finding: The City hired a third party to service single family home loans made with federal funds from this grant. The City did not maintain a listing or monitor the loans originated under this grant. Accordingly, the City cannot reconcile the loan servicer?s accounting reports to City records. Although the City indicated that they have other sources of program income, the City does not have a system which identifies other sources of program income. Status: Corrective action plan in progress Corrective Action Plan: The City has obtained information from the third-party loan servicer which will allow for the tracking and confirmation of existing loans with the goal of taking a more active role in the management of the portfolio including making decisions for write-off of non-performing balances and those where the cost of servicing the loan exceeds the loan payments. Person(s) Responsible for Implementation: Pearline McFall, Housing Department Fiscal Officer, Telephone: (816) 513-8432; Email: Pearline.McFall@kcmo.org Implementation Date: Ongoing
2021-001
Program: Airport Improvement Program Federal Agency: Department of Transportation (DOT)/Federal Aviation Administration (FAA) AL #: 20.106 Federal Award Identification Number and Year: Various ? See SEFA Pass-through Entity: N/A Type of Compliance Finding: N ? Special Tests and Provisions Criteria - Per 49 U.S. Code ?47017(b) and ?47133, sponsors are required to use airport revenue for the capital or operating costs of the airport, the local airport system, or other local facilities that are directly and substantially related to air transportation of passengers or property. The U.S. Department of Transportation/Federal Aviation Administration - National Policy (Order 5100.38D, Change 1), Airport Improvement Handbook, effective February 29, 2019 provides the policy on the use of airport revenue. Among other things the policy prohibits the use of airport revenue for: ? Direct or indirect payments that exceed the fair and reasonable value of those services and facilities provided to the airport. Condition/Context - The City utilizes 745,190 square feet of land owned by the Aviation Department for the City?s Fire Department and Police Station serving the north Kansas City community including the Kansas City airport. The City pays ground rent of $0.168 per square foot per year based on a rate study done in 2003. Cause - Management did not perform analysis to verify the fair and reasonableness of the rental rate. Effect - The City?s direct costs charged, or credits given to the Aviation Department may not be commensurate to the services provided or products received by the airport. Questioned Costs - Unknown Is the finding a repeat finding Yes ? Finding 2021-002 and 2020-007 Recommendations - We recommend that management perform analysis to verify the fair and reasonableness of the rental rate. Views of Responsible Officials/ Planned Corrective Actions - Management agrees with the finding. See Corrective Action Plan on Organization?s letterhead.
Program: Airport Improvement Program Compliance: N ? Special Tests and Provisions Finding Type: Compliance and Internal Control Agency: Department of Transportation (DOT)/Federal Aviation Administration (FAA) Internal Control Impact: Significant Deficiency Finding: The City utilizes 745,190 square feet of land owned by the Aviation Department for the City?s Fire Department and Police Station serving the north Kansas City community including the Kansas City airport. The City pays ground rent of $0.168 per square foot per year based on a rate study done in 2003. Status: Corrective action plan in progress Corrective Action Plan: Fair and reasonableness of the rental rate: Upon completion of the New Terminal the Department will undertake either a Land Use Survey or a Market Rate Study to determine if our leased property is competitively priced. The Aviation Department has placed in FY24 budget a placeholder for a Market Study contract. Person(s) Responsible for Implementation: Fred O?Neill, Aviation Department Fiscal Officer, Telephone: (816) 243-3201; Email: Fred_ONeill@kcmo.org Implementation Date: Fair and reasonableness of the rental rate will be reviewed upon completion of the new terminal.
2021-002
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on May 2, 2022. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by November 2, 2022, which was (1387 days ago).
What is a management decision? →Finding 2021-001 (Material Weakness) Program: Community Development Block Grants/Entitlement Grants Federal Agency: Department of Housing and Urban Development (HUD) AL #: 14.218 Federal Award Identification Number and Year: Pass-through Entity: COVID-19 Identification: Type of Compliance Finding: J ? Program Income Finding Type: Compliance and Internal Control Criteria Per OMB Uniform Guidance, 24 CFR sections 570.500 and 570.504, ?The grantee must accurately account for any program income generated from the use of CDBG funds and must treat such income as additional CDBG funds which are subject to all program rules.? The receipt of income derived from loan payments is subject to program requirements. Grantees must have a loan origination and servicing system in effect which assures that loans are properly authorized, receivables are properly established, earned income is properly recorded and used, and writeoffs of uncollectible amounts are properly authorized. Condition The City hired a third party to service single family home loans made with federal funds from this grant. The City did not maintain a listing of the loans originated under this program. Accordingly, the City cannot reconcile the loan servicer?s accounting reports to City records. Cause The City has not established a process to ensure that all income received by the third-party loan servicer, less their administrative fee, is remitted to the City. Because the City does not maintain a listing of all loans made, the City cannot reconcile the accounting reports provided by the loan servicer to City records. Effect The City may not receive all program income that was received, but not remitted by, the loan servicer which would result in the City drawing down entitlement funds rather than using program income. Questioned Costs Unknown Is the finding a repeat finding Yes ? Finding 2020-002 Recommendations We recommend that the City maintain a list of all loans made under the program that is routinely reconciled to the accounting reports prepared by the loan servicer and discrepancies should be timely investigated. Views of Responsible Officials/ Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization?s letterhead.
Program: Community Development Block Grants/Entitlement Grants Federal Agency: Department of Housing and Urban Development (HUD) AL #: 14.218 Federal Award Identification Number and Year: N/A Pass-Through Entity: N/A COVID-19 Identification: N/A Type of Compliance Finding: J - Program Income Finding Type: Compliance and Internal Control Internal Control Impact: Material Weakness Finding: The City hired a third party to service single family home loans made with federal funds from this grant. The City did not maintain a listing of the loans originated under this program. Accordingly, the City cannot reconcile the loan servicer?s accounting reports to City records. Status: Corrective Action in Progress Corrective Action Plan: The City will work with the third-party servicer and the Auditors to determine the best course of action to reconcile the accounting report. Persons(s) Responsible for Implementation: Jennifer Tidwell, Housing Department, Director of Housing - Acting, Telephone (816) 513-3037; Email Jennifer.Tidwell@kcmo.org Implementation Date: Ongoing
Finding 2021-002 (Significant Deficiency) Program: Airport Improvement Program Federal Agency: Department of Transportation (DOT)/Federal Aviation Administration (FAA) AL #: 20.106 Federal Award Identification Number and Year: N/A Pass-through Entity: N/A COVID-19 Identification: N/A Type of Compliance Finding: N ? Special Tests and Provisions Finding Type: Compliance and Internal Control Criteria Per 49 U.S. Code ?47017(b) and ?47133, sponsors are required to use airport revenue for the capital or operating costs of the airport, the local airport system, or other local facilities that are directly and substantially related to air transportation of passengers or property. The U.S. Department of Transportation/Federal Aviation Administration - National Policy (Order 5100.38D, Change 1), Airport Improvement Handbook, effective February 29, 2019 provides the policy on the use of airport revenue. Among other things the policy prohibits the use of airport revenue for: ? Direct or indirect payments that exceed the fair and reasonable value of those services and facilities provided to the airport. Condition ? The City utilizes 745,190 square feet of land owned by the Aviation Department for the City?s Fire Department and Police Station serving the north Kansas City community including the Kansas City airport. The City pays ground rent of $0.168 per square foot per year based on a rate study done in 2003. ? The City provides ambulance services to the Aviation department and the total cost is covered by Aviation. The ambulance station also provides emergency services to the Northland community. The Aviation department has been provided with a credit for the insurance proceeds collected by the City for services provided at the Aviation location. Cause Management did not perform analysis to verify the fair and reasonableness of the rental rate. Effect The City?s direct costs charged, or credits given to the Aviation Department may not be commensurate to the services provided or products received by the airport. Questioned Costs Unknown Is the finding a repeat finding Yes ? Finding 2020-007 Recommendations We recommend that management perform analysis to verify the fair and reasonableness of the rental rate. Views of Responsible Officials/ Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization?s letterhead.
Program: Airport Improvement Program Federal Agency: Department of Transportation (DOT)/Federal Aviation Administration (FAA) AL #: 20.106 Federal Award Identification Number and Year: N/A Pass-Through Entity: N/A COVID-19 Identification: N/A Type of Compliance Finding: N ? Special Tests and Provisions Finding Type: Compliance and Internal Control Internal Control Impact: Significant Deficiency Findings: ? The City utilizes 745,190 square feet of land owned by the Aviation Department for the City?s Fire Department and Police Station serving the north Kansas City community including the Kansas City airport. The City pays ground rent of $0.168 per square foot per year based on a rate study done in 2003. ? The City provides ambulance services to the Aviation Department and the total cost is covered by Aviation. The ambulance station also provides emergency services to the Northland community. The Aviation Department has been provided with a credit for the insurance proceeds collected by the City for services provided at the Aviation location. Status: Corrective Action in Progress Corrective Action Plan: ? Fair and reasonableness of the rental rate: upon completion of the New Terminal, the Department will undertake either a Land Use Survey or a Market Rate Study to determine if our leased property is competitively priced. ? Ambulance Services: We will work with the Fire Department to provide accurate run counts and associated credits in order to determine if the Department is being properly charged. Person(s) Responsible for Implementation: Contact Person: Fred O?Neill, Aviation Department, Fiscal Officer, (816) 243-3201; E-mail Fred_ONeill@kcmo.org Implementation Date: Fair and reasonableness of the rental rate and Ambulance Services Fee reviews are ongoing.
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 27, 2020. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by June 27, 2021, which was (1880 days ago).
What is a management decision? →Finding 2020-002 (Material Weakness) Program: Community Development Block Grants/Entitlement Grants Federal Agency: Department of Housing and Urban Development (HUD) CFDA #: 14.218 Type of Compliance Finding: J ? Program Income Finding Type: Compliance and Internal Control Criteria Per OMB Uniform Guidance, 24 CFR Part(s) 570.500 and 570.504, ?The grantee must accurately account for any program income generated from the use of CDBG funds and must treat such income as additional CDBG funds which are subject to all program rules.? The receipt of income derived from loan payments is subject to program requirements. Grantees must have a loan origination and servicing system in effect which assures that loans are properly authorized, receivables are properly established, earned income is properly recorded and used, and write- offs of uncollectible amounts are properly authorized. Condition The City hired a third party to service single family home loans made with federal funds from this grant. The City did not maintain a listing of the loans originated under this program. Accordingly, the City cannot reconcile the loan servicer?s accounting reports to City records. Cause The City has not established a process to ensure that all income received by the third-party loan servicer, less their administrative fee, is remitted to the City. Because the City does not maintain a listing of all loans made, the City cannot reconcile the accounting reports provided by the loan servicer to City records. Effect The City may not receive all program income that was received, but not remitted by, the loan servicer which would result in the City drawing down entitlement funds rather than using program income. Questioned Costs Unknown Is the finding a repeat finding No Recommendations We recommend that the City maintain a list of all loans made under the program that is routinely reconciled to the accounting reports prepared by the loan servicer and discrepancies should be timely investigated. Views of Responsible Officials/ Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization?s letterhead.
2020-002 Program: Community Development Block Grants/Entitlement Grants Compliance: J-Program Income Finding Type: Compliance and Internal Control Agency: Department of Housing and Urban Development (HUD) Internal Control Impact: Material Weakness Finding: The City hired a third party to service single family loans made with federal funds from this grant. The City did not maintain a listing of the loans originated under this program. Accordingly, the City cannot reconcile the loan servicer?s accounting reports to City records. Status: Based upon a court order, the City of Kansas City, NHS Department transferred all the properties to the contractor, AmeriNational. As a result, there is a listing of the contracts that is managed by AmeriNational. AmeriNational gives a monthly report with a listing of all outstanding properties. Corrective Action Plan: Staff reviews this report and will compare it to the original listing. Person(s) Responsible for Implementation: Heather Cater, Neighborhoods Housing Services, Fiscal Officer, Telephone (816) 513-3041; Email Heather.Cater@kcmo.org Implementation Date: Staff will begin reviewing this report beginning in January, 2021.
Finding 2020-003 (Material Weakness) Program: Community Development Block Grants/Entitlement Grant Federal Agency: Department of Housing and Urban Development (HUD) CFDA #: 14.218 Type of Compliance Finding: M ? Subrecipient Monitoring Finding Type: Compliance and Internal Control Criteria Per OMB Uniform Guidance, 2 CFR sections 200.331 (d) through (f), a pass-through entity (the City) must ?monitor the activities of subrecipients as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals.? Also, per the City?s CDBG Operating Manual (City policy) regarding subrecipient monitoring ? ?staff shall conduct on-site monitoring reviews of each activity implemented by subrecipients, ? each year.? Condition Management did not annually monitor ?all? subrecipients as required by the City?s policy. Cause Management does not have controls and processes in place to ensure that all subrecipients are monitored in accordance with the City?s policy. Effect Subrecipients may not be complying with the terms and conditions of the subaward or achieving program performance goals. Questioned Costs $2,280,496 Is the finding a repeat finding Yes ? Finding 2019-002 Recommendations We recommend management establish a process to ensure all subrecipients are monitored as stated in the City?s policy or to amend the policy to allow for monitoring less than 100% of subrecipients (state the percentage that would be monitored) and obtain HUD?s approval of the modification to the policy. Views of Responsible Officials/ Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization?s letterhead.
2020-003 Program: Community Development Block Grants/Entitlement Grants Compliance: M ? Subrecipient Monitoring Finding Type: Compliance and Internal Control Agency: Department of Housing and Urban Development (HUD) Internal Control Impact: Material Weakness Finding: Management did not annually monitor ?all? subrecipients as required by the City?s policy. Status: Due to COVID-19 and the Emergency Orders relating to direct in person meetings, the City has expanded its time frame for monitoring. Many of the contractors were not available for in-person meetings and/or did not have access to files which caused a delay in monitoring these projects. Corrective Action Plan: We are in the process of updating our policies and procedures and intend to have new procedures in place before the next monitoring season to include processes during unforeseen circumstances. Person(s) Responsible for Implementation: Jennifer Tidwell, Neighborhoods Housing Services, Division Manager, Telephone (816) 513-3037; Email Jennifer.Tidwell@kcmo.org Implementation Date: The review process for CDBG projects is ongoing and will be completed by years? end.
2019-002
Finding 2020-004 (Material Weakness) Program: HOME Investment Partnerships Program Federal Agency: Department of Housing and Urban Development (HUD) CFDA #: 14.239 Type of Compliance Finding: E - Eligibility Finding Type: Compliance and Internal Control Criteria Per OMB Uniform Guidance, 24 CFR section 92.203, ?the HOME program has income targeting requirements for the HOME program and for HOME projects. Therefore, the participating jurisdiction must determine if each family is income eligible by determining the family?s annual income, including all persons in the household. Only low-income or very low-income persons (24 CFR section 92.2) can receive housing assistance (24 CFR section 92.1). Participating jurisdictions must maintain records for each family assisted (24 CFR section 92.508).? Condition Management failed to maintain documentation that income eligibility determinations were made for all families receiving assistance. Cause Management does not have controls and processes in place to ensure that income eligibility determinations were performed, and documentation of the analysis was maintained. Effect Management may have allowed families to receive assistance under this program who were not eligible. Questioned Costs Unknown Is the finding a repeat finding Yes ? Finding 2019-003 and Finding 2019-004 Recommendations We recommend that management establish a process to ensure all documentation of income eligibility determinations are maintained. Views of Responsible Officials/ Planned Corrective Actions Management disagrees with the finding. See Corrective Action Plan on Organization?s letterhead.
2020-004 Program: HOME Investment Partnerships Program Compliance: E- Eligibility Finding Type: Compliance and Internal Control Agency: Department of Housing and Urban Development (HUD) Internal Control Impact: Material Weakness Finding: Management failed to maintain documentation that income eligibility determinations were made for all families receiving assistance. Status: Staff provided all the income eligibility determinations for all the HOME constructed units reviewed by the auditor. The Department Policy requires at least 20% of the HOME units in a project be reviewed. This requirement was met. Corrective Action Plan: No action required. Person(s) Responsible for Implementation: Jennifer Tidwell, Neighborhoods Housing Services, Division Manager, Telephone (816) 513-3037; Email Jennifer.Tidwell@kcmo.org Implementation Date: Not Applicable
2019-003
Finding 2020-005 (Material Weakness) Program: HOME Investment Partnerships Program Federal Agency: Department of Housing and Urban Development (HUD) CFDA #: 14.239 Type of Compliance Finding: J ? Program Income Finding Type: Compliance and Internal Control Criteria Per OMB Uniform Guidance, when program income is generated by housing that is only partially assisted with HOME funds or matching funds, the income must be prorated to reflect the percentage of HOME funds used. Condition Management?s spreadsheet tracking program income received could not be validated, because the loan receivables generating the purported program income, listed on the spreadsheet could not be reconciled to the general ledger. Cause Management has not established a process to identify all activities which may generate program income and management does not tie these amounts to the general ledger. Effect Management may not be accurately accounting for program income generated by this program, which would result in the City drawing down entitlement funds rather than using program income. Questioned Costs Unknown Is the finding a repeat finding No Recommendations We recommend that management maintain a list of all loans made under the program that is reconciled to the general ledger discrepancies should be timely investigated. Views of Responsible Officials/ Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization?s letterhead.
2020-005 Program: HOME Investment Partnerships Program Compliance: J ? Program Income Finding Type: Compliance and Internal Control Agency: Department of Housing and Urban Development (HUD) Internal Control Impact: Material Weakness Finding: Management?s spreadsheet tracking program income received could not be validated, because the loan receivables generating the purported program income, listed on the spreadsheet could not be reconciled to the general ledger. Status: Corrective Action Plan In Progress Corrective Action Plan: NHS/Housing Staff will provide a tracking spreadsheet with income from loans to NHS/Finance to reconcile to the general ledger. Person(s) Responsible for Implementation: Heather Cater, Neighborhoods Housing Services, Division Manager, Telephone (816) 513-3041; Email Heather.Cater@kcmo.org Implementation Date: January 2021
Finding 2020-006 (Material Weakness) Program: HOME Investment Partnerships Program Federal Agency: Department of Housing and Urban Development (HUD) CFDA #: 14.239 Type of Compliance Finding: N ? Special Tests and Provisions Finding Type: Compliance and Internal Control Criteria Per OMB Uniform Guidance, 24 CFR section 92.209(i), 92.251(f), and 92.504(d), ?During the period of affordability (i.e., the period for which the non-Federal entity must maintain subsidized housing) for HOME assisted rental housing, the participating jurisdiction must perform on-site inspections to determine compliance with property standards and verify the information submitted by the owners no less than (a) every 3 years for projects containing 1 to 4 units, (b) every 2 years for projects containing 5 to 25 units, and (c) every year for projects containing 26 or more units. The participating jurisdiction must perform annual on-site inspections of rental housing occupied by tenants receiving HOME-assisted tenant-based rental assistance to determine compliance with these standards.? Condition Management failed to maintain documentation that on-site housing quality inspections were performed during the affordability period for all rental housing occupied by tenants who participated in the HOME program. Cause Management does not have controls and processes in place to ensure that on-site housing quality inspections were performed, and documentation of the analysis was maintained. Effect The City may have provided rental assistance for tenants residing in housing that did not meet housing quality standards. Questioned Costs None Is the finding a repeat finding Yes ? Finding 2019-005 Recommendations We recommend that management establish a process to ensure all documentation of housing quality inspections are maintained. Views of Responsible Officials/ Planned Corrective Actions Management disagrees with the finding. See Corrective Action Plan on Organization?s letterhead.
2020-006 Program: HOME Investment Partnerships Program Compliance: N ? Special Tests and Provisions Finding Type: Compliance and Internal Control Agency: Department of Housing and Urban Development (HUD) Internal Control Impact: Material Weakness Finding: Management failed to maintain documentation that on-site housing quality inspections were performed during the affordability period for all rental housing occupied by tenants who participated in the HOME program. Status: Staff provided all the inspection results for units reviewed by the auditor. The Department Policy requires staff to review at least 20% of the HOME constructed units for income eligibility. Each unit reviewed for income eligibility was also inspected. This requirement was met. Corrective Action Plan: Staff will continue to meet the Department?s policy. Person(s) Responsible for Implementation: Jennifer Tidwell, Neighborhoods Housing Services, Division Manager, Telephone (816) 513-3037; Email Jennifer.Tidwell@kcmo.org Implementation Date: Not applicable.
2019-005
Finding 2020-007 (Significant Deficiency) Program: Airport Improvement Program Federal Agency: Department of Transportation (DOT)/Federal Aviation Administration (FAA) CFDA #: 20.106 Type of Compliance Finding: N ? Special Tests and Provisions Finding Type: Compliance and Internal Control Criteria Per 49 U.S. Code ?47017(b) and ?47133, sponsors are required to use airport revenue for the capital or operating costs of the airport, the local airport system, or other local facilities that are directly and substantially related to air transportation of passengers or property. The U.S. Department of Transportation/Federal Aviation Administration - National Policy (Order 5100.38D, Change 1), Airport Improvement Handbook, effective February 29, 2019 provides the policy on the use of airport revenue. Among other things the policy prohibits the use of airport revenue for: ? Direct or indirect payments that exceed the fair and reasonable value of those services and facilities provided to the airport. ? Payments made from airport revenues to sponsors, related parties, or other governmental entities that are non-airport related and not commensurate with services or products received by the airport Condition ? The City utilizes 745,190 square feet of land owned by the Aviation Department for the City?s Fire Department and Police Station serving the north Kansas City community including the Kansas City airport. The City pays ground rent of $0.168 per square foot per year based on a rate study done in 2003. ? The City provides ambulance services to the Aviation department and the total cost is covered by Aviation. The ambulance station also provides emergency services to the Northland community. The Aviation department has been provided with a credit for the insurance proceeds collected by the City for services provided at the Aviation location. ? During our review of 40 samples to ascertain that payments from airport revenues to sponsors, related parties, or other governmental entities were airport-related, properly documented, and commensurate with services or products received by the airport, we noted that 17 of the samples did not contain proper documentation to support the journal vouchers for payments made. Cause ? Management did not perform analysis to verify the fair and reasonableness of the rental rate. ? Management did not perform monthly run count reconciliations. ? Management does not have processes in place that requires supporting documentation to be included with all journal vouchers. Effect The City?s direct costs charged, or credits given to the Aviation Department, as well as payments made from airport revenue may not be commensurate to the services provided or products received by the airport. Questioned Costs Unknown Is the finding a repeat finding Yes ? Finding 2019-006 Recommendations We recommend that management (1) perform analysis to verify the fair and reasonableness of the rental rate, (2) perform run count reconciliations, and (3) establish processes/procedures to ensure journal vouchers include supporting documentation before they are posted to the general ledger. Views of Responsible Officials/ Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization?s letterhead.
2020-007 Program: Airport Improvement Program Compliance: N ? Special Tests and Provisions Finding Type: Compliance and Internal Control Agency: Department of Transportation (DOT)/Federal Aviation Administration (FAA) Internal Control Impact: Significant Deficiency Finding: 1) The City utilizes 745,190 square feet of land owned by the Aviation Department for the City?s Fire Department and Police Station serving the north Kansas City community including the Kansas City airport. The City pays ground rent of $0.168 per square foot per year based on a rate study done in 2003. 2) The City provides ambulance services to the Aviation Department and the total cost is covered by Aviation. The ambulance station also provides emergency services to the Northland community. The Aviation Department has been provided with a credit for the insurance proceeds collected by the City for services provided at the Aviation location. 2) During our review of 40 samples to ascertain that payments from airport revenues to sponsors, related parties or other governmental entities were airport related, properly documented and commensurate with services or products received by the airport, we noted that 17 of the samples did not contain proper documentation to support the journal vouchers for payments made. Status: Corrective Action Plan in Progress Corrective Action Plan: 1) The Airport will look to do a Market Value Study in the future in order to confirm the lease rates are in compliance with FAA guidelines for receiving market value for lease agreements with the City. 2) The Airport will work with the Kansas City Fire Department to ensure that we are paying for the airport?s share of the Northland?s Ambulance emergency services. 3) The Airport will work with the City to establish processes and procedures to ensure journal vouchers include supporting documentation before they are posted to the general ledger. Person(s) Responsible for Implementation: Fred O?Neill, Aviation Department, Fiscal Officer, Telephone (816) 243-3201; Email Fred_ONeill@kcmo.org Implementation Date: Ongoing
2019-006
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on November 19, 2019. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by May 19, 2020, which was (2284 days ago).
What is a management decision? →The City failed to provide subrecipient monitoring files for two of the 11 subrecipients selected for the review. The City failed to perform and to document the required annual subrecipient monitoring.
The City will continue to review compliance procedures and policies to enhance the timely compliance of CDBG activities to ensure corrective action.
Eleven HOME rental unit locations of the City were selected to ensure that the HOME rental units are occupied by income eligible families and the rents charged also meet the rent limits. It was noted that the City did not make eligibility determination or failed to provide documentation such as monitoring review files for Cameron Place Apartments, one out of the 11 sample locations selected for review. It was also noted that the City failed to conduct the eligibility determination of families occupying HOME units at another location, Woodland Heights Apartments (Phases I-IV). It was noted that the City had communicated to apartment management to schedule the dates to conduct the income eligibility and rent limits determination of the HOME units, however the monitoring was not conducted.
The City will strengthen its HOME procedures to ensure onsite reviews are performed and documented in compliance with the Federal regulations and program requirements.
A sample of 11 HOME rental unit locations of the City were selected to ensure the dwelling units assisted with HOME funds are at least 90 percent occupied by families whose annual incomes do not exceed 60% of the median family income for the area. During the review it was noted that the City failed to provide documentation (review or monitoring file) for Cameron Place Apartments, one out of 11 sample locations selected, hence we were unable to verify if the City meets the required percentage. It was also noted that the City failed to conduct the annual review of the HOME dwelling units at another location, the Woodland Heights Apartments (Phases I-IV) although the City initiated and communicated to apartment management to schedule dates for an onsite review of the HOME units' records and rental project compliance report. Two out of the 10 files for locations were selected for review, the files provided were not adequately supported. The files were missing support documents like "Rental Project Compliance Report"; pre and post monitoring correspondence by the City; and support that indicate the date of the onsite visit as conducted by the City.
The City will strengthen its HOME procedures to ensure onsite reviews are performed and documented in compliance with the Federal regulations and program requirements.
A sample of 11 HOME rental unit locations were selected for review of property quality standard inspection files. It was noted that the property quality standard inspection files for Cameron Place Apartments, one out of 11 samples selected, were not provided for review. The City also failed to conduct the property standard inspection for another location, the Woodland Heights Apartments (Phases I-IV), although the City communicated to apartment management to schedule dates for property inspection of the HOME units, however, no such visit was conducted. The City's staff visit, we noted was done at the Blue Hills Home - 4923 Olive, however, there was no support documentation that indicted the required property quality standard inspection was performed.
The City will strengthen its HOME procedures to ensure on site reviews are performed and documented in compliance with the Federal regulations and program requirements.
The City utilizes 745,190 of land owned by the Aviation Department for the City's Fire Department and Police Station serving the north Kansas City community including the KCI airport. Based on discussion with City personnel, the Fire Department is not dedicated for the airport use. The City pays ground rent of $0.1625 per square foot per year. We were unable to verify the fair and reasonablenss of the rental rate. The City provides ambulance services to the Aviation Department and the total cost would be covered by the Aviation Department. The ambulance station also provides emergency services to the Northland community. Although the Aviation Department has been provided with credit for the insurance proceeds collected by the City for the service provided to the Northland community due to lack of reconciliation of monthly run count with the credit provided. We were told that the Aviation Department is receiving a credit only for the ambulance services provided by the City at the Aviation location. The Aviation Department is also charged for governmental service overhead costs based on an indirect cost allocation rate developed by the City. There was no evidence of review of the allocation calculation performed by the Aviation Department as to the reasonableness of the rate developed by the City. Per our discussion with Aviation personnel, we were told that the City discussed the methodology of developing the overhead rate. During our review of a selected sample of journal vouchers which were initialed by the City, we noted that none of the journal vouchers contained evidence of review and/or approval by the Aviation Department.
The Aviation Department will take steps this year to resolve these open items: Fair and reasonableness of the rental rate: upon completion of the New Terminal the Department will undertake either a Land Use Survey or a Market Rate Study to determine if our leased property is competitively priced. Ambulance Services: We will work with the Fire Department to provide accurate run counts and associated credits in order to determine if the Department is being properly charged. Administrative Service Fee: The City is currently in process of acquiring a new model for the purposes of calculating the Administrative Service Fee. During this process, we will push fir there to be more transparency in how the expenses flow through in determining the amount the Department pays as well as providing for an easier path to review and reconcile the charges. Journal vouchers: The Department will work with the Finance Department to develop better processes that allow the Department to approve all journal vouchers electronically before they post.
2018-006
We noted that the City had requested and received reimbursements or federal funds from FEMA for two of the grants (Grant No. EMW-2015-FP-0869 and EMW-2016-FO-06961) before payments were made to the venders and goods and services were received. During our review of Grant No. EMW-2016-FO-06961, there were instances where reimbursement was received on January 331, 2019 for the cost of monitors/defibrillator and Thermal Imaging camera purchased for $216,000 and $178,052, respectively, while the vendors? invoices were paid on March 8, 2019 and April 12, 2019, respectively. We also noted that the City received advance funds of $35,119 in the prior year from grant No. EMW-2015-FP-0869. The grant expenditures reported in the current year SEFA was $47,962 but the reimbursement the City received was only $12,843. In neither of these cases the City has deposited the advance cash received in an interest-bearing bank account to comply with the requirement.
Fire Financial Services will work closely with the Fire Department's Grants Management staff to establish an internal communication procedure of when orders for goods/services are paid then will request for reimbursements to be submitted. The Kansas City Fire Department's Grants Management will work closely with the City Treasury Department to establish controls for advanced funds to be deposited. This should be on a very rare occurrence due to the process of requesting funds after services rendered or orders have been paid.
During the year, the City purchased 12 X series Monitors/Defibrillators costing $393,797 for its Fire Department using both the federal grant and City funds. Even though, the unit cost of each equipment is over the capitalization threshold of $5,000, the City did not include it in the capital assets record. Further, the Fire Department of the City could not provide to s with the physical inventory record of the capital assets.
The Kansas City Fire Department's Grant Management has resolved to use, manage and dispose of grant funded equipment in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 1.C.F.R 200.212. KCFD will ensure that all funded capital assets are recorded in the City of Kansas City property records. KCFD has acquired and is implementing tracking software designed to perform timely and ongoing inventory of these assets, providing the location of each in the system and verifying its current condition on a regular basis. As advised, City Grants Finance Division will capture fixed assets of KCFD into the system for current year inventory.
We noted an instance were the City paid $19,200 for goods and services after the performance period was ended. The grants period for grant No. EMW-2016-FO-06961 ended on January 4, 2019. Even though the order was placed before the period of performance ended, the City paid the vendor later on June 11, 2019 which was beyond the 90 days requirement of liquidation of obligation after the period of performance is ended.
Assistance to Firefighters grantees have the option to elect payment either for reimbursement or as advance on payments to be made within 3-0 days of receipt. It is the preferred procedure of the Kansas City Fire Department to utilize FEMA payment by reimbursement method, seeking reimbursement for funds that have been formally encumbered and orders placed. It has been determined by the Kansas City Fire Departments's Grants Management that in accordance to the US Department of Treasury regulations at 31C.F.R. Part 205, KCFD shall maintain procedures to minimize the time elapsing between the transfer of funds and the disbursement of said funds. The case in point involved a delay in payment to a vendor for which a purchase order encumbering funds has been dispatched prior to reimbursement. The recommendation for monitoring any time elapsed between dispatch of the purchase order and payment of resulting invoices is accepted and will be implemented.
The City failed to report the following reports on their due dates: Federal financial reports of grant No. EMW-2016-FO06961 for the period ended June 30, 2018 was submitted on September 11, 2018. Federal financial reports of grant No. EMW-2017-FO-06590 for the period ended December 31, 2018 was submitted on February 8, 2019. Performance reports of grant No. EMW-2016-FO-06961 for the periods from November 6, 2017 through May 5, 2018 and May 6, 2018 through November 5, 2018 were submitted on September 11, 2018 and January 7, 2019, respectively. The periods of performance for grant No. EMW-2015-FP-0869 and EMW-2016-FO-06961 were ended on May 31, 2018 and January 4, 2019, respectively. The closeout reports for these grants should have been submitted no later than 90 days after the end of the period of performance. The City, however, did not submit the closeout reports to the date of this report. According to the explanation obtained from the City, it was not submitted because the online closeout reporting module was not opened and made available by FEMA.
The Kansas City Fire Department's Grants Management is committed to performing semi-annual performance reports and SF-425 semi-annual reports in a timely manner in accordance to reporting due dates as provided by the FEMA reporting module. We will create a calendar of due dates as each grant is accepted, generating notices of pending due dates prior to scheduled deadlines in order to ensure submission at or before dates required.
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on November 25, 2018. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by May 25, 2019, which was (2644 days ago).
What is a management decision? →GSA_MIGRATION
GSA_MIGRATION
GSA_MIGRATION
GSA_MIGRATION
GSA_MIGRATION
GSA_MIGRATION
2017-003
GSA_MIGRATION
GSA_MIGRATION
GSA_MIGRATION
GSA_MIGRATION
2017-005
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 18, 2017. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by June 18, 2018, which was (2985 days ago).
What is a management decision? →GSA_MIGRATION
GSA_MIGRATION
GSA_MIGRATION
GSA_MIGRATION
2016-001
GSA_MIGRATION
GSA_MIGRATION
GSA_MIGRATION
GSA_MIGRATION
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on November 30, 2016. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by May 30, 2017, which was (3369 days ago).
What is a management decision? →GSA_MIGRATION
GSA_MIGRATION
GSA_MIGRATION
GSA_MIGRATION
2015-003
GSA_MIGRATION
GSA_MIGRATION
GSA_MIGRATION
GSA_MIGRATION
GSA_MIGRATION
GSA_MIGRATION
2015-004
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
Track your findings and corrective action plans across audit cycles.
Start tracking findings →Monitor subrecipient audit findings and compliance status.
Start monitoring →Single Audit Intelligence is an independent tool powered by Federal Audit Clearinghouse data. Not affiliated with GSA, OMB, or any federal agency.