EIN: 546001569
UEI: NBFNAEXRHD76
Data as of August 26, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on July 16, 2025. 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 January 16, 2026 (223 days ago).
What is a management decision? →2024-002: Workforce Investment Opportunity Cluster – Assistance Listing #17.258 / 17.259 / 17.277 / 17.278, Subrecipient Monitoring Condition During our review of subrecipient monitoring, we noted that the City’s monitoring was not performed according to the formal written policy. There was a lack of evidence of testing and suggestions to the subrecipient during the fiscal year 2024. Criteria According to 2CFR 200.331(a) of the OMB Compliance Supplement, the City should make subrecipients aware of award information. According to the City’s Program Participant Monitoring Plan, the City is supposed to conduct subrecipient monitoring on a semi-annual basis which should include desk reviews of payroll, disbursements, and other financial items. Cause Staff turnover, particularly for the role of grant accountant, caused these procedures to be overlooked. Management prioritized core operating activities with staffing vacancies in lieu of monitoring activities. Management asserts staff went onsite to review key documents, as documented by email activities, but did not document specific items subject to review. Effect Noncompliance with federal grant requirements with regard to subrecipient monitoring, as well as an increased risk of subrecipient misusing funds. Questioned Cost Amount Not applicable. Perspective Information Two out of two subawards. Recommendation We recommend performing subrecipient monitoring in accordance with the City’s guidelines and following the procedures laid out in the Program Participant Monitoring Plan. Repeat Finding 2023-001
Show full finding ▾Hide full finding ▴2024-002: Workforce Investment Opportunity Cluster – Assistance Listing #17.258 / 17.259 / 17.277 / 17.278, Subrecipient Monitoring Condition During our review of subrecipient monitoring, we noted that the City’s monitoring was not performed according to the formal written policy. There was a lack of evidence of testing and suggestions to the subrecipient during the fiscal year 2024. Criteria According to 2CFR 200.331(a) of the OMB Compliance Supplement, the City should make subrecipients aware of award information. According to the City’s Program Participant Monitoring Plan, the City is supposed to conduct subrecipient monitoring on a semi-annual basis which should include desk reviews of payroll, disbursements, and other financial items. Cause Staff turnover, particularly for the role of grant accountant, caused these procedures to be overlooked. Management prioritized core operating activities with staffing vacancies in lieu of monitoring activities. Management asserts staff went onsite to review key documents, as documented by email activities, but did not document specific items subject to review. Effect Noncompliance with federal grant requirements with regard to subrecipient monitoring, as well as an increased risk of subrecipient misusing funds. Questioned Cost Amount Not applicable. Perspective Information Two out of two subawards. Recommendation We recommend performing subrecipient monitoring in accordance with the City’s guidelines and following the procedures laid out in the Program Participant Monitoring Plan. Repeat Finding 2023-001
Management concurs with the recommendation. Loss of staff in this accountability area resulted in monitoring conducted by varying personnel over the past several fiscal years. In August 2024, Grant accountant left the City, after working in the position for a little over one year. Unfortunately, the spring monitoring had not been done before his departure. After his departure, attempts were made to properly monitor subrecipient program using another staff member; however, with the onboarding of a new accounting manager in March of 24 (second one in just under one year) and the accounting supervisor exiting in December of 2023 with no replacement until September, 2024, the lack of monitoring did occur as noted. A new grant accountant was hired in the Fall 2024 along with an Accounting Supervisor, and importance of the monitoring process was reviewed and escalated. Grant accountant visited subrecipient’s site in November 2024 and is preparing for a follow-up visit in Spring 2025 with expenditure testing.
2023-001
2024-003: Lead Hazard Control – Assistance Listing #14.900, Reporting Condition During our review of reporting, we noted that the City’s lacked a review process due to departmental constraints. We noted a lack of evidence of review of reporting prior to submission for quarterly reports during the fiscal year 2024. Criteria Controls over report review should be in place and documented to ensure timely and accurate reporting. Cause Due to the small nature of the department, there is overlap in position responsibilities. Effect Increased risk of errors in reporting. Questioned Cost Amount Not applicable. Perspective Information Quarterly Progress Reports to HUD. Recommendation We recommend segregating duties appropriately so that reports can be prepared and reviewed prior to submission by separate individuals. We also recommend maintaining evidence of review.
Show full finding ▾Hide full finding ▴2024-003: Lead Hazard Control – Assistance Listing #14.900, Reporting Condition During our review of reporting, we noted that the City’s lacked a review process due to departmental constraints. We noted a lack of evidence of review of reporting prior to submission for quarterly reports during the fiscal year 2024. Criteria Controls over report review should be in place and documented to ensure timely and accurate reporting. Cause Due to the small nature of the department, there is overlap in position responsibilities. Effect Increased risk of errors in reporting. Questioned Cost Amount Not applicable. Perspective Information Quarterly Progress Reports to HUD. Recommendation We recommend segregating duties appropriately so that reports can be prepared and reviewed prior to submission by separate individuals. We also recommend maintaining evidence of review.
Management concurs with recommendation. The issue is with staffing. The Lead Safe Roanoke program manager should prepare and the Administrator review, but at this time, we have one staff member covering both jobs. This has been noted to the City Manager and an interim plan to alleviate the lack proper review will be implemented.
2023-001
FAC accepted this audit on March 29, 2024 — management decision was due September 29, 2024.
During our review of subrecipient monitoring, we noted that the City’s monitoring was not being performed according to the formal written policy. While monitoring was performed and documented during the second half of fiscal year 2023, there was a lack of evidence of testing and suggestions to the subrecipient during the first half of fiscal year 2023. Criteria: According to 2CFR 200.331(a) of the OMB Compliance Supplement, the City should make subrecipients aware of award information. According to the City’s Program Participant Monitoring Plan, the City is supposed to conduct subrecipient monitoring on a semi-annual basis which should include desk reviews of payroll, disbursements, and other financial items. Cause: Staff turnover, particularly for the role of grant accountant, caused these procedures to be overlooked. Management prioritized core operating activities with staffing vacancies in lieu of monitoring activities. Management asserts staff went onsite to review key documents, as documented by email activities, but did not document specific items subject to review. Effect: Noncompliance with federal grant requirements with regard to subrecipient monitoring, as well as an increased risk of subrecipient misusing funds. Questioned Cost Amount: Not applicable. Perspective Information: One out of two subawards. Recommendation: We recommend performing subrecipient monitoring in accordance with the City’s guidelines and following the procedures laid out in the Program Participant Monitoring Plan. View of Responsible Officials and Planned Corrective Action: Management concurs with the recommendation and will ensure that follow-up occurs regarding information provided by business owners. Loss of staff in this accountability area resulted in an inquiry and reviews conducted by varying personnel the past few fiscal years. The Accounting Supervisor and the Accounts Payable Co-coordinator, in the absence of a Grant Accountant, conducted the first semi-annual visit for fiscal year 2023. A grant accountant was hired in the Spring 2023 along with an Accounting Manager, who were able to conduct the second visit in June 2023. Revisions to the policies and procedures were made following the June visit along with developing formalized documentation templates that show what was subject to monitoring. Fiscal year 2024 monitoring in January 2024 has been completed with follow-up to occur in June 2024.
Show full finding ▾Hide full finding ▴2023-001: Workforce Investment Opportunity Cluster – Assistance Listing #17.258 / 17.259 / 17.277 / 17.278, Subrecipient Monitoring Condition: During our review of subrecipient monitoring, we noted that the City’s monitoring was not being performed according to the formal written policy. While monitoring was performed and documented during the second half of fiscal year 2023, there was a lack of evidence of testing and suggestions to the subrecipient during the first half of fiscal year 2023. Criteria: According to 2CFR 200.331(a) of the OMB Compliance Supplement, the City should make subrecipients aware of award information. According to the City’s Program Participant Monitoring Plan, the City is supposed to conduct subrecipient monitoring on a semi-annual basis which should include desk reviews of payroll, disbursements, and other financial items. Cause: Staff turnover, particularly for the role of grant accountant, caused these procedures to be overlooked. Management prioritized core operating activities with staffing vacancies in lieu of monitoring activities. Management asserts staff went onsite to review key documents, as documented by email activities, but did not document specific items subject to review. Effect: Noncompliance with federal grant requirements with regard to subrecipient monitoring, as well as an increased risk of subrecipient misusing funds. Questioned Cost Amount: Not applicable. Perspective Information: One out of two subawards. Recommendation: We recommend performing subrecipient monitoring in accordance with the City’s guidelines and following the procedures laid out in the Program Participant Monitoring Plan. View of Responsible Officials and Planned Corrective Action: Management concurs with the recommendation and will ensure that follow-up occurs regarding information provided by business owners. Loss of staff in this accountability area resulted in an inquiry and reviews conducted by varying personnel the past few fiscal years. The Accounting Supervisor and the Accounts Payable Co-coordinator, in the absence of a Grant Accountant, conducted the first semi-annual visit for fiscal year 2023. A grant accountant was hired in the Spring 2023 along with an Accounting Manager, who were able to conduct the second visit in June 2023. Revisions to the policies and procedures were made following the June visit along with developing formalized documentation templates that show what was subject to monitoring. Fiscal year 2024 monitoring in January 2024 has been completed with follow-up to occur in June 2024.
CORRECTIVE ACTION PLAN March 26, 2024 City of Roanoke, Virginia respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Brown, Edwards & Company, L.L.P. 3906 Electric Road Roanoke, VA 24018 Audit period: June 30, 2023 The findings from the June 30, 2023 Schedule of Findings and Questioned Costs (the "Schedule") are discussed below. The findings are numbered consistently with the number assigned in the Schedule. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT 2023-001: Workforce Investment Opportunity Cluster - Assistance Listing #17.258117.259 / 17.277 / 17.278, Subrecipient Monitoring Condition: During our review of subrecipient monitoring, we noted that the City's monitoring was not being performed according to the formal written policy. While monitoring was performed and documented during the second half of fiscal year 2023, there was a lack of evidence of testing and suggestions to the subrecipient during the first half of fiscal year 2023. Criteria: According to 2CFR 200.33l(a) of the 0MB Compliance Supplement, the City should make subrecipients aware of award information. According to the City's Program Participant Monitoring Plan, the City is supposed to conduct subrecipient monitoring on a semi-annual basis which should include desk reviews of payroll, disbursements, and other financial items. Cause: Staff turnover, particularly for the role of grant accountant, caused these procedures to be overlooked. Management prioritized core operating activities with staffing vacancies in lieu of monitoring activities. Management asserts staff went onsite to review key documents, as documented by email activities, but did not document specific items subject to review. Effect: Noncompliance with federal grant requirements with regard to subrecipient monitoring as well as an increased risk of subrecip1ent misusing funds. Questioned Cost Amount: Not applicable. Perspective Information: One out of two awards Recommendation: We recommend performing subrecipient monitoring in accordance with the City's guidelines and following the procedures laid out in the Program Participant Monitoring Plan. Corrective Action: Management concurs with the recommendation and will ensure that follow-up occurs regarding information provided by business owners. Loss of staff in this accountability area resulted in inquiry and reviews conducted by varying personnel the past few fiscal years. The Accounting Supervisor and the Accounts Payable coordinator, in the absence of a Grant Accountant, conducted the first semi-annual visit for fiscal year 2023. A grant accountant was hired in Spring 2023 along with an Accounting Manager, who were able to conduct the second visit in June 2023. Revisions to the policies and procedures were made following the June visit along with developing formalized documentation templates that show what was subject to monito ring. Fiscal year 2024 monitoring in January 2024 has been completed with follow-up to occur in June 2024. 2023-002: Coronavirus State and Local Fiscal Recovery Funds -Assistance Listing #21.027, Disbursements Condition: During our review of the locality's disbursements related to the program, it was noted that procurement policies were not being followed. In 3 of 25 instances, credit card purchases were not properly approved. Criteria: CSLFRF funds may be used for eligible expenses subject to restrictions set forth in Treasury's Interim Final Rule and Final Rule at 31 CFR Part 35. Also, 2 CFR Part 200 section 303 requires effective control over, and accountability for, all funds. According to the City's procurement policy, department managers and directors are supposed to review and approve credit card purchases on a monthly basis. Review includes ensuring appropriate supporting documentation is included. Documentation should support that transactions are for allowable expenses. Cause: Though the City has controls that push compliance, monitoring and enforcement by Finance is lacking. Additionally, the volume of transactions make monitoring challenging. Some transaction support and approval are routed electronically through US Bank for automation, but there are thousands of monthly transactions. Effect: Noncompliance with federal grant requirements with regard to disbursements. Questioned Costs: Not applicable. Perspective Information: Three out twenty-five transactions Recommendation: We recommend disbursing funds in accordance with the City's procurement policy including a process that requires approval of all credit card purchases. Corrective Action: Management concurs with the recommendation and will ensure that procurement policies including those over credit card purchases will be adhered to. Starting in fiscal year 2023 communication to department directors occurred reinforcing that reviewing and approving financial transactions is necessary under City policy. The City's Department of Finance on a monthly basis is monitoring P-Card compliance and has enhanced communication of internal deadline dates for coding and approving transactions. Follow-up is performed by the Accounts Payable coordinator to address issues with individual users and departments who have unapproved transactions. This practice will continue moving forward with issues of continued non-compliance by users and directors potentially resulting in revoking privileges of using city purchasing cards. 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 0MB 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: Three out of twenty-five transactions 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. 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. If the Federal Audit Clearinghouse has questions regarding this plan, please call Andrea Trent, Financial Management Consultant at 540-853-5224. Sincerely yours, Andrea F. Trent Financial Management Consultant
2022-001
During our review of the locality’s disbursements related to the program, it was noted that procurement policies were not being followed. In 3 of 25 instances, credit card purchases were not properly approved. Criteria: CSLFRF funds may be used for eligible expenses subject to restrictions set forth in Treasury’s Interim Final Rule and Final Rule at 31 CFR Part 35. Also, 2 CFR Part 200 section 303 requires effective control over, and accountability for, all funds. According to the City’s procurement policy, department managers and directors are supposed to review and approve credit card purchases on a monthly basis. Review includes ensuring appropriate supporting documentation is included. Documentation should support that transactions are for allowable expenses. Cause: Though the City has controls that push compliance, monitoring and enforcement by Finance is lacking. Additionally, the volume of transactions make monitoring challenging. Some transaction support and approval are routed electronically through US Bank for automation, but there are thousands of monthly transactions. Effect: Noncompliance with federal grant requirements with regard to disbursements. Questioned Cost Amount: Not applicable. Perspective Information: Three out of twenty-five transactions. Recommendation: We recommend disbursing funds in accordance with the City’s procurement policy including a process that requires approval of all credit card purchases. View of Responsible Officials and Planned Corrective Action: Management concurs with the recommendation and will ensure that procurement policies including those over credit card purchases will be adhered to. Starting in fiscal year 2023 communication to department directors occurred reinforcing that reviewing and approving financial transactions is necessary under City policy. The City’s Department of Finance on a monthly basis is monitoring P-Card compliance with standard metrics and has enhanced communication of internal deadline dates for coding and approving transactions. Follow-up is performed by the Accounts Payable coordinator to address issues with individual users and departments who have unapproved transactions. This practice will continue moving forward with issues of continued non-compliance by users and directors potentially resulting in revoking privileges of using city purchasing cards.
Show full finding ▾Hide full finding ▴2023-002: Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing #21.027, Disbursements Condition: During our review of the locality’s disbursements related to the program, it was noted that procurement policies were not being followed. In 3 of 25 instances, credit card purchases were not properly approved. Criteria: CSLFRF funds may be used for eligible expenses subject to restrictions set forth in Treasury’s Interim Final Rule and Final Rule at 31 CFR Part 35. Also, 2 CFR Part 200 section 303 requires effective control over, and accountability for, all funds. According to the City’s procurement policy, department managers and directors are supposed to review and approve credit card purchases on a monthly basis. Review includes ensuring appropriate supporting documentation is included. Documentation should support that transactions are for allowable expenses. Cause: Though the City has controls that push compliance, monitoring and enforcement by Finance is lacking. Additionally, the volume of transactions make monitoring challenging. Some transaction support and approval are routed electronically through US Bank for automation, but there are thousands of monthly transactions. Effect: Noncompliance with federal grant requirements with regard to disbursements. Questioned Cost Amount: Not applicable. Perspective Information: Three out of twenty-five transactions. Recommendation: We recommend disbursing funds in accordance with the City’s procurement policy including a process that requires approval of all credit card purchases. View of Responsible Officials and Planned Corrective Action: Management concurs with the recommendation and will ensure that procurement policies including those over credit card purchases will be adhered to. Starting in fiscal year 2023 communication to department directors occurred reinforcing that reviewing and approving financial transactions is necessary under City policy. The City’s Department of Finance on a monthly basis is monitoring P-Card compliance with standard metrics and has enhanced communication of internal deadline dates for coding and approving transactions. Follow-up is performed by the Accounts Payable coordinator to address issues with individual users and departments who have unapproved transactions. This practice will continue moving forward with issues of continued non-compliance by users and directors potentially resulting in revoking privileges of using city purchasing cards.
CORRECTIVE ACTION PLAN March 26, 2024 City of Roanoke, Virginia respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Brown, Edwards & Company, L.L.P. 3906 Electric Road Roanoke, VA 24018 Audit period: June 30, 2023 The findings from the June 30, 2023 Schedule of Findings and Questioned Costs (the "Schedule") are discussed below. The findings are numbered consistently with the number assigned in the Schedule. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT 2023-001: Workforce Investment Opportunity Cluster - Assistance Listing #17.258117.259 / 17.277 / 17.278, Subrecipient Monitoring Condition: During our review of subrecipient monitoring, we noted that the City's monitoring was not being performed according to the formal written policy. While monitoring was performed and documented during the second half of fiscal year 2023, there was a lack of evidence of testing and suggestions to the subrecipient during the first half of fiscal year 2023. Criteria: According to 2CFR 200.33l(a) of the 0MB Compliance Supplement, the City should make subrecipients aware of award information. According to the City's Program Participant Monitoring Plan, the City is supposed to conduct subrecipient monitoring on a semi-annual basis which should include desk reviews of payroll, disbursements, and other financial items. Cause: Staff turnover, particularly for the role of grant accountant, caused these procedures to be overlooked. Management prioritized core operating activities with staffing vacancies in lieu of monitoring activities. Management asserts staff went onsite to review key documents, as documented by email activities, but did not document specific items subject to review. Effect: Noncompliance with federal grant requirements with regard to subrecipient monitoring as well as an increased risk of subrecip1ent misusing funds. Questioned Cost Amount: Not applicable. Perspective Information: One out of two awards Recommendation: We recommend performing subrecipient monitoring in accordance with the City's guidelines and following the procedures laid out in the Program Participant Monitoring Plan. Corrective Action: Management concurs with the recommendation and will ensure that follow-up occurs regarding information provided by business owners. Loss of staff in this accountability area resulted in inquiry and reviews conducted by varying personnel the past few fiscal years. The Accounting Supervisor and the Accounts Payable coordinator, in the absence of a Grant Accountant, conducted the first semi-annual visit for fiscal year 2023. A grant accountant was hired in Spring 2023 along with an Accounting Manager, who were able to conduct the second visit in June 2023. Revisions to the policies and procedures were made following the June visit along with developing formalized documentation templates that show what was subject to monito ring. Fiscal year 2024 monitoring in January 2024 has been completed with follow-up to occur in June 2024. 2023-002: Coronavirus State and Local Fiscal Recovery Funds -Assistance Listing #21.027, Disbursements Condition: During our review of the locality's disbursements related to the program, it was noted that procurement policies were not being followed. In 3 of 25 instances, credit card purchases were not properly approved. Criteria: CSLFRF funds may be used for eligible expenses subject to restrictions set forth in Treasury's Interim Final Rule and Final Rule at 31 CFR Part 35. Also, 2 CFR Part 200 section 303 requires effective control over, and accountability for, all funds. According to the City's procurement policy, department managers and directors are supposed to review and approve credit card purchases on a monthly basis. Review includes ensuring appropriate supporting documentation is included. Documentation should support that transactions are for allowable expenses. Cause: Though the City has controls that push compliance, monitoring and enforcement by Finance is lacking. Additionally, the volume of transactions make monitoring challenging. Some transaction support and approval are routed electronically through US Bank for automation, but there are thousands of monthly transactions. Effect: Noncompliance with federal grant requirements with regard to disbursements. Questioned Costs: Not applicable. Perspective Information: Three out twenty-five transactions Recommendation: We recommend disbursing funds in accordance with the City's procurement policy including a process that requires approval of all credit card purchases. Corrective Action: Management concurs with the recommendation and will ensure that procurement policies including those over credit card purchases will be adhered to. Starting in fiscal year 2023 communication to department directors occurred reinforcing that reviewing and approving financial transactions is necessary under City policy. The City's Department of Finance on a monthly basis is monitoring P-Card compliance and has enhanced communication of internal deadline dates for coding and approving transactions. Follow-up is performed by the Accounts Payable coordinator to address issues with individual users and departments who have unapproved transactions. This practice will continue moving forward with issues of continued non-compliance by users and directors potentially resulting in revoking privileges of using city purchasing cards. 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 0MB 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: Three out of twenty-five transactions 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. 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. If the Federal Audit Clearinghouse has questions regarding this plan, please call Andrea Trent, Financial Management Consultant at 540-853-5224. Sincerely yours, Andrea F. Trent Financial Management Consultant
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.
Show full finding ▾Hide full finding ▴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.
CORRECTIVE ACTION PLAN March 26, 2024 City of Roanoke, Virginia respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Brown, Edwards & Company, L.L.P. 3906 Electric Road Roanoke, VA 24018 Audit period: June 30, 2023 The findings from the June 30, 2023 Schedule of Findings and Questioned Costs (the "Schedule") are discussed below. The findings are numbered consistently with the number assigned in the Schedule. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT 2023-001: Workforce Investment Opportunity Cluster - Assistance Listing #17.258117.259 / 17.277 / 17.278, Subrecipient Monitoring Condition: During our review of subrecipient monitoring, we noted that the City's monitoring was not being performed according to the formal written policy. While monitoring was performed and documented during the second half of fiscal year 2023, there was a lack of evidence of testing and suggestions to the subrecipient during the first half of fiscal year 2023. Criteria: According to 2CFR 200.33l(a) of the 0MB Compliance Supplement, the City should make subrecipients aware of award information. According to the City's Program Participant Monitoring Plan, the City is supposed to conduct subrecipient monitoring on a semi-annual basis which should include desk reviews of payroll, disbursements, and other financial items. Cause: Staff turnover, particularly for the role of grant accountant, caused these procedures to be overlooked. Management prioritized core operating activities with staffing vacancies in lieu of monitoring activities. Management asserts staff went onsite to review key documents, as documented by email activities, but did not document specific items subject to review. Effect: Noncompliance with federal grant requirements with regard to subrecipient monitoring as well as an increased risk of subrecip1ent misusing funds. Questioned Cost Amount: Not applicable. Perspective Information: One out of two awards Recommendation: We recommend performing subrecipient monitoring in accordance with the City's guidelines and following the procedures laid out in the Program Participant Monitoring Plan. Corrective Action: Management concurs with the recommendation and will ensure that follow-up occurs regarding information provided by business owners. Loss of staff in this accountability area resulted in inquiry and reviews conducted by varying personnel the past few fiscal years. The Accounting Supervisor and the Accounts Payable coordinator, in the absence of a Grant Accountant, conducted the first semi-annual visit for fiscal year 2023. A grant accountant was hired in Spring 2023 along with an Accounting Manager, who were able to conduct the second visit in June 2023. Revisions to the policies and procedures were made following the June visit along with developing formalized documentation templates that show what was subject to monito ring. Fiscal year 2024 monitoring in January 2024 has been completed with follow-up to occur in June 2024. 2023-002: Coronavirus State and Local Fiscal Recovery Funds -Assistance Listing #21.027, Disbursements Condition: During our review of the locality's disbursements related to the program, it was noted that procurement policies were not being followed. In 3 of 25 instances, credit card purchases were not properly approved. Criteria: CSLFRF funds may be used for eligible expenses subject to restrictions set forth in Treasury's Interim Final Rule and Final Rule at 31 CFR Part 35. Also, 2 CFR Part 200 section 303 requires effective control over, and accountability for, all funds. According to the City's procurement policy, department managers and directors are supposed to review and approve credit card purchases on a monthly basis. Review includes ensuring appropriate supporting documentation is included. Documentation should support that transactions are for allowable expenses. Cause: Though the City has controls that push compliance, monitoring and enforcement by Finance is lacking. Additionally, the volume of transactions make monitoring challenging. Some transaction support and approval are routed electronically through US Bank for automation, but there are thousands of monthly transactions. Effect: Noncompliance with federal grant requirements with regard to disbursements. Questioned Costs: Not applicable. Perspective Information: Three out twenty-five transactions Recommendation: We recommend disbursing funds in accordance with the City's procurement policy including a process that requires approval of all credit card purchases. Corrective Action: Management concurs with the recommendation and will ensure that procurement policies including those over credit card purchases will be adhered to. Starting in fiscal year 2023 communication to department directors occurred reinforcing that reviewing and approving financial transactions is necessary under City policy. The City's Department of Finance on a monthly basis is monitoring P-Card compliance and has enhanced communication of internal deadline dates for coding and approving transactions. Follow-up is performed by the Accounts Payable coordinator to address issues with individual users and departments who have unapproved transactions. This practice will continue moving forward with issues of continued non-compliance by users and directors potentially resulting in revoking privileges of using city purchasing cards. 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 0MB 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: Three out of twenty-five transactions 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. 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. If the Federal Audit Clearinghouse has questions regarding this plan, please call Andrea Trent, Financial Management Consultant at 540-853-5224. Sincerely yours, Andrea F. Trent Financial Management Consultant
FAC accepted this audit on March 30, 2023 — management decision was due September 30, 2023.
During our review of subrecipient monitoring, we noted that the City?s semi-annual subrecipient monitoring scheduled for February 2022 was not performed. Criteria: According to the City?s Program Participant Monitoring Plan, the City is supposed to conduct subrecipient monitoring on a semi-annual basis which should include desk reviews of payroll, disbursements, and other financial items. Cause: Staff turnover, particularly for the role of grant accountant, caused these procedures to be overlooked. Effect: Noncompliance with federal grant requirements with regard to subrecipient monitoring as well as risk of subrecipient misusing funds. Questioned Cost Amount: Not applicable. Perspective Information: Not applicable. Recommendation: We recommend performing subrecipient monitoring in accordance with the City?s guidelines and following the procedures laid out in the Program Participant Monitoring Plan. View of Responsible Officials and Planned Corrective Action: Management concurs with the recommendation and will ensure that follow-up occurs regarding information provided by business owners. Loss of staff in this accountability area resulted in an inquiry and reviews conducted via electronic means verses a physical. Delivered information was reviewed and acknowledged by Accounting Supervisor; however, physical visit did not occur. The Accounting Supervisor and the Accounts Payable Co-coordinator, in the absence of a Grant Accountant, have conducted the first semi-annual visit for FY23. Follow-up information has been received upon request and the final physical review has been scheduled for Spring of 2023
Show full finding ▾Hide full finding ▴2022-001: Workforce Investment Opportunity Cluster ? Assistance Listing #17.258/17.259/17.277/17.278, Subrecipient Monitoring Condition: During our review of subrecipient monitoring, we noted that the City?s semi-annual subrecipient monitoring scheduled for February 2022 was not performed. Criteria: According to the City?s Program Participant Monitoring Plan, the City is supposed to conduct subrecipient monitoring on a semi-annual basis which should include desk reviews of payroll, disbursements, and other financial items. Cause: Staff turnover, particularly for the role of grant accountant, caused these procedures to be overlooked. Effect: Noncompliance with federal grant requirements with regard to subrecipient monitoring as well as risk of subrecipient misusing funds. Questioned Cost Amount: Not applicable. Perspective Information: Not applicable. Recommendation: We recommend performing subrecipient monitoring in accordance with the City?s guidelines and following the procedures laid out in the Program Participant Monitoring Plan. View of Responsible Officials and Planned Corrective Action: Management concurs with the recommendation and will ensure that follow-up occurs regarding information provided by business owners. Loss of staff in this accountability area resulted in an inquiry and reviews conducted via electronic means verses a physical. Delivered information was reviewed and acknowledged by Accounting Supervisor; however, physical visit did not occur. The Accounting Supervisor and the Accounts Payable Co-coordinator, in the absence of a Grant Accountant, have conducted the first semi-annual visit for FY23. Follow-up information has been received upon request and the final physical review has been scheduled for Spring of 2023
D EPARTMEN T OF FINANCE Ci ty of Roanoke 215 Church Avenue, SW Roanoke, VA 240 11 (540) 853-28 24 www.roanok eva.gov CORRECTIVE ACTION PLAN March 29, 2022 The Federal Audit Clearinghouse: The City of Roanoke, Virginia respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Brown, Edwards & Company, L.L.P. 319 McClanahan St. SW, Roanoke, VA 24014 Audit period: June 30, 2022 The findings from the June 30, 2022 Schedule of Findings and Questioned Costs (the "Schedule") are discussed below. The findings are numbered consistently with the number assigned in the Schedule. FINDINGS - FINANCIAL STATEMENT AUDIT CY - Financial Statement - None CY- Federal Major Program 2022-001: Workforce Investment Opportunitv Cluster #17.258/17.259/17.278, Subrecipient Monitoring Assistance Listing Condition: During our review of subrecipient monitoring, we noted that the City's semi-annual subrecipient monitoring scheduled for February 2022 was not performed. Criteria: According to the City's Program Participant Monitoring Plan, the City is supposed to conduct subrecipient monitoring on a semi-annual basis which should include desk reviews of payroll, disbursements, and other financial items. Cause: Staff turnover, particularly for the role of grant accountant, caused these procedures to be overlooked. Effect: Noncompliance with federal grant requirements with regard to subrecipient monitoring as well as risk of subrecipient misusing funds. Questioned Cost Amount: Not applicable. Perspective Information: Not applicable. Recommendation: We recommend performing subrecipient monitoring in accordance with the City's guidelines and following the procedures laid out in the Program Participant Monitoring Plan. View of Responsible Officials and Planned Corrective Action: Management concurs with the recommendation and will ensure that follow up occurs regarding information provided by business owners. Loss of staff in this accountability area resulted in an inquiry and reviews conducted via electronic means verses a physical. Delivered information was reviewed and acknowledged by Accounting Supervisor, however physical visit did not occur. The Accounting Supervisor and the Accounts Payable Co-coordinator, in the absence of a Grant Accountant, have conducted the first semi-annual visit for FY23. Follow-up information has been received upon request and the final physical review has been scheduled for Spring of 2023. CY - Commonwealth - Auditor of Public Accounts - Fire Program A required audit procedure is to obtain a copy of the locality's completed Annual Report and Disbursement Agreement forms submitted to the Department of Fire Programs for the applicable fiscal year under audit. The procedure includes ensuring that the Annual Report and Disbursement Agreement forms are properly completed in accordance with Fire Programs' requirements and reconciled amounts per the Annual Report to the locality's accounting records. It was noted in the current year that the amount of revenues and expenditures reported to the Department of Fire Programs did not agree to the underlying accounting records. We recommend the Annual Report be reviewed and reconciled to the general ledger before submission. ManagementJs response: Management concurs with the recommendation and wilt ensure that follow up occurs regarding information provided. Employee transition and lack of training resulted in discrepancy. The Fire Program reports were submitted in advance of finalization of the disbursement register. This finding will be duplicated for FY22 report as well. Training has been provided, a procedure has been developed and the Accounting Supervisor is included in review of reporting prior to submission. PY - Financial Statement Audit Adjustments (Significant Deficiency) - Cleared PY - Federal Major Program COVID Business Grants - Cleared PY - Commonwealth - still applicable Disclosure Statements Five of 83 disclosure statements were not filed timely. Management's response: Management concurs with the recommendation and will ensure that follow up occurs regarding information provided. Staffing vacancies resulted in this delay. Training has been provided to new employee and an expectation of this issue being cleared is anticipated for FY23. Highway Maintenance Testing Six of the ten time cards tested contained data that could not be allocated to a specific work order. We recommend all departments use the newly adopted time reporting software to ensure labor is charged to the correct work order. Management concurs with the recommendation and will ensure that follow up occurs regarding information provided. [this testing is one year behind so improvements implemented in FY22 will be reflected in FY23 testing] PY - Commonwealth - no longer applicable Social Services - Special Welfare- Treasurer Reimbursements Social Services - Special Welfare- Unexpended Funds If the Federal Audit Clearinghouse has questions regarding this plan, please call Brent Robertson, Chief Financial Officer at (540) 853-1556. Respectfully submitted, Brent Robertson ACM/Chief Financial Officer
FAC accepted this audit on February 27, 2022 — management decision was due August 27, 2022.
During our review of small business grant disbursements, we noted staff tasked with reviewing and approving grant applications did not follow up on information provided by business owners even when concerns were brought to their attention. Criteria: The City had a fiscal responsibility to not only review and approve applications before disbursements but also to monitor the use of those funds after disbursement as necessary, particularly if circumstances arise that would give the City cause for concern. Cause: Inadequate internal control design over small business grant disbursement procedures and processes. Effect: Small business grant funds could be disbursed to a business that does not meet the qualifications. Questioned Cost Amount: Not applicable. Perspective Information: Not applicable. Recommendation: We recommend following up on information provided by the business owner that is of concern or questionable. View of Responsible Officials and Planned Corrective Action: Management concurs with the recommendation and will ensure that follow up occurs regarding information provided by business owners.
Show full finding ▾Hide full finding ▴2021-002: COVID-19 Coronavirus Relief Funds ? Assistance Listing #21.019, Activities Allowed or Unallowed, Controls Over Business Grants Condition: During our review of small business grant disbursements, we noted staff tasked with reviewing and approving grant applications did not follow up on information provided by business owners even when concerns were brought to their attention. Criteria: The City had a fiscal responsibility to not only review and approve applications before disbursements but also to monitor the use of those funds after disbursement as necessary, particularly if circumstances arise that would give the City cause for concern. Cause: Inadequate internal control design over small business grant disbursement procedures and processes. Effect: Small business grant funds could be disbursed to a business that does not meet the qualifications. Questioned Cost Amount: Not applicable. Perspective Information: Not applicable. Recommendation: We recommend following up on information provided by the business owner that is of concern or questionable. View of Responsible Officials and Planned Corrective Action: Management concurs with the recommendation and will ensure that follow up occurs regarding information provided by business owners.
February 24, 2022 CORRECTIVE ACTION PLAN Federal Audit Clearinghouse: The City of Roanoke, Virginia respectfully submits the following corrective action plan for the year ended June 30, 2021. Name and address of independent public accounting firm: Brown, Edwards & Company, L.L.P. 319 McClanahan Street, SW Roanoke, VA 24014 Audit period: June 30, 2021 The findings from the June 30, 2021 Schedule of Findings and Questioned Costs (the ?Schedule?) are discussed below. The findings are numbered consistently with the number assigned in the Schedule. FINDINGS ? FINANCIAL STATEMENT AUDIT 2021-001: Audit Adjustments (Significant Deficiency) Condition: During the audit, we noted that several year-end audit adjustments were required to ensure that the financials were prepared in accordance with accounting principles generally accepted in the United States of America. The adjustments were related to debt and capital assets. Criteria: Audit adjustments were required to correct balances in order for the financial statements to be presented in accordance with accounting principles generally accepted in the United States of America. Cause: With regard to capital assets and debt, it appears that the rollforward workbook and supporting schedules were not reviewed before year-end entries were made resulting in additional adjustments. Effect: There is an increased risk of financial statement misstatement. Recommendation: We recommend establishing procedures in which qualified supervisors are reviewing year- end workpapers and reconciliations that feed into the final general ledger and focusing on the accuracy of year-end balances. View of Responsible Officials and Planned Corrective Action: During fiscal year 2021, the City?s Finance Department experienced significant transition of staff at various positions, which diminished the technical abilities and required departmental personnel available with the level of experience to fully analyze the myriad of transactions the City enters into annually. A fully trained and experienced staff is required in order to effectively, efficiently, compliantly, and timely prepare the City?s Annual Comprehensive Financial Report (ACFR) in accordance with Generally Accepted Accounting Principles (GAAP). This diminished level of technical strength in the City Finance Department has been a detriment and impedance to timely external audit preparation. The continuance of turnover in staff in the Finance Department has impacted the adjustments noted in the preceding paragraph. The capital asset and long term debt issues were all related to policies and procedures that were unfamiliar to new and inexperienced staff members. Procedures have been established going forward to strengthen the review process of workpapers and reconciliations. A continued focus on staff retention, education, and development is key to strengthening our technical abilities, which will in turn reduce the number of year-end adjustments required for timely preparation of the annual external financial reporting. FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAM AUDIT 2021-002: COVID-19 Coronavirus Relief Funds ? Assistance Listing #21.019, Activities Allowed or Unallowed, Controls Over Business Grants Condition: During our review of small business grant disbursements, we noted staff tasked withreviewing and approving grant applications did not follow up on information provided by business owners even when concerns were brought to their attention. Criteria: The City had a fiscal responsibility to not only review and approve applications before disbursements but also to monitor the use of those funds after disbursement as necessary, particularly if circumstances arise that would give the City cause for concern. Cause: Inadequate internal control design over small business grant disbursement procedures and processes. Effect: Small business grant funds could be disbursed to a business that does not meet the qualifications. Questioned Cost Amount: Not applicable. Perspective Information: Not applicable. Recommendation: We recommend following up on information provided by the business owner that is of concern or questionable. View of Responsible Officials and Planned Corrective Action: Management concurs with the recommendation and will ensure that follow up occurs by the Economic Development Authority (EDA) regarding specific information provided by business owners in the grant application process. Adequate and meaningful documentation will be required to substantiate amounts requested in any specific grant application. The EDA will be responsible for maintaining adequate internal controls to insure these procedures are maintained and operational. FINDINGS ? COMMONWEALTH OF VIRGINIA 2021-003: Commonwealth of Virginia ? Disclosure Statements Condition: Seven of 83 disclosure statements were not filed timely and three of 83 statements were not received. Recommendations: We recommend implementing procedures to ensure that all disclosure statements are filed timely. View of Responsible Officials and Planned Corrective Action: Management concurs with the recommendation and will ensure that disclosures are filed timely. 2021-004: Commonwealth of Virginia ? Highway Maintenance Testing Condition: Six of ten time cards tested contained data that could not be allocated to a specific work order. Recommendations: We recommend all departments use the newly adopted time reporting software to ensure labor is charged to the correct work order. View of Responsible Officials and Planned Corrective Action: Management concurs with the recommendation and will require usage of newly adopted time reporting software to record labor associated with work orders 2021-005: Commonwealth of Virginia ? Social Services ?Special Welfare Condition: In eight of twelve months, the Office of the Treasurer did not receive timely reimbursements from the Department of Social Services for Special Welfare expenditures. Recommendations: We recommend implementing procedures to ensure timely reimbursements. View of Responsible Officials and Planned Corrective Action: All SSA/SSI and stimulus checks received by DSS have been charted and reconciled by the ACPS to the Special Welfare bank statements as of December 17, 2021. Interest has been calculated for the individual accounts. $5,033.19 has been identified as needing to be returned to the Social Security Administration due to either a potential error on SSA's part or because the youth is no longer in care. An additional $6,096.10 is under review as likely needing to be returned. $12,560.56 has been identified as needing to be paid to SSA/SSI recipients or guardians. Within one week, the APSC intends to have these funds approved for distribution. Checks will be issued at the start of the calendar year (delay due to AP year-end processing). Reimbursements to the city's general fund from the Special Welfare account are currently being calculated. We anticipate these reimbursement figures will be available before the end of the year. Treasurer's reports detailing monthly receipts and reimbursements will be issued by the end of the calendar year. This will include 12 individual reports. Once fund distribution has been made, reimbursement made, and treasurer reports submitted, the Special Welfare process will be up to date. Detailed instructions and operating procedures for the Special Welfare functions of the assigned Account Clerk will be compiled, tested, and completed in order to ensure ongoing adherence to the related Code of Virginia and Federal Policy and requirements for the processing and handling of these types of funds, as well as providing a resource in case of turnover within the DSS Accounting Unit. 2021-006: Commonwealth of Virginia ? Social Services- Special Welfare Condition: In eight of the twelve months, unexpended funds Special Welfare funds and funds dedicated to Special Welfare were not returned to individuals leaving the Special Welfare program, refunded to the funding source or escheated to the state as unclaimed property. Recommendations: We recommend implementing procedures to ensure timely returning of funds. View of Responsible Officials and Planned Corrective Action: See response to finding 2021-005. If the Federal Audit Clearinghouse has questions regarding this plan, please call Amelia Merchant, Director of Finance at (540) 853-6805. Respectfully submitted, Amelia Merchant Director of Finance
FAC accepted this audit on March 31, 2021 — management decision was due October 1, 2021.
Two instances in which the expenditure was not directly related to the COVID-19 pandemic. Criteria: Coronavirus Relief Funds can only be used for COVID-19 related expenditures. Cause: Management review of expenditures did not detect that an expenditure was not directly related to the COVID-19 response. Effect: The ineligible expenditures were inappropriately charged to the program. Questioned Cost Amount: The amount of these transactions totaled $373.77 from our sample selection. Those questioned costs would project to $755.61 over the total population. Perspective Information: This finding occurred in two of 25 accounts payable disbursements selected for testing. Recommendation: We recommend reviewing supporting documentation closely to ensure they are directly related to response to the COVID-19 pandemic. View of Responsible Officials and Planned Corrective Action: Management concurs with the recommendation and will review supporting documentation to ensure costs are directly related to the response to the COVID-19 pandemic.
Show full finding ▾Hide full finding ▴2020-004: Coronavirus Relief Funds ? CFDA #21.019 Allowable Costs Condition: Two instances in which the expenditure was not directly related to the COVID-19 pandemic. Criteria: Coronavirus Relief Funds can only be used for COVID-19 related expenditures. Cause: Management review of expenditures did not detect that an expenditure was not directly related to the COVID-19 response. Effect: The ineligible expenditures were inappropriately charged to the program. Questioned Cost Amount: The amount of these transactions totaled $373.77 from our sample selection. Those questioned costs would project to $755.61 over the total population. Perspective Information: This finding occurred in two of 25 accounts payable disbursements selected for testing. Recommendation: We recommend reviewing supporting documentation closely to ensure they are directly related to response to the COVID-19 pandemic. View of Responsible Officials and Planned Corrective Action: Management concurs with the recommendation and will review supporting documentation to ensure costs are directly related to the response to the COVID-19 pandemic.
CORRECTIVE ACTION PLAN March 19, 2021 The Federal Audit Clearinghouse: The City of Roanoke, Virginia respectfully submits the following corrective action plan for the year ended June 30, 2020. Name and address of independent public accounting firm: Brown, Edwards & Company, L.L.P. 319 McClanahan St. SW, Roanoke, VA 24014 Audit period: June 30, 2020 The findings from the June 30, 2020 Schedule of Findings and Questioned Costs (the ?Schedule?) are discussed below. The findings are numbered consistently with the number assigned in the Schedule. FINDINGS ? FINANCIAL STATEMENT AUDIT 2020-001: Audit Adjustments (Material Weakness) Condition: During the audit, we noted that several year-end audit adjustments were required to ensure that the financials were prepared in accordance with accounting principles generally accepted in the United States of America. The adjustments were related to cash, unearned revenue, liabilities, debt, pension, and capital assets. Criteria: Audit adjustments were required to correct balances in order for the financial statements to be presented in accordance with accounting principles generally accepted in the United States of America. Cause: With regard to capital assets, it appears that the rollforward workbook and depreciation schedules were not reviewed before year-end entries were made. The City?s policy on recording unearned revenue was not applied consistently as year-end entries were made. With regard to cash, the June bank reconciliation was reviewed but reconciling items were not recorded properly. The IBNR liability was not adjusted to incorporate current information. Unearned revenue was recorded using an incorrect report. The accrued interest entry was not reviewed before entries were made. Bond premiums and deferred costs related to the partial refunding of bonds were not removed from amortization schedules. Pension schedules were not reviewed before entries were made, resulting in additional adjustments to deferred inflows and outflows. Effect: There is an increased risk of financial statement misstatement. Recommendation: We recommend establishing procedures in which qualified supervisors are reviewing year-end workpapers and reconciliations that feed into the final general ledger and focusing on the accuracy of year-end balances. Corrective Action: During fiscal year 2020, the City?s Finance Department experienced significant transitions at the managerial, supervisory, and staff levels, which diminished the technical abilities and required departmental personnel available with the level of experience to fully analyze the myriad of transactions the City enters into annually. A fully-trained and experienced staff is required in order to effectively, efficiently, compliantly, and timely prepare the City?s Comprehensive Annual Financial Report (CAFR) in accordance with accounting principles generally accepted in the United States of America (GAAP). This diminished level of technical strength in the City Finance Department has been a detriment and impedance to timely external audit preparation. The turnover of staff in the Finance Department has impacted the adjustments noted in the preceding paragraph. Management level, supervisory level, and several staff level positions were vacant for a portion of the 2020 fiscal year. The capital asset, deferred revenue, and cash reconciliation issues were all related to policies and procedures that were unfamiliar to new and inexperienced staff members. Procedures have been established going forward to strengthen the review process of workpapers and reconciliations. Staff retention, education, and development is key to strengthening our technical abilities, which will in turn reduce the number of year-end adjustments required for timely preparation of the annual external financial reporting. These procedures should be established by the end of Q4 of fiscal year 2021. 2020-002: Audit Adjustments ? Civic Facilities (Significant Deficiency) Condition: A fundamental concept of internal controls is the separation of duties. No one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. A proper segregation of duties has not been established in functions related to journal entries, monthly financial statements, accounts receivable reconciliations, and the cash vaults at the Civic Facilities. Criteria: During our review of the Civic Facilities? journal entries, monthly financial statements, and accounts receivable reconciliations we noted instances where an accountant was preparing but no supervisor review or approval was documented. We also noted an instance in which a manager had access to the cash vault, handled cash, and prepared deposit slips without supervisor review. Finally, we noted that the Accounting Supervisor has administrative rights to accounting software. Cause: Civic Facilities did not have sufficient segregation of duties in place during the year. Effect: There is a risk that misstatements or fraudulent activity could go undetected. Recommendation: We recommend establishing segregation of duties as much as possible, which would include supervisor review. We also recommend that supervisors sign and date their reviews. Corrective Action: The auditee concurs that the daily journal entries that are prepared by the Senior Accountant will be reviewed and signed off by the Accounting Supervisor. Journal entries that are prepared by the Accounting Supervisor will be reviewed and signed by the General Manager. With regard to the vaults and cash handling, the daily ticket sales reports, worksheets, and deposit ticket prepared by the Director of Ticketing, will be reviewed and signed by the Accounting Supervisor. This procedural change will be implemented Q3 if fiscal year 2021. 2020-003: Bank and Investment Reconciliations (Significant Deficiency) Condition: During our review of bank and investment reconciliations, we noted that there was no timestamp to identify who prepared and reviewed the reconciliations and when these processes were completed. Criteria: Bank and investment reconciliations were not appropriately documented. Cause: Reconciliations were being completed but not documented. Supervisory review, if performed, was not documented. Effect: Risk that accounting and bank errors or fraud is not being prevented and detected if reconciliations are not performed timely and reviewed by supervisors. Recommendation: We recommend establishing a timestamp procedure to identify who prepared and reviewed and when these processes were completed. Corrective Action: As mentioned in the previous paragraphs, the turnover of staff in the Finance Department has directly impacted performance of the bank reconciliation process. The Cash Accountant position was vacant for several months during fiscal year 2020 before being filled prior to the end of the fiscal year. Future work planning will require vacant position responsibilities to be temporarily assigned to existing staff until the accounting position is filled, and responsibilities are assumed by the new staff member. These procedures will be implemented starting Q3 of fiscal year 2021. FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAM AUDIT 2020-004: Coronavirus Relief Funds ? CFDA#21.019 Allowable Costs Condition: Two instances in which the expenditure was not directly related to the COVID-19 pandemic. Criteria: Coronavirus Relief Funds can only be used for COVID-19 related expenditures. Cause: Management review of expenditures did not detect that an expenditure was not directly related to the COVID-19 response. Effect: The ineligible expenditures were inappropriately charged to the program. Recommendation: We recommend reviewing supporting documentation closely to ensure they are directly related to response to the COVID-19 pandemic. Corrective Action: Management concurs with the recommendation and will review supporting documentation to ensure costs are directly related to the response to the COVID-19 pandemic. These procedures will be implemented starting Q4 of fiscal year 2021. 2020-005: Commonwealth of Virginia ? Disclosure Statements Condition: Nine of 73 disclosure statements were not filed timely and four of 73 statements were not received. Recommendations: We recommend implementing procedures to ensure that all disclosure statements are filed timely. Corrective Action: Management concurs with the recommendation and will insure that disclosures are filed timely starting in Q3 of fiscal year 2021. If the Federal Audit Clearinghouse has questions regarding this plan, please call Amelia Merchant, Director of Finance at (540) 853-6802. Respectfully submitted, Amelia Merchant Director of Finance
FAC accepted this audit on February 13, 2020 — management decision was due August 13, 2020.
Recertification for continued benefits was not completed timely for two individuals. Criteria: Per the Compliance Supplement for the Medical Assistance Program, the City is required to recertify individuals for medical benefits in order to facilitate the continuance or discontinuance of benefits based on changes in circumstances that could impact eligibility. Cause: In the first instance, the recertification application was received timely but not processed by the case worker for several months. The recipient continued to receive benefits without recertification. In the second instance, the recertification application was not received timely and benefits continued to be provided to the recipient. Both of these instances were handled by the same case worker. Effect: Benefits continued to be received by individuals who had not completed recertification. Context: Two instances out of 25 tested. Recommendation: We recommend that case workers and supervisors monitor recertification deadlines closely for Medical Assistance Program recipients.
Show full finding ▾Hide full finding ▴2019-001: Medical Assistance Program ? CFDA # 93.778 Condition: Recertification for continued benefits was not completed timely for two individuals. Criteria: Per the Compliance Supplement for the Medical Assistance Program, the City is required to recertify individuals for medical benefits in order to facilitate the continuance or discontinuance of benefits based on changes in circumstances that could impact eligibility. Cause: In the first instance, the recertification application was received timely but not processed by the case worker for several months. The recipient continued to receive benefits without recertification. In the second instance, the recertification application was not received timely and benefits continued to be provided to the recipient. Both of these instances were handled by the same case worker. Effect: Benefits continued to be received by individuals who had not completed recertification. Context: Two instances out of 25 tested. Recommendation: We recommend that case workers and supervisors monitor recertification deadlines closely for Medical Assistance Program recipients.
December 30, 2019 The Federal Audit Clearinghouse: The City of Roanoke, Virginia respectfully submits the following corrective action plan for the year ended 6/30/2019. Name and address of independent public accounting firm: Brown, Edwards, and Company, L.L.P. 217 E. New Street Kingsport, TN 37660 Audit period: June 30, 2019 The findings from the year ended June 30, 2019 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS ? FINANCIAL STATEMENT AUDIT None. FINDINGS? MAJOR FEDERAL AWARD PROGRAM AUDIT 2019-001: Medical Assistance Program ? CFDA # 93.778 Condition: Recertification for continued benefits was not completed timely for two individuals. Criteria: Per the Compliance Supplement for the Medical Assistance Program, the City is required to recertify individuals for medical benefits in order to facilitate the continuance or discontinuance of benefits based on changes in circumstances that could impact eligibility. Cause: In the first instance, the recertification application was received timely but not processed by the case worker for several months. The recipient continued to receive benefits without recertification. In the second instance, the recertification application was not received timely and benefits continued to be provided to the recipient. Both of these instances were handled by the same case worker. Effect: Benefits continued to be received by individuals who had not completed recertification. Context: Two instances out of 25 tested. Recommendation: We recommend that case workers and supervisors monitor recertification deadlines closely for Medical Assistance Program recipients. Corrective Action Plan: Management agrees with finding. Agency will utilize reports and other available data sources to closely monitor Medicaid renewals to ensure timely action is taken by system deadlines. Supervisors will address any occurrences of overdue processing with individual workers to prevent repeated errors and issuance of benefits beyond the end of the certification period. FINDINGS ? COMMONWEALTH OF VIRGINIA None. If the Federal Audit Clearinghouse has questions regarding this plan, please call Amelia Merchant, Director of Finance at (540)853-6805. Respectfully submitted, Amelia Merchant Director of Finance
FAC accepted this audit on December 27, 2018 — management decision was due June 27, 2019.
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