City of Harahan

2024-003 PROCEDURES OVER PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Criteria: The City should have systems of internal accounting control which ensures the schedule of expenditures of federal awards (SEFA) is presented in accordance with Title I U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) on a timely basis. Universe/Population: Not applicable. Condition: The City did not perform final reconciliations of the American Rescue Plan Act (ARPA) and the Federal Emergency Management Agency (FEMA) expenditures necessary to prepare an accurate and complete SEFA on a timely basis. Cause: Due to the complexity of the calculations for recognizing ARPA and FEMA expenditures on the SEFA, the City provided adjustments to the original SEFA provided to the auditors. Effect: The original SEFA required adjustments necessary to correct the balances reported as federal expenditures for ARPA and FEMA. Questioned Costs: For the purposes of this finding, there were no questioned costs. Recommendation: The City should strengthen its controls over the reconciliation of federal program expenditures and associated calculations to ensure the information and balances that are accumulated and reported on the SEFA are an accurate representation of federal expenditures and based on the reporting requirements provided in the federal award and the compliance supplement. Management’s Response: The City concurs with the observation and will implement procedures in 2024 as recommended.

2024-004 COMPLIANCE AND INTERNAL CONTROL OVER PROCUREMENT – ARPA Assistance Listing: 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: The American Rescue Plan Act (ARPA) provided significant funding to state, local, and tribal governments to address the public health and economic impacts of the COVID-19 pandemic. These funds are subject to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200), which include the specific standards under Public Bid Law. Condition: For the year ended December 31, 2024, twelve vendors with expenditures totaling $ 2,179,730 were selected for testing. We noted for one of the vendors selected for testing, the City was unable to provide any contract or bid support for the project, which incurred $434,190 of expenditures during the year. Universe/Population: The total population for procurement considerations was all vendors of the American Rescue Plan Act whose transactions for the year ended December 31, 2024, exceeded the micro-purchase threshold of $10,000. Payroll and benefit-related transactions were excluded from the population. Based on these requirements, the population consisted of twenty-three vendors totaling $2,790,345. Sample size : A sample of 12 vendors were selected for testing based on those with total expenditures over $10,000 during the fiscal year. Cause: The City did not adhere to compliance with Uniform Guidance Federal regulations per 2 CFR section 200.320 and its established procurement policy. The City did not maintain appropriate records needed to evidence compliance with Bid Law requirements. Effect: The City may enter into contracts with vendors that do not provide the best possible price when using public funds. Questioned Costs: For the purposes of this finding, there were no questioned costs. Recommendation: The City should strengthen controls to ensure appropriate consideration to competitors is given and adequate documentation is maintained with respect to procurement in accordance with federal Uniform Guidance requirements. Management’s response: The City concurs with the finding described above.

2023-002 REPORTING United States Department of Treasury – 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: Department of Treasury regulations set the criteria for Performance Reports. These reports are due quarterly and / or annually from grantees. Performance Reports must be submitted and reviewed within a certain timeframe based upon the recipient type. Reports should be supported by applicable accounting and performance records. Universe/Population: The universe / population for Performance Reporting is one Annual Project and Expenditure Report. EisnerAmper selected the one Annual Project and Expenditure Report for testing of reporting compliance requirements applicable to the program. Condition: The City did not submit the Annual Project and Expenditure Report covering the period April 1, 2022 – March 31, 2023 by the grantee submission deadline. The Annual Project and Expenditure Report had a submission deadline of April 30, 2023. Cause: The City lacks an established control monitoring timely submission of Performance Reports. Effect: Failure to comply with the reporting requirements may result in sanctions, including: whole or partial suspension of the Federal award or suspension, debarment or limited denial of participation in Department of Treasury programs. Questioned Costs: None determined. Identification of a Repeat Finding: This is not a repeat finding. Recommendation: The City should establish a formalized control to monitor timely submission of Performance Reports. Management’s Response: The City concurs with the observation and will implement procedures in 2024 as recommended.