Findings and Questioned Costs for Federal Awards Finding: 2021-001 Major Program(s): All Federal Agency(ies) : All Compliance Requirement: Auditee Responsibilities and Financial Statements Type of Finding: Significant Deficiency Criteria: 2 CFR section 200.508 requires the auditee (the City) to prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with section 200.510. According to section 200.510 the schedule . . . must include the total Federal awards expended including listing Federal programs by Federal Agency . . . for Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity . . .Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number . . . Condition: During the course of our audit, management was not initially able to provide the necessary information for all Federal awards. Context/Cause: We determined that processes are not in place to document with a reliable degree of completeness all expenditures under Federal awards programs. Effect or Potential Effect: The inability to provide a summary of all Federal awards including all necessary information required to draft the Schedule of Expenditures of Federal Awards created delays in the planning and performance of audit procedures required by governmental audit standards. Questioned Cost(s): None Repeat Finding: No Recommendation: We recommend that management ensure a system is in place and operating effectively to produce the Schedule of Expenditures of Federal Awards including all required information within 30 days of the closing of the fiscal year
Response: Most all of the grants received have been on a reimbursement basis thus far. The expenditures are presented before the grant is awarded. In the past, each director has been in charge of requesting documentation of expenditures from the Finance department. We have implemented a process in which the following information will be requested before any documentation is received from Finance. 1. Name of Grant 2. CFDA Number 3. Grant ID Number 4. Award Amount 5. When it will be received 6. List of how it was spent or will be spent
Findings and Questioned Costs for Federal Awards (continued) Finding: 2021-002 Major Program(s): Coronavirus Relief Fund Federal Agency(ies) : Department of the Treasury Compliance Requirement: Allowable Cost and Allowable Activities Type of Finding: Significant Deficiency Criteria: 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal wards that provides reasonable assurance that the non- federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition: As a result of our audit, it was noted that one (1) out of 26 employees timecards tested that were charged to the Coronavirus Relief Fund grant did not have evidence of supervisory review. Context/Cause: We determined that in this instance, the process for monitoring program costs did not operate effectively resulting in one employee having their time charged to the grant without proper review and approval. Effect or Potential Effect: Failure to review and approve employee timecards at the appropriate level could result in unallowable activities and program costs. Questioned Cost(s): None Repeat Finding: No Recommendation: We recommend that management follow their internal procedures and have supervisory review and approval documented.
Response: The employee timecard mentioned is for a Director. The directors are all salaried. Their pay does not change weekly. All scheduled time off is approved by the City Manager and a signed copy of the Time Off Request is retained by the Human Resources department.
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.