EIN: 886000202
UEI: JC8PKJTFNM86
Data as of August 26, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 21, 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 June 21, 2024 (796 days ago).
What is a management decision? →Required subaward information was not reported in the FFATA Subaward Reporting System (FSRS). Cause: The City of Sparks did not have internal controls to ensure subaward information was submitted in accordance with the FFATA. Effect: Subaward obligations were not reported in the FSRS and therefore not included on the FFATA’s website for public information disclosure. Questioned Costs: None Context/Sampling: The entire population of one subaward, entered into during the year was subject to FFATA reporting requirements and selected for testing. The quantity and subaward obligation errors were noted as follows: Subawards Obligations Total Tested 1 $231,252 Not Reported 1 $231,252 Not Timely 1 $231,252 Obligation Incorrect 1 $231,252 Missing Key Elements 1 $231,252 Repeat Finding from Prior Year: No Recommendation: Views of Responsible Officials: We recommend the City implement internal controls to ensure subaward information is submitted in accordance with the FFATA. The City of Sparks agrees with this finding.
Show full finding ▾Hide full finding ▴2023‐002: U.S. Department of Housing and Urban Development CDBG – Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grant, Assistance Listing #14.218 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under Assistance Listing 14.218 on the Schedule of Expenditures of Federal Awards. Criteria: The Federal Funding Accountability and Transparency Act (FFATA) requires direct recipients of certain federal awards to report subaward information by the end of the month following the month in which the prime awardee obligates a subgrant award equal to $30,000. Condition: Required subaward information was not reported in the FFATA Subaward Reporting System (FSRS). Cause: The City of Sparks did not have internal controls to ensure subaward information was submitted in accordance with the FFATA. Effect: Subaward obligations were not reported in the FSRS and therefore not included on the FFATA’s website for public information disclosure. Questioned Costs: None Context/Sampling: The entire population of one subaward, entered into during the year was subject to FFATA reporting requirements and selected for testing. The quantity and subaward obligation errors were noted as follows: Subawards Obligations Total Tested 1 $231,252 Not Reported 1 $231,252 Not Timely 1 $231,252 Obligation Incorrect 1 $231,252 Missing Key Elements 1 $231,252 Repeat Finding from Prior Year: No Recommendation: Views of Responsible Officials: We recommend the City implement internal controls to ensure subaward information is submitted in accordance with the FFATA. The City of Sparks agrees with this finding.
2023-002: U.S. Department of Housing and Urban Development CDBG – Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grant, Assistance Listing #14.218 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Finding Summary: The Federal Funding Accountability and Transparency Act (FFATA) requires direct recipients of certain federal awards to report subaward information by the end of the month following the month in which the prime awardee obligates a subgrant award equal to $30,000. Required subaward information was not reported in the FFATA Subaward Reporting System (FSRS). The City of Sparks did not have internal controls to ensure subaward information was submitted in accordance with the FFATA. Responsible Person: Jeff Cronk, CPA, Chief Financial Officer Corrective Action Planned: Financial Services staff are working to improve internal controls to ensure future subaward information will be submitted in accordance with the FFATA. All current subawards subject to the FFATA reporting requirements have been reported in the FFATA Subaward Reporting System (FSRS). Does the City Agree with the finding: Yes If No or Partial, please explain the reason(s) why: N/A Anticipated completion date: 3/31/2024
Current obligation information was not reported in accordance with governing requirements. Cause: The City of Sparks did not have adequate internal controls to ensure Project and Expenditure Reports were prepared in accordance with governing requirements. Effect: Inaccurate information was reported to the federal awarding agency. Questioned Costs: None Context/Sampling: A nonstatistical sample of two out of a population of four Project and Expenditure Reports submitted during the year was selected for testing. The City reported current obligations for the amount the City recognized as a payable, rather than the obligations (i.e., contracts) that were entered into during the reporting period. The impact is as follows: Period Ended December 31, 2022 ShotSpotter: Current Period Obligation -Originally Reported- $290,000; Actual-$850,000 Wastewater Surveillance: Current Period Obligation -Originally Reported-$102,098; Actual- $‐ Period Ended March 31, 2023 ShotSpotter: Current Period Obligation-Originally Reported- $290,000; Actual- $‐ Wastewater Surveillance: Current Period Obligation-Originally Reported- $223,149; Actual- $‐ Prior Year: Yes – repeat finding 2022‐003. Recommendation: We recommend the City enhance internal controls to ensure Project and Expenditure Reports are prepared in accordance with governing requirements. Views of Responsible Officials: The City of Sparks agrees with this finding.
Show full finding ▾Hide full finding ▴2023‐003: U.S. Department of the Treasury COVID‐19: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027 Reporting Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under Assistance Listing 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: The OMB Compliance Supplement requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. The City of Sparks (the City) must submit quarterly Project and Expenditure Reports that contain costs incurred during the covered period. Critical information includes, in part: o Obligations and Expenditures § Current period obligation § Cumulative obligation § Current period expenditure § Cumulative expenditure Condition: Current obligation information was not reported in accordance with governing requirements. Cause: The City of Sparks did not have adequate internal controls to ensure Project and Expenditure Reports were prepared in accordance with governing requirements. Effect: Inaccurate information was reported to the federal awarding agency. Questioned Costs: None Context/Sampling: A nonstatistical sample of two out of a population of four Project and Expenditure Reports submitted during the year was selected for testing. The City reported current obligations for the amount the City recognized as a payable, rather than the obligations (i.e., contracts) that were entered into during the reporting period. The impact is as follows: Period Ended December 31, 2022 ShotSpotter: Current Period Obligation -Originally Reported- $290,000; Actual-$850,000 Wastewater Surveillance: Current Period Obligation -Originally Reported-$102,098; Actual- $‐ Period Ended March 31, 2023 ShotSpotter: Current Period Obligation-Originally Reported- $290,000; Actual- $‐ Wastewater Surveillance: Current Period Obligation-Originally Reported- $223,149; Actual- $‐ Prior Year: Yes – repeat finding 2022‐003. Recommendation: We recommend the City enhance internal controls to ensure Project and Expenditure Reports are prepared in accordance with governing requirements. Views of Responsible Officials: The City of Sparks agrees with this finding.
2023-003 U.S. Department of the Treasury COVID-19: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027 Reporting Significant Deficiency Finding Summary: The City of Sparks did not have adequate internal controls to ensure Project and Expenditure Reports were prepared in accordance with governing requirements. The City reported current obligations for the amount the City recognized as a payable, rather than the obligations (i.e., contracts) that were entered into during the reporting period. Responsible Person: Jeff Cronk, CPA, Chief Financial Officer Corrective Action Planned: Financial Services staff will correct the Project and Expenditure Report current obligations for the period ended December 31, 2023 to ensure only the obligations that were entered into during the reporting period are reported. Does the City Agree with the finding: Yes If No or Partial, please explain the reason(s) why: Anticipated completion date: 1/31/2024
2022-003
FAC accepted this audit on December 21, 2022 — management decision was due June 21, 2023.
Expenditure information was reported inaccurately. Cause: The City of Sparks did not have adequate internal controls to ensure Project and Expenditure Reports were prepared in accordance with governing requirements. Effect: Inaccurate information was reported to the federal awarding agency. Questioned Costs: None Context/Sampling: The entire population of two Project and Expenditure Reports submitted during the year was selected for testing. The cumulative impact is as follows: Period Ended December 31, 2021 Originally Reported Actual Obligations and Expenditures: Cumulative expenditures $10,240,156 $240,156 Period Ended March 31, 2022 Originally Reported Actual Obligations and Expenditures: Cumulative expenditures $10,440,302 $5,003,131 Repeat Finding from Prior Year: No Recommendation: We recommend the City enhance internal controls to ensure Project and Expenditure Reports are prepared in accordance with governing requirements. Views of Responsible Officials: The City of Sparks partially agrees with this finding. Financial Services Staff accurately reported current period expenditures on the Project and Expenditure Report for the periods ended December 31, 2021 and March 31, 2022. The City elected the $10 million allowance to replace lost public sector revenue as the U.S. Department of Treasury?s guidance stated recipients must choose one of two options and cannot switch between these approaches after an election is made. In consideration that the City had only received the first tranche of $8.1 million during the reporting period, the full $10 million was included in the cumulative expenditures total for revenue replacement. The City believed this was the correct approach to reporting with the guidance available at the time. Upon receiving subsequent Federal guidance that clarified the reporting requirements, cumulative expenditures were updated and properly reported on the Project and Expenditure Report for the period ended June 30, 2022 that was submitted July 25, 2022.
Show full finding ▾Hide full finding ▴Section III ? Findings and Questioned Costs for Federal Awards: 2022-003:U.S. Department of the Treasury COVID-19: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under Assistance Listing 21.027 on the Schedule of Expenditures of Federal Awards. Criteria: The OMB Compliance Supplement requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. The City of Sparks (the City) must submit quarterly Project and Expenditure Reports that contain costs incurred during the covered period. Critical information includes: o Obligations and Expenditures o Current period obligation o Cumulative obligation o Current period expenditure o Cumulative expenditure o Subawards o Detailed information on any loans issued; contracts and grants awarded; transfers made to other government entities; and direct payments made by the recipient that are greater than $50,000. For amounts less than $50,000, the recipient must report in the aggregate for these same categories of loans issued; contracts and grants awarded; transfers made to other government entities and direct payments made by the recipient. Condition: Expenditure information was reported inaccurately. Cause: The City of Sparks did not have adequate internal controls to ensure Project and Expenditure Reports were prepared in accordance with governing requirements. Effect: Inaccurate information was reported to the federal awarding agency. Questioned Costs: None Context/Sampling: The entire population of two Project and Expenditure Reports submitted during the year was selected for testing. The cumulative impact is as follows: Period Ended December 31, 2021 Originally Reported Actual Obligations and Expenditures: Cumulative expenditures $10,240,156 $240,156 Period Ended March 31, 2022 Originally Reported Actual Obligations and Expenditures: Cumulative expenditures $10,440,302 $5,003,131 Repeat Finding from Prior Year: No Recommendation: We recommend the City enhance internal controls to ensure Project and Expenditure Reports are prepared in accordance with governing requirements. Views of Responsible Officials: The City of Sparks partially agrees with this finding. Financial Services Staff accurately reported current period expenditures on the Project and Expenditure Report for the periods ended December 31, 2021 and March 31, 2022. The City elected the $10 million allowance to replace lost public sector revenue as the U.S. Department of Treasury?s guidance stated recipients must choose one of two options and cannot switch between these approaches after an election is made. In consideration that the City had only received the first tranche of $8.1 million during the reporting period, the full $10 million was included in the cumulative expenditures total for revenue replacement. The City believed this was the correct approach to reporting with the guidance available at the time. Upon receiving subsequent Federal guidance that clarified the reporting requirements, cumulative expenditures were updated and properly reported on the Project and Expenditure Report for the period ended June 30, 2022 that was submitted July 25, 2022.
2022-003 U.S. Department of the Treasury COVID-19: Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #21.027 Finding Summary: The City of Sparks did not have adequate internal controls to ensure Project and Expenditure Reports were prepared in accordance with governing requirements. Responsible Person: Jeff Cronk, CPA, Chief Financial Officer Corrective Action Planned: Financial Services staff corrected the Project and Expenditure Report cumulative expenditures for the period ended June 30, 2022. Does the City Agree with the finding: x Partially If No or Partial, please explain the reason(s) why: Financial Services Staff accurately reported current period expenditures on the Project and Expenditure Report for the periods ended December 31, 2021 and March 31, 2022. The City elected the $10 million allowance to replace lost public sector revenue as the U.S. Department of Treasury?s guidance stated recipients must choose one of two options and cannot switch between these approaches after an election is made. In consideration that the City had only received the first tranche of $8.1 million during the reporting period, the full $10 million was included in the cumulative expenditures total for revenue replacement. The City believed this was the correct approach to reporting with the guidance available at the time. Upon receiving subsequent Federal guidance that clarified the reporting requirements, cumulative expenditures were updated and properly reported on the Project and Expenditure Report for the period ended June 30, 2022 that was submitted July 25, 2022. Anticipated completion date: 7/25/2022
FAC accepted this audit on December 28, 2021 — management decision was due June 28, 2022.
A subaward did not include the assistance listing number, program name, unique entity identifier, and determination that both an indirect rate and research and development were not applicable, which are required to be included in a subaward. Cause: The City of Sparks did not have adequate internal controls to ensure subawards contained all required information. Effect: The subrecipient may not be aware of various requirements and noncompliance at the subrecipient level may occur. Questioned Costs: None. Context/Sampling: A nonstatistical sample of two subawards out of a population of five was selected for testing. One of the subawards did not contain all the required information. Repeat Finding from Prior Year: No. Recommendation: We recommend the City of Sparks enhance internal controls to ensure subawards contain all required information. Views of Responsible Officials: The City of Sparks agrees with this finding.
Show full finding ▾Hide full finding ▴2021?004: U.S. Department of the Treasury COVID?19 Coronavirus Relief Fund, Assistance Listing #21.019 Subrecipient Monitoring Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under Assistance Listing 21.019 on the Schedule of Expenditures of Federal Awards. Criteria: All pass?through entities must ensure that every subaward is clearly identified to the subrecipient as a subaward and includes certain information required by 2 CFR ?200.332 at the time of the subaward. Condition: A subaward did not include the assistance listing number, program name, unique entity identifier, and determination that both an indirect rate and research and development were not applicable, which are required to be included in a subaward. Cause: The City of Sparks did not have adequate internal controls to ensure subawards contained all required information. Effect: The subrecipient may not be aware of various requirements and noncompliance at the subrecipient level may occur. Questioned Costs: None. Context/Sampling: A nonstatistical sample of two subawards out of a population of five was selected for testing. One of the subawards did not contain all the required information. Repeat Finding from Prior Year: No. Recommendation: We recommend the City of Sparks enhance internal controls to ensure subawards contain all required information. Views of Responsible Officials: The City of Sparks agrees with this finding.
2021-004 U.S. Department of the Treasury COVID-19 Coronavirus Relief Fund, Assistance Listing #21.019 Finding Summary: The City of Sparks did not have adequate internal controls to ensure subawards contained all required information. Responsible Person: Jeff Cronk, CPA, Chief Financial Officer Corrective Action Planned: Financial Services staff are working to improve internal controls to ensure subawards contain all required information. Does the City Agree with the finding: Yes If No or Partial, please explain the reason(s) why: N/A Anticipated completion date: 3/31/2022
FAC accepted this audit on December 21, 2020 — management decision was due June 21, 2021.
Amounts reported on the C04PR03 ? Activity Summary Report were not supported by the underlying information and therefore, were not reported in accordance with program requirements. Cause: The City of Sparks did not have adequate internal controls to ensure the C04PR03 demographic information was maintained to support the amounts reported. Effect: Inaccurate information may have been reported to the federal awarding agency. Questioned Costs: None. Context/Sampling: The annual report submitted during fiscal year 2020 based on program year 2018 was selected for testing. The number of individuals assisted by the program was not supported by the underlying information for 5 out of the 7 activities reported. Repeat Finding from Prior Year: Yes ? prior year finding 2019-001. Recommendation: We recommend the City of Sparks enhance internal controls to ensure the C04PR03 demographic information is maintained to support the amounts reported. Views of Responsible Officials: The City of Sparks agrees with this finding.
Show full finding ▾Hide full finding ▴2020-002:U.S. Department of Housing and Urban Development Community Development Block Grant ? Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grants, CFDA 14.218 Reporting Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under CFDA 14.218 on the Schedule of Expenditures of Federal Awards. Criteria: The OMB Compliance Supplement requires that reports submitted to the Federal awarding agency include all activity of the reporting period, are supported by underlying accounting information and are presented in accordance with program requirements. Condition: Amounts reported on the C04PR03 ? Activity Summary Report were not supported by the underlying information and therefore, were not reported in accordance with program requirements. Cause: The City of Sparks did not have adequate internal controls to ensure the C04PR03 demographic information was maintained to support the amounts reported. Effect: Inaccurate information may have been reported to the federal awarding agency. Questioned Costs: None. Context/Sampling: The annual report submitted during fiscal year 2020 based on program year 2018 was selected for testing. The number of individuals assisted by the program was not supported by the underlying information for 5 out of the 7 activities reported. Repeat Finding from Prior Year: Yes ? prior year finding 2019-001. Recommendation: We recommend the City of Sparks enhance internal controls to ensure the C04PR03 demographic information is maintained to support the amounts reported. Views of Responsible Officials: The City of Sparks agrees with this finding.
2020-002 U.S. Department of Housing and Urban Development Community Development Block Grant ? Entitlement Grants Cluster Community Development Block Grants/Entitlement Grants, CFDA 14.218 Finding Summary: The City did not have adequate internal controls to ensure the C04PR03 demographic information was maintained to support the amounts reported. Responsible Person: Jeff Cronk, CPA, Chief Financial Officer Corrective Action Planned: Management is working with the report preparers to improve internal controls and assure the reports tie to the underlying information. Does the City Agree with the finding: Yes Anticipated completion date: 12/31/2020
2019-001
Certain certified payrolls were not submitted weekly as required and in certain instances, there was no documentation of timely follow up with contractors to support efforts to ensure future reports would be submitted weekly as required. Cause: The City of Sparks did not have adequate internal controls to ensure timely follow up with the contractor was performed when the required certified payrolls were not received weekly. Effect: Noncompliance with the Wage Rate Requirements by a contractor or subcontractor could occur and not be detected or followed up on by the City of Sparks in a timely manner. Questioned Costs: None. Context/Sampling: Two contracts were subject to the wage rate requirements, which included the two prime contractors and six subcontractors. A nonstatistical sample of seven out of 29 certified payroll submissions was selected for testing. Although all certified payrolls were received, three payrolls were not submitted timely as required. Documentation was not available to evidence follow up that were not submitted timely. Repeat Finding from Prior Year: Yes ? prior year finding 2019-002. Recommendation: We recommend that the City of Sparks enhance internal controls to ensure timely follow up with the contractor is performed when the required certified payrolls are not received weekly as required. Views of Responsible Officials: The City of Sparks agrees with this finding.
Show full finding ▾Hide full finding ▴2020-003:U.S. Department of Housing and Urban Development Community Development Block Grant ? Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grants, CFDA 14.218 Special Tests and Provisions ? Wage Rate Requirements Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under CFDA 14.218 on the Schedule of Expenditures of Federal Awards. Criteria: The OMB Compliance Supplement states that non-Federal 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 Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit to the non-Federal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition: Certain certified payrolls were not submitted weekly as required and in certain instances, there was no documentation of timely follow up with contractors to support efforts to ensure future reports would be submitted weekly as required. Cause: The City of Sparks did not have adequate internal controls to ensure timely follow up with the contractor was performed when the required certified payrolls were not received weekly. Effect: Noncompliance with the Wage Rate Requirements by a contractor or subcontractor could occur and not be detected or followed up on by the City of Sparks in a timely manner. Questioned Costs: None. Context/Sampling: Two contracts were subject to the wage rate requirements, which included the two prime contractors and six subcontractors. A nonstatistical sample of seven out of 29 certified payroll submissions was selected for testing. Although all certified payrolls were received, three payrolls were not submitted timely as required. Documentation was not available to evidence follow up that were not submitted timely. Repeat Finding from Prior Year: Yes ? prior year finding 2019-002. Recommendation: We recommend that the City of Sparks enhance internal controls to ensure timely follow up with the contractor is performed when the required certified payrolls are not received weekly as required. Views of Responsible Officials: The City of Sparks agrees with this finding.
2020-003 U.S. Department of Housing and Urban Development Community Development Block Grant ? Entitlement Grants Cluster Community Development Block Grants/Entitlement Grants, CFDA 14.218 Finding Summary: The City did not follow up in a timely manner to obtain certain certified payroll reports weekly as required by the Department of Labor regulations (29 CFR part 5) to assure Wage Rate requirements were met. Responsible Person: Jeff Cronk, CPA, Chief Financial Officer Corrective Action Planned: Management is researching the feasibility of software that will be used to assure federal contracts meet Wage Rate regulations. Management will also work with City personnel to improve internal controls to ensure the required certified payrolls are received weekly as required. Does the City Agree with the finding: Yes Anticipated completion date: 06/30/2021
2019-002
The City of Sparks had expenditures towards projects that were not included in the analysis of whether an environmental review was required or exempt. Cause: The City of Sparks did not have adequate internal controls to ensure modifications to existing projects were included within the environmental review assessment. Effect: Project costs may be ineligible for reimbursement. Questioned Costs: Undeterminable. Context/Sampling: No sampling was used; we examined the two projects that were required to be included in the environmental review assessment. The City had completed an environmental review assessment, which was submitted and approved. However, the scope of the street improvement project was expanded and the additional streets were not included within the previously completed environmental review assessment. Repeat Finding from Prior Year: No. Recommendation: We recommend the City of Sparks enhance internal controls to ensure modifications to existing projects are included within the environmental review assessment. Views of Responsible Officials: The City of Sparks agrees with this finding.
Show full finding ▾Hide full finding ▴2020-004:U.S. Department of Housing and Urban Development Community Development Block Grant ? Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grants, CFDA 14.218 Special Tests and Provisions ? Environmental Reviews Material Weakness in Internal Control over Compliance Grant Award Number: Affects all grant awards included under CFDA 14.218 on the Schedule of Expenditures of Federal Awards. Criteria: Projects must have an environmental review unless they meet the criteria specified in the regulations that would exempt or exclude them from a Request for Release of Funds (RROF) and environmental certification requirements (24 CFR sections 58.1, 58.22, 58.34, 58.35, and 570.604). Condition: The City of Sparks had expenditures towards projects that were not included in the analysis of whether an environmental review was required or exempt. Cause: The City of Sparks did not have adequate internal controls to ensure modifications to existing projects were included within the environmental review assessment. Effect: Project costs may be ineligible for reimbursement. Questioned Costs: Undeterminable. Context/Sampling: No sampling was used; we examined the two projects that were required to be included in the environmental review assessment. The City had completed an environmental review assessment, which was submitted and approved. However, the scope of the street improvement project was expanded and the additional streets were not included within the previously completed environmental review assessment. Repeat Finding from Prior Year: No. Recommendation: We recommend the City of Sparks enhance internal controls to ensure modifications to existing projects are included within the environmental review assessment. Views of Responsible Officials: The City of Sparks agrees with this finding.
2020-004 U.S. Department of Housing and Urban Development Community Development Block Grant ? Entitlement Grants Cluster Community Development Block Grants/Entitlement Grants, CFDA 14.218 Finding Summary: The City had expenditures towards projects that were not included in the analysis of whether an environmental review was required or exempt. Responsible Person: Jeff Cronk, CPA, Chief Financial Officer Corrective Action Planned: Management is working with City personnel to assure the required documentation is prepared, and internal controls are in place to ensure we have the proper amount of environmental reviews even if the project is expanded beyond the initial scope of work. Does the City Agree with the finding: Yes Anticipated completion date: 03/31/2021
FAC accepted this audit on November 19, 2019 — management decision was due May 19, 2020.
2019-001: U.S. Department of Housing and Urban Development Community Development Block Grant-Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grants, CFDA 14.218 Reporting Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under CFDA 14.218 on the Schedule of Expenditures of Federal Awards. Criteria: The OMB Compliance Supplement requires that reports submitted to the Federal awarding agency include all activity of the reporting period, are supported by underlying accounting information and are presented in accordance with program requirements. Condition and Context: Amounts reported on the C04PR03 - Activity Summary Report were not supported by the underlying accounting information and therefore, were not reported in accordance with program requirements. Questioned Costs: None. Effect: Inaccurate information was reported to the federal awarding agency. Cause: The annual report submitted during fiscal year 2019 based on program year 2017 was selected for testing. The number of individuals assisted by the program was not supported by the underlying information for 4 out of the 19 activities reported. Repeat Finding from Prior Year: No. Recommendation: We recommend the City of Sparks enhance internal controls to ensure the C04PR03 - Activity Summary Report is reported accurately. Views of Responsible Officials: The City of Sparks agrees with this finding.
Show full finding ▾Hide full finding ▴2019-001: U.S. Department of Housing and Urban Development Community Development Block Grant-Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grants, CFDA 14.218 Reporting Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under CFDA 14.218 on the Schedule of Expenditures of Federal Awards. Criteria: The OMB Compliance Supplement requires that reports submitted to the Federal awarding agency include all activity of the reporting period, are supported by underlying accounting information and are presented in accordance with program requirements. Condition and Context: Amounts reported on the C04PR03 - Activity Summary Report were not supported by the underlying accounting information and therefore, were not reported in accordance with program requirements. Questioned Costs: None. Effect: Inaccurate information was reported to the federal awarding agency. Cause: The annual report submitted during fiscal year 2019 based on program year 2017 was selected for testing. The number of individuals assisted by the program was not supported by the underlying information for 4 out of the 19 activities reported. Repeat Finding from Prior Year: No. Recommendation: We recommend the City of Sparks enhance internal controls to ensure the C04PR03 - Activity Summary Report is reported accurately. Views of Responsible Officials: The City of Sparks agrees with this finding.
2019-001 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT COMMUNITY BLOCK GRANT - ENTITLEMENT GRANTS CLUSTER COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS, CFDA 14.218 FINDING SUMMARY: THE CITY DID NOT HAVE UNDERLYING ACCOUNTING INFORMATION TO SUPPORT THE NUMBER OF INDIVIDUALS REPORTED AS ASSISTED BY THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM. RESPONSIBLE PERSON: JEFF CRONK, CPA, CHIEF FINANCIAL OFFICER CORRECTIVE ACTION PLANNED: MANAGEMENT IS WORKING WITH THE REPORT PREPARERS TO ASSURE THE REPORTS TIE TO THE UNDERLYING ACCOUNTING INFORMATION. DOES THE CITY AGREE WITH THE FINDING: YES IF NO OR PARTIAL, PLEASE EXPLAIN THE REASONS(S) WHY: N/A ANTICIPATED COMPLETION DATE: 12/31/2019
Certain certified payrolls were not submitted weekly as required and in certain instances, there was no documentation of timely follow up with contractors to support efforts to ensure future reports would be submitted weekly as required. Moreover, certain certified payrolls were not maintained and had to be requested from the contractor. Cause: The City of Sparks did not have adequate internal controls to ensure that timely follow up with the contractor was performed when the required certified payrolls were not received weekly and that all certified payrolls were retained. Effect: Noncompliance with the Wage Rate Requirements by a contractor or subcontractor could occur and not be detected or followed up on by the City of Sparks in a timely manner. Questioned Costs: None. Context/Sampling: One contract was subject to the wage rate requirements, which included the prime contractor and five subcontractors. A nonstatistical sample of seven out of 46 certified payroll submissions was selected for testing. Although all certified payrolls were received, five payrolls were not submitted timely as required. Documentation was not available to evidence follow up that were not submitted timely. In addition, two payrolls were not maintained and had to be re-requested from the contractor, thus we were unable to verify the timeliness of the original submission. Repeat Finding from Prior Year: No. Recommendation: We recommend that the City of Sparks enhance internal controls to ensure that timely follow up with the contractor is performed when the required certified payrolls are not received weekly as required and that all certified payrolls are retained. Views of Responsible Officials: The City of Sparks agrees with this finding.
Show full finding ▾Hide full finding ▴2019-002: U.S. Department of Housing and Urban Development Community Development Block Grant-Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grants, CFDA 14.218 Special Tests and Provisions - Wage Rate Requirements Material Weakness in Internal Control over Compliance Grant Award Number: Potentially affects all grant awards included under CFDA 14.218 on the Schedule of Expenditures of Federal Awards. Criteria: The OMB Compliance Supplement states that non?Federal 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 Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit to the non-Federal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition: Certain certified payrolls were not submitted weekly as required and in certain instances, there was no documentation of timely follow up with contractors to support efforts to ensure future reports would be submitted weekly as required. Moreover, certain certified payrolls were not maintained and had to be requested from the contractor. Cause: The City of Sparks did not have adequate internal controls to ensure that timely follow up with the contractor was performed when the required certified payrolls were not received weekly and that all certified payrolls were retained. Effect: Noncompliance with the Wage Rate Requirements by a contractor or subcontractor could occur and not be detected or followed up on by the City of Sparks in a timely manner. Questioned Costs: None. Context/Sampling: One contract was subject to the wage rate requirements, which included the prime contractor and five subcontractors. A nonstatistical sample of seven out of 46 certified payroll submissions was selected for testing. Although all certified payrolls were received, five payrolls were not submitted timely as required. Documentation was not available to evidence follow up that were not submitted timely. In addition, two payrolls were not maintained and had to be re-requested from the contractor, thus we were unable to verify the timeliness of the original submission. Repeat Finding from Prior Year: No. Recommendation: We recommend that the City of Sparks enhance internal controls to ensure that timely follow up with the contractor is performed when the required certified payrolls are not received weekly as required and that all certified payrolls are retained. Views of Responsible Officials: The City of Sparks agrees with this finding.
2019-002 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT COMMUNITY BLOCK GRANT - ENTITLEMENT GRANTS CLUSTER COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS, CFDA 14.218 FINDING SUMMARY: THE CITY DID NOT OBTAIN CERTAIN CERTIFIED PAYROLL REPORTS WEEKLY AS REQUIRED BY THE DEPARTMENT OF LABOR REGULATIONS (29 CFR PART 5) TO ASSURE WAGE RATE REQUIREMENTS WERE MET. RESPONSIBLE PERSON: JEFF CRONK, CPA, CHIEF FINANCIAL OFFICER CORRECTIVE ACTION PLANNED: MANAGEMENT IS RESEARCHING THE FEASIBILITY OF SOFTWARE THAT WILL BE USED TO ASSURE FEDERAL CONTRACTS MEET WAGE RATE REGULATIONS. DOES THE CITY AGREE WITH THE FINDING: YES IF NO OR PARTIAL, PLEASE EXPLAIN THE REASONS(S) WHY: N/A ANTICIPATED COMPLETION DATE: 12/31/2020
The City of Sparks did not document in writing, its determination that each activity or project was exempt under the conditions of 24 CFR 58.34(a)(12). Cause: The City of Sparks did not have adequate internal controls to ensure that determinations of exempt activities were documented in writing. Effect: Activities or projects may be determined exempt or non-exempt incorrectly. Questioned Costs: None. Context/Sampling: No sampling was used; the written documentation of exempt status was not maintained for all activities or projects. Repeat Finding from Prior Year: No. Recommendation: We recommend that the City of Sparks enhance internal controls to ensure that determinations of exempt activities are documented in writing. Views of Responsible Officials: The City of Sparks agrees with this finding.
Show full finding ▾Hide full finding ▴2019-003: U.S. Department of Housing and Urban Development Community Development Block Grant-Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grants, CFDA 14.218 Special Tests and Provisions-Environmental Reviews Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under CFDA 14.218 on the Schedule of Expenditures of Federal Awards. Criteria: Projects must have an environmental review unless they meet the criteria specified in the regulations that would exempt or exclude them from a Request for Release of Funds (RROF) and environmental certification requirements. 24 CFR 58.34(b) states that a recipient does not have to submit an RROF and certification, and no further approval from HUD or the State will be needed by the recipient for the drawdown of funds to carry out exempt activities and projects. However, the responsible entity must document in writing its determination that each activity or project is exempt and meets the conditions specified for such exemption under 24 CFR 58.35(a). Condition: The City of Sparks did not document in writing, its determination that each activity or project was exempt under the conditions of 24 CFR 58.34(a)(12). Cause: The City of Sparks did not have adequate internal controls to ensure that determinations of exempt activities were documented in writing. Effect: Activities or projects may be determined exempt or non-exempt incorrectly. Questioned Costs: None. Context/Sampling: No sampling was used; the written documentation of exempt status was not maintained for all activities or projects. Repeat Finding from Prior Year: No. Recommendation: We recommend that the City of Sparks enhance internal controls to ensure that determinations of exempt activities are documented in writing. Views of Responsible Officials: The City of Sparks agrees with this finding.
2019-003 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT COMMUNITY BLOCK GRANT - ENTITLEMENT GRANTS CLUSTER COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS, CFDA 14.218 FINDING SUMMARY: THE CITY DID NOT COMPLETE THE REQUIRED DOCUMENTATION TO SUPPORT OUR EXEMPT STATUS RELATED TO ENVIRONMENTAL REVIEW REQUIREMENTS FOR GRANT ACTIVITIES. RESPONSIBLE PERSON: JEFF CRONK, CPA, CHIEF FINANCIAL OFFICER CORRECTIVE ACTION PLANNED: MANAGEMENT IS WORKING WITH THE GRANT PERSONNEL TO ASSURE THE REQUIRED DOCUMENTATION IS PREPARED. DOES THE CITY AGREE WITH THE FINDING: YES IF NO OR PARTIAL, PLEASE EXPLAIN THE REASONS(S) WHY: N/A ANTICIPATED COMPLETION DATE: 12/31/2020
FAC accepted this audit on December 13, 2018 — management decision was due June 13, 2019.
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FAC accepted this audit on December 11, 2017 — management decision was due June 11, 2018.
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2016-001
FAC accepted this audit on December 27, 2016 — management decision was due June 27, 2017.
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2015-001
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