EIN: 953213004
UEI: PLPTTCNAL6E1
Data as of August 20, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on November 7, 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 May 7, 2024, which was (835 days ago).
What is a management decision? →Federal Agency: U.S. Department of Transportation Federal Program Name: Highway Planning and Construction Cluster Assistance Listing Number: 20.205 Award Period: July 1, 2021 through June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: The City is required to report federal expenditures based on when costs are incurred. Condition: During our testing, we noted inaccuracy in the schedule of federal expenditure awards. Questioned costs: None Context: During our compliance testing for SEFA completeness, we noted the City did not have any Highway Planning and Construction Cluster expenditures included in the preliminary SEFA. Upon further investigation by the City, $3,492,591 was added to the SEFA. Cause: Due to extraordinary turnover in the Finance Department, the program was missed on the preliminary SEFA. Effect: The City had to revise the schedule of federal expenditures which resulted in increasing the amount reported by $3,492,591. Repeat finding: Yes. Recommendation: The City should evaluate their controls over the Schedule of Expenditures of Federal Awards reporting process to determine whether additional controls can be implemented to provide assurance over the accuracy and completeness of the Schedule of Expenditures of Federal Awards. View of responsible officials and planned corrective actions: There is no disagreement with the audit finding. Management acknowledges that extraordinary turnover occurred in the Finance Department during the closing and subsequent preparation of the fiscal year end dated June 30, 2022. The vacant positions responsible for this work will be filled with trained, experienced accounting professionals and as a result the listed issues will be remedied. Additionally, an audit pre preparation plan is being developed to assure that the year-end audit process will continue to be a smooth process into the future.
Completeness of Schedule of Federal Expenditures Awards Recommendation: The City should evaluate their controls over the Schedule of Expenditures of Federal Awards reporting process to determine whether additional controls can be implemented to provide assurances over the accuracy and completeness of the Schedule of Expenditures of Federal Awards. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The City understands their responsibility for ensuring the completeness and accuracy over the Schedule of Federal Expenditure Awards. The changes made to the schedule were a result of expenses being removed from ARPA funding. The City has made significant efforts to remain in compliance with changing guidance for the funding while remaining keenly cognizant of the purpose behind the funds- public health and safety as well as economic recovery. With the issuance of the Final Rule, the City will continue to audit expenditures associated with the funding and ensure only costs in complete alignment with the final rule are included in the Schedule of Federal Expenditures. Name(s) of the contact person(s) responsible for corrective action: Viridiana Iguaran, George Harris Planned completion date for corrective action plan: 10/30/2023
2021-002
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 12, 2022. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by March 12, 2023, which was (1257 days ago).
What is a management decision? →Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19- Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLT-7562 - 2021 Award Period: March 3, 2021 through June 30, 2021 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The City is required to report federal expenditures based on when costs are incurred. Condition: During our testing, we noted inaccuracy in the schedule of federal expenditure awards. Questioned Costs: None Context: During our compliance testing, a sample of 40 disbursements were selected for testing. Of the 40 disbursements tested, 25 samples were for costs that were incurred prior to March 3, 2021. The City was asked to review all expenditures reported under CFDA 21.027 to identify amounts incurred prior to March 3, 2021, that should be excluded from the schedule of federal awards as of June 30, 2021. Cause: The schedule of federal expenditures was prepared using general ledger posting date rather than the date the costs were incurred. Effect: The City had to revise the schedule of federal expenditures several times which resulted reducing amount reported by $246,631. Repeat Finding: No. Recommendation: The City should evaluate their controls over the Schedule of Expenditures of Federal Awards reporting process to determine whether additional controls can be implemented to provide assurance over the accuracy and completeness of the Schedule of Expenditures of Federal Awards. View of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding. The City understands their responsibility for ensuring the completeness and accuracy over the Schedule of Federal Expenditure Awards. The changes made to the schedule were a result of expenses being removed from ARPA funding. The City has made significant efforts to remain in compliance with changing guidance for the funding while remaining keenly cognizant of the purpose behind the funds- public health and safety as well as economic recovery. With the issuance of the Final Rule, the City will continue to audit expenditures associated with the funding and ensure only costs in complete alignment with the final rule are included in the Schedule of Federal Expenditures.
Recommendation: The City should evaluate their controls over the Schedule of Federal Awards reporting process to determine whether additional controls can be implemented to provide assurances over the accuracy and completeness of the Schedule of Federal Awards. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The City understands their responsibility for ensuring the completeness and accuracy over the Schedule of Federal Expenditure Awards. The changes made to the schedule were a result of expenses being removed from ARPA funding. The City has made significant efforts to remain in compliance with changing guidance for the funding while remaining keenly cognizant of the purpose behind the funds- public health and safety as well as economic recovery. With the issuance of the Final Rule, the City will continue to audit expenditures associated with the funding and ensure only costs in complete alignment with the final rule are included in the Schedule of Federal Expenditures. Name(s) of the contact person(s) responsible for corrective action: Nike Noack, George Harris Planned completion date for corrective action plan: 6/30/2022
Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19- Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLT-7562 - 2021 Award Period: March 3, 2021 through June 30, 2021 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matter Criteria or Specific Requirement: The City may only use funds to cover costs incurred during the period beginning March 3, 2021 per section 602(g)(1) of the Social Security Act as added by section 9901 of the American Rescue Plan Act of 2021. Condition: During our compliance testing, we noted expenditures incurred prior to March 3, 2021. Questioned Costs: $93,212 Context: The City provided several revisions of the schedule of federal expenditures to remove unallowable costs. See finding 2021-003. Based upon the final revised schedule of federal expenditures, a sample of 40 transactions was selected for testing, totaling $283,596. The test found nine samples totaling $93,212 that were incurred prior to March 3, 2021. Cause: The schedule of federal expenditures was prepared using general ledger posting date rather than the date the costs were incurred. Effect: The City?s Schedule of Federal Awards includes costs that are not eligible for reimbursement. Repeat Finding: None. Recommendation: The City should implement procedures that would ensure costs are recorded within the period of performance. View of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding. The City took a proactive approach to addressing community needs as a result of COIVD since declaring a state of emergency in February 2020. Supply chain shortages have made an aggressive approach to purchasing vital in ensuring timely response to changing needs as a result of the global pandemic. The City has continued to hold community safety and economic recovery as the leading tenants in its response. View of Responsible Officials and Planned Corrective Actions (Continued): As such, the City purchased essential supplies in advance of programmatic implementation as supply was available. The City has acted to remain in compliance with the changing requirements as funding was issued nearly a year before the final rule was released. While keeping intention at top of mind, the City acknowledges that some purchases may not align with the restrictions of the final rule and have removed those expenses from the federal funding. These purchases, while essential and in accordance with the intention of the ARPA funds, will be paid for out of the City?s general fund.
Recommendation: The City should implement procedures that would ensure costs are recorded within the period of performance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The City took a proactive approach to addressing community needs as a result of COVID since declaring a state of emergency in February 2020. Supply chain shortages have made an aggressive approach to purchasing vital in ensuring timely response to changing needs as a result of the global pandemic. The City has continued to hold community safety and economic recovery as the leading tenants in its response. As such, the City purchased essential supplies in advance of programmatic implementation as supply was available. The City has acted to remain in compliance with the changing requirements as funding was issued nearly a year before the final rule was released. While keeping intention at top of mind, the City acknowledges that some purchases may not align with the restrictions of the final rule and have removed those expenses from the federal funding. These purchases, while essential and in accordance with the intention of the ARPA funds, will be paid for out of the City?s general fund. Name(s) of the contact person(s) responsible for corrective action: Nike Noack, Lany Hartanto, Lisa Anderson Planned completion date for corrective action plan: 6/30/2022
Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19- Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLT-7562 - 2021 Award Period: March 3, 2021 through June 30, 2021 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Prior to entering in subawards and contracts with award funds, recipients must verify that such contractors and subrecipients are not suspended, debarred, or otherwise excluded pursuant to 31 CFR ? 19.300. Condition: During our compliance testing, we noted that the City did not have support documenting their verification that such vendors are not suspended, debarred, or otherwise excluded pursuant to 31 CFR ? 19.300. Questioned Costs: None. Context: During our compliance testing of suspension and debarment, we selected a sample of five vendors and requested that the City provide supporting documentation that indicates this verification was completed during the procurement process. The City was unable to furnish this information. As a result, we performed this procedure and verified the sampled population was not suspended or debarred. Cause: The City?s procurement department prioritized rapid response to changing community needs. In many cases, the vendor was selected due to supply chain concerns and being the sole provider of highly specialized supplies Effect: The lack of internal controls surrounding the suspension and debarment process of federal funds. Repeat Finding: No. Recommendation: The City should evaluate their controls over federal funding to ensure all suspension and debarment requirements are met. View of Responsible Officials and Planned Corrective Actions: The City has taken additional measures to include additional federal procurement training. As a result of this training, the City procurement department has implemented a purchasing checklist for federal procurements. This checklist includes a step to ensure that potential vendors are not in suspension or debarment.
Recommendation: The City should evaluate their controls over federal funding to ensure all suspension and debarment requirements are met. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The City has taken additional measures to include additional federal procurement training. As a result of this training, the City procurement department has implemented a purchasing checklist for federal procurements. This checklist includes a step to ensure that potential vendors are not in suspension or debarment. Name(s) of the contact person(s) responsible for corrective action: Michael Allen, Laura Norman, Juan Mora. Planned completion date for corrective action plan: 6/30/2022
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Community Development Block Grants/Entitlement Grants Cluster Assistance Listing Number: 14.218 Federal Award Identification Number and Year: B19MC060558 ? 2021 Award Period: July 1, 2020 through June 30, 2021 Type of Finding: ? Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of reporting. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted three of the four (SF-425) reports for the fiscal year ended June 30, 2021 were not submitted timely. Questioned Costs: None. Context: The City is required to submit the Federal Financial Reports (SF-425) within 30 days of the end of the quarter. Cause: The City submitted two of the SF-425 reports delayed as a result of system access issues and the grant representative?s unexpected leave. The City is committed to timely reporting and works with our HUD representative regularly, meeting weekly to update on outstanding issues. The City has also acquired an experienced consulting firm who assists us with filings and has ensured each one has been submitted timely since their hire. Effect: The City was not in compliance with reporting requirements. Repeat Finding: Repeating finding. See prior year finding 2020-003. Recommendation: We recommend that the City review its processes to allow for reporting to take place in timely manner. View of Responsible Officials and Planned Corrective Actions: The City acknowledges the delays that resulted in late filings for the Federal Financial Reports. After a debrief and review of the year end process, the City has reassigned CDBG responsibilities to be overseen by the finance department. Additionally, the City has hired an experienced consulting firm to assist with compliance and programmatic oversite. Since making these improvements, all reporting has been in compliance with SF 425.
Recommendation: We recommend that the City review its processes to allow for reporting to take place in timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The City acknowledges the delays that resulted in late filings for the Federal Financial Reports. After a debrief and review of the year end process, the City has reassigned CDBG responsibilities to be overseen by the finance department. Additionally, the City has hired an experienced consulting firm to assist with compliance and programmatic oversite. Since making these improvements, all reporting has been in compliance with SF 425. Name(s) of the contact person(s) responsible for corrective action: Nike Noack, Lisa Anderson, Lany Hartanto Planned completion date for corrective action plan: 07/13/2021
2020-003
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on June 9, 2021. 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 December 9, 2021, which was (1715 days ago).
What is a management decision? →2020 ? 003 Federal agency: U.S. Department of Housing and Urban Development Federal program title: Community Development Block Grants/Entitlement Grants Cluster CFDA Number: 14.218 Award Period: July 1, 2019 through June 30, 2020 Type of Finding: ? Significant Deficiency in internal Control over Compliance and Other Matter Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of reporting. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted two of the four (SF-425) reports and the Consolidated Annual Performance and Evaluation report (CAPER) for the fiscal year ended June 30, 2020 were not submitted timely. Questioned costs: None Context: The City is required to submit the Federal Financial Reports (SF-425) within 30 days of the end of the quarter and the CAPER is required to be submitted with 90 days of fiscal year end. Cause: The City had significant staffing turnover during fiscal year 2019-2020 which resulted in the late submission of reports. Effect: The City was not in compliance with reporting requirements. Repeat Finding: This is a first year finding. Recommendation: We recommend that the City review its processes to allow for reporting to take place in timely manner. Views of responsible officials and planned corrective actions: The City recognizes the importance of timely and accurate financial reporting. While the City attempted to mitigate the negative impacts of the global pandemic and the turnover of several key staff, it recognizes there is room for improvement. Along with reviewing internal controls and workflow processes, the City will also be working toward obtaining professional outside help for the administration of the CDBG program. All of these improvements will be developed with consideration for GAS, GFOA Best Practices, CSMFO Best Practices, and all other legislative and oversight requirements.
SIGNIFICANT DEFICIENCY 2020-003 HUD - CFDA No. 14.218 Recommendation: We recommend that the City review its processes to allow for reporting to take place in timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The City acknowledges the delays that resulted in late filings for the Federal Financial Reports and the CAPER. After a debrief and review of the year end process, the City finance team has identified several areas of improvement. This includes reassigning the CDBG responsibilities to the Finance Staff. Key positions responsible for the oversight of these filings experienced significant turnover and the consultant hired by the city was found to be unsatisfactory. The gaps created by the turnover allowed for deadlines to pass without proper filing. Along with reassigning the CDBG tasks to our finance team to ensure future compliance, the City has begun the RFP process of seeking additional outside assistance to ensure accurate, timely, and complete filings for the CDBG Program. Name(s) of the contact person(s) responsible for corrective action: Nike Noack, Lisa Anderson, Lany Hartanto Planned completion date for corrective action plan: 5/3012021
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.
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