City of AlhambraLocal Government

Federal agency: U.S. Department of Housing and Urban Development Federal program title: Community Development Block Grant CFDA Number: 14.218 Award Period: July 1, 2019 through June 30, 2020 Type of Finding: ? 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 one of the four (SF-425) reports for the fiscal year ended June 30, 2020 was verified as not being 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. The system for submission changed for the second quarter of fiscal year 2019 2020 to an online submission through IDIS. Cause: A new online submittal process through IDIS began in the second quarter of fiscal year 2019 2020 in which the City will be automatically notified to submit a Cash-On-Hand Quarterly Report which replaced the SF-425 financial report. The first report due under the new submission process was submitted 3 days late due to the City learning of the new process late in the quarter which did not provide enough time for the staff to learn the new process and submit the report timely. Effect: The City was not in compliance with reporting requirements. Repeat Finding: This is a first year finding. Recommendation: We recommend that the City reviews its processes to allow for reporting to take place in timely manner. Views of responsible officials and planned corrective actions: The City agrees with this finding and is aware of the submission requirement. The City has submitted all subsequent IDIS Cash on Hand Quarterly Reports in a timely manner.

Finding Number 2019-001 ? Cash Management Major Program United States Department of Transportation, Passed through the State of California Office of Traffic Safety, Highway Safety Cluster, Program Identification Numbers PT1801/PT19002 (CFDA Numbers 20.600 and 20.616). Criteria Uniform Guidance Title 2, Subtitle A, Chapter II, Part 200, Subpart D, ?200.305 requires that when entities are funded on a reimbursement basis, program costs must be paid for by entity funds before reimbursement is requested from the Federal Government. Condition The City?s reimbursement request for period January 1, 2019 to March 31, 2019 included an expenditure that was incurred during the period but was not paid by the City until October 17, 2019. Questioned Costs None Perspective Information One out of four samples selected for testing was reimbursed before payment was made to the vendor. Cause Staff assigned to coordinate the program was unaware that payment had not occurred prior to request for reimbursement, due to a delay in the payment process. Effect The City was not in compliance with cash management requirements. Recommendation We recommend that City establish procedures to ensure that program costs are paid for by entity funds before reimbursement is requested from the Federal Government, in accordance with Uniform Guidance Title 2, Subtitle A, Chapter II, Part 200, Subpart D, ?200.305.

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