CITY OF BAKERSFIELD

2021-001 Federal Agency: U.S. Department of Treasury Assistance Listing Number: 21.019 Program Names: Coronavirus Relief Fund Compliance Requirement: Subrecipient Monitoring Award Year: 2020 ? 2021 Pass-through entity: None Questioned Cost: None Criteria In accordance with 2 Code of Federal Regulations (CFR) ? 200.332 (d) the pass-through entity must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Condition The City failed to provide subrecipient monitoring evidence that substantiates the monitoring has been performed. The City admitted that it didn?t conduct subrecipient monitoring procedures for the underlying program . Cause There is a lack of manpower to do the monitoring work; the funding is new and unexpected. The City failed to designate the personnel overseeing the program. Consequently, the review of detailed records of subrecipients? program related allowable costs and activities, and onsite monitoring did not occur during the fiscal year. Effect The subrecipients? costs and activities that may not be allowable could be charged to the program by the City. It was not practical to extend our auditing procedures sufficiently to determine questioned costs, if any, that may have resulted from this finding. Questioned Costs None noted. Repeat Finding No. Recommendation We recommend the City establish internal control policies over the subrecipient monitoring, designate personnel specifically working on the subrecipient monitoring of the major program of the fiscal year. We also recommend the management keep tracking of the subrecipient monitoring work performed by the designated personnel and retain relevant records and documentation. Management?s Views and Corrective Action Plan The City used Coronavirus Relief Funds to provide a training program for individuals who were unemployed or underemployed because of the negative impacts of the pandemic. There program was put together rather quickly in order to get those individuals better employment opportunities as soon as possible. This one-time program was not initially viewed as a program that would require subrecipient monitoring because the training occurred over a set time period of less than 9 months and reported outcomes were submitted to the City showing the demographics of those served. Additionally the program was considered allowable under the funding guidance. As a result of it being a short-term program with reported outcomes and an acceptable use of these relief dollars, not other oversight was considered necessary. In the future, any similar relief programs contracted out to 3rd party service providers will include a subrecipient monitoring segment in the agreement to insure compliance with the Federal grant requirements

CITY OF BAKERSFIELD CORRECTIVE ACTION PLAN FOR YEAR ENDED JUNE 30, 2021 Finding 2021-001 Management?s Response City management agrees that changes to internal controls are necessary for potential subrecipients of federal grant programs. Views of Responsible Officials and Corrective Action The City used Coronavirus Relief Funds to provide a training program for individuals who were unemployed or underemployed because of the negative impacts of the pandemic. There program was put together rather quickly in order to get those individuals better employment opportunities as soon as possible. This one-time program was not initially viewed as a program that would require subrecipient monitoring because the training occurred over a set time period of less than 9 months and reported outcomes were submitted to the City showing the demographics of those served. Additionally, the program was considered allowable under the funding guidance. As a result of it being a short-term program with reported outcomes and an acceptable use of these relief dollars, not other oversight was considered necessary. In the future, any similar relief programs contracted out to 3rd party service providers will include a subrecipient monitoring segment in the agreement to ensure compliance with the Federal grant requirements. Anticipated Completion Date Procedures have been changed and will be in effect for the upcoming fiscal year. Contact Information of Responsible Official Name: Randy McKeegan Title: Finance Director Phone: (661) 326-3030