EIN: 956000746
UEI: FP57WF3LE323
Data as of August 21, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on June 30, 2026. 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 30, 2026 (131 days from today).
What is a management decision? →Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Prior to entering into subawards and covered procurement contracts funded by federal awards, recipients must verify that contractors, subcontractors, and subrecipients are not suspended, debarred, or otherwise excluded from participating in federally funded projects. Per 2 CFR § 180.300, this verification must be completed prior to transaction execution and documented using one of three approved methods: reviewing the System for Award Management (SAM.gov) exclusions database, obtaining a signed compliance certification, or adding a formal suspension and debarment clause directly into the legally executed agreement. Condition: During the audit over suspension and debarment, we were not able to obtain documentation evidencing whether vendors were checked against the SAM database or whether suspension and debarment certifications were obtained prior to awarding the contracts. Cause: While formal policies and procedures have been created by the City, they were not being consistently monitored or enforced during Fiscal Year 2025 to ensure required suspension and debarment verifications and supporting documentation were obtained and retained prior to contract awards. Effect or Potential Effect: Without verifying whether vendors are suspended or debarred from working on federally funded projects prior to the contract being awarded, the City could be contracting with vendors that are prohibited from working on federally funded projects and incurring potentially disallowed costs. Questioned Costs: None noted. Context: See condition above for the context of the procurement finding. No support was provided for 2 out of 2 Federal Transit Cluster vendors selected for testing to show suspension and debarment check was performed prior to awarding the contracts. Identification as a Repeat Finding, If Applicable: 2024-003. Recommendation: We recommend the City strengthen its monitoring procedures over suspension and debarment compliance to ensure vendors are verified against the SAM database or that required suspension and debarment certifications are obtained prior to contract award. In addition, the City should ensure supporting documentation evidencing compliance is consistently maintained and retained in the procurement files in accordance with federal requirements and City policies. Views of Responsible Officials: The City implemented a new review, tracking and documentation process for all procurements during FY 2023-24. Staff were instructed to perform checks of all vendors -- regardless of the nature of the funding for the project – against SAM.GOV to check for disbarment. A PDF of the results for each vendor is saved in a project folder attached to each procurement. These files are stored on an internal network drive. During FY 2024-25, due to turnover in purchasing staff in Finance and transition of duties, there was a lapse in checking all procurements against SAM.GOV. This process has been reviewed with staff involved in procurement and regular checks are being conducted. Management feels this finding will be cleared in FY 2025-26.
The City implemented a new review, tracking and documentation process for all procurements during FY 2023-24. Staff have been performing checks of all vendors, regardless of the nature of the funding, for the project against SAM.GOV to check for disbarment. A PDF of the results for each vendor is saved in a project folder attached to each procurement. These files are stored on an internal network drive. Management feels the process in place addresses this finding. Responsible Person: Alexis Lucero Expected Implementation Date: 07/01/2026
2024-003
Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Federal Financial Report (“FFR”) – The FFR must be submitted semi-annually throughout the period of performance, as well as in periods where no grant award activity occurs. The due date of each quarterly report is noted below: Programmatic Performance Report (“PPR”) – The PPR is required to be submitted semi-annually throughout the period of performance, as well as in periods where no grant award activity occurs. The due date of each quarterly report is noted below: Condition: We noted that the bi-annual FFR and PPR for SAFER were not submitted within the deadline, as shown below: Cause: Monitoring controls are inadequate to ensure the timely submission of the required reports. In addition, the SAFER grant was still relatively new to the City and staff were still becoming familiar with the related reporting requirements and deadlines during Fiscal Year 2024-25. Effect or Potential Effect: The City was not in compliance with the program’s reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: 2024-004. Recommendation: We recommend the City develop policy and procedures to ensure that the reports are prepared accurately and submitted timely. In addition, we recommend the City strengthen its monitoring controls and reporting procedures to ensure all required federal reports are prepared, reviewed, and submitted timely in accordance with grant requirements and reporting deadlines. The City should establish formal tracking procedures, including reporting calendars and supervisory review processes, to monitor due dates and submission status for each grant program. Views of Responsible Officials: Management endeavors to submit all required reports by required deadlines. The new Federal grant for the City’s Fire Department staffing (SAFER) are managed by the Fire Department. Prior staff charged with monitoring these grants failed to file the FFRs and PPRs in a timely manner – this was due to a number of factors, even though Finance staff endeavored to work with them to ensure reports were filed. This Fire Department staff person is no longer with the City and Finance looks to work more closely with the staff in the Fire Department charged with grant monitoring. Management will consider establishing formal tracking processes for all FFRs and PPRs, with deadline monitoring and supervisor review/sign-off.
The City will update its grant policy to strengthen internal controls for grant monitoring. The policy will establish the rules and procedures for how departments process, utilize, and monitory grant funding. With the updated policy, the City can ensure accountability, transparency and compliance. Quarterly meeting with departments’ grants administrator will be set up to ensure grant drawdowns and other reporting are done timely. This will also require supervisor’s review and sign offs. Also, the grant accountant will familiarize themselves with the grant documents and deadlines even if the deadlines do not pertain to the finance department. Responsible Person: Sarby Munoz Expected Implementation Date: 07/01/2026
2024-004
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 15, 2025. 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 15, 2026, which was (159 days ago).
What is a management decision? →Finding 2024-003 Internal Control Over Suspension and Debarment Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2021-075-00; CA-2023-202-00 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Prior to entering into subawards and contracts with award funds, recipients must ensure that contractors and subcontractors are not suspended from participating in federally funded projects. Verification is typically done by reviewing the System for Award Management (“SAM”) database and including certifications in contacts. Condition: During the audit, we noticed that the City did not perform suspension and debarment checks prior to awarding contracts. No evidence was available to show that vendors were verified against the System for Award Management (SAM) database or that suspension and debarment certifications were obtained. Cause: While the City adopted a suspension and debarment policy on April 2024, the policy was not in effect for a portion of the fiscal year and was not applied retroactively resulting in vendor verifications not being performed. Effect or Potential Effect: Without verifying whether vendors are suspended or debarred from working on federally-funded projects prior to the contract being awarded, the City could be contracting with vendors that are prohibited from working on federally funded projects and incurring potentially disallowed costs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: 2023-005. Recommendation: We recommend the City ensure full implementation of its suspension and debarment policy adopted on April 2024, including applying verification procedures to all applicable federally funded contracts moving forward. Views of Responsible Officials: The City implemented a new review, tracking and documentation process for all procurements during FY 2023-24. Staff have been performing checks of all vendors -- regardless of the nature of the funding for the project – against SAM.GOV to check for disbarment. A PDF of the results for each vendor is saved in a project folder attached to each procurement. These files are stored on an internal network drive. Management feels the process in place addresses this finding.
The City implemented a new review, tracking and documentation process for all procurements during FY 202-24. Staff have been performing checks of all vendors -- regardless of the nature of the funding for the project – against SAM.GOV to check for disbarment. A PDF of the results for each vendor is saved in a project folder attached to each procurement. These files are stored on an internal network drive. Management feels the process in place addresses this finding.
2023-005
Finding 2024-004 Reporting – Internal Control and Compliance Over Reporting Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grant/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-23-MC-06-0555; B-22-MC-06-0555; B-20-MW-06-0555; B-19-MC-06-0555; B-18-MC-06-0555; B-17-MC-06-0555; B-16-MC-06-0555 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): PR29, CDBG and CDBG-CV Cash on Hand Quarterly Reports – PR29 in the Integrated Disbursement and Information System (IDIS) reports the financial status of the grants and cooperative agreement funds and cash transactions using those funds. These reports are required to be submitted to the Department of Housing and Urban Development (“HUD”) on a quarterly basis, 30 days after the reporting period end date. The due date of each quarterly report is noted below: Reporting Period (End Date) Due Date of Reports September 30, 2023 October 30, 2023 December 31, 2023 January 30, 2024 March 31, 2024 April 30, 2024 June 30, 2024 July 30, 2024 Condition: During the audit, we noticed that three out of four quarters of PR29 for CDBG and CDBG-CV were not filed within the deadline, as shown below: Reporting Period Submission PR29 Report (End Date) Due Date of Reports Date CDBG September 30, 2023 October 30, 2023 November 6, 2023 CDBG March 31, 2024 April 30, 2024 May 1, 2024 CDBG June 30, 2024 July 30, 2024 September 18, 2024 CDBG-CV September 30, 2023 October 30, 2023 November 6, 2023 CDBG-CV March 31, 2024 April 30, 2024 May 1, 2024 CDBG-CV June 30, 2024 July 30, 2024 September 18, 2024 Cause: The City’s monitoring controls were inadequate to ensure the timely submission of the required reports. Effect or Potential Effect: The City was not in compliance with the programs’ reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: 2023-006. Recommendation: We recommend the City strengthen its internal controls over grant reporting by implementing a formal tracking system and assigning clear responsibility for the preparation and timely submission of the required reports. Regular review of reporting deadlines should be incorporated to ensure ongoing compliance with program requirements. Views of Responsible Officials: Management endeavors to submit all required reports by required deadlines. While acknowledging that this does not always occur, the City has made vast improvements on timeliness of reports, especially PR29’s for CDBG and HOME. The year-end reports (June 30) due by July 30 can be difficult to submit timely if year-end close has not been completed. Regardless management is committed to ensuring all reports are filed within the 30 day timeframe
Management endeavors to submit all required reports by required deadlines. While acknowledging that this does not always occur, the City has made vast improvements on timeliness of reports, especially PR29’s for CDBG and HOME. The year-end reports (June 30) due by July 30 can be difficult to submit timely if year-end close has not been completed. Regardless management is committed to ensuring all reports are filed within the 30 day timeframe.
2023-006
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on October 22, 2024. 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 April 22, 2025, which was (486 days ago).
What is a management decision? →Finding 2023-004 Internal Control Over Allowable Activities/Allowable Costs – Payroll Expenditures Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2017-149-00; CA-90-Z085-00; CA-90-Y974-00; CA -2019- 033-00; CA -90-Y900-00; CA-2020-177-00; CA-2021-169-01; CA-2022-041-00; CA-2021-075-00 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): In accordance with 2 CFR §200.303 Internal Controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under §200.302 Financial Management, (b) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Under §200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition: During the audit, we reviewed payroll period ended September 24, 2022, December 17, 2022, February 25, 2023, and April 22, 2023. Except for the payroll period ended April 22, 2023, we could not verify if the Bus Operators’ and all other Federal Transit employee’s timecards were approved by their supervisors. The timecard reports were uploaded from the time entry system to the payroll module by the supervisors; however, there were no records on who reviewed the timecard reports or who completed the upload of the timecard reports to the payroll module. Cause: Although the City has been working on implementing the necessary approvals, these efforts had not taken full effect for the most part of the fiscal year 2023 until April 2023. Effect or Potential Effect: Without review or approval of time cards, inaccurate payroll expenditures could be charged to the federal programs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: 2022-007. Recommendation: We recommend that the City ensure the full implementation and consistent application of the established timecard approval policies for all Federal Transit employees and strengthen its monitoring mechanisms to verify that supervisors review and approve timecards for every payroll period, ensuring compliance with the policies throughout the entire fiscal year. Views of Responsible Officials: The City has implemented the recommendation first contained in 2022-007. There is a process in place where supervisor review and approval of timesheets is completed and documented. That process continues and will be in place for the entirety of the fiscal year ending June 30, 2024.
The City has implemented the recommendation first contained in 2022-007. There is a process in place where supervisor review and approval of timesheets is completed and documented. That process continues and will be in place for the entirety of the fiscal year ending June 30, 2024. Responsible Person: Kevin Saycocie Expected Implementation Date: 07/01/2024
2022-007
Finding 2023-005 Internal Control Over Suspension and Debarment Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2017-149-00; CA-90-Z085-00; CA-90-Y974-00; CA -2019- 033-00; CA -90-Y900-00; CA-2020-177-00; CA-2021-169-01; CA-2022-041-00; CA-2021-075-00 Assistance Listing Number: 21.207 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) Federal Agency: U.S. Department of Treasury Pass-Through Entity: N/A Federal Award Identification Number: N/A Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Prior to entering into subawards and contracts with award funds, recipients must ensure that contractors and subcontractors are not suspended from participating in federally funded projects. Verification is typically done by reviewing the System for Award Management (“SAM”) database and including certifications in contacts. Condition: During the audit over suspension and debarment, we noted that there were no documentation on whether the vendors were checked against the SAM database or obtained required certifications before contract awards. Cause: There were no formal policies or procedures of the verification on the suspension and debarment status of vendors before entering into a federally funded contract. Effect or Potential Effect: Without verifying whether vendors are suspended or debarred from working on federally-funded projects prior to the contract being awarded, the City could be contracting with vendors that are prohibited from working on federally funded projects and incurring potentially disallowed costs. Questioned Costs: None noted. Context: See condition above for the context of the procurement finding. No support was provided for 6 out of 6 Federal Transit Cluster vendors selected for testing and 3 out of the 3 CSLFRF vendors selected for testing to show suspension and debarment check was performed prior to contracting. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City update its purchasing policies and related procedures related to suspension and debarment to improve its internal control over compliance for suspension and debarment. Views of Responsible Officials: The City has implemented a new review, tracking and documentation process for all procurements. Staff will check all vendors -- regardless of the nature of the funding for the project – against SAM.GOV to check for disbarment. A PDF of the results for each vendor is saved in a project folder attached to each procurement. These files are stored on an internal network drive.
The City has implemented a new review, tracking and documentation process for all procurements. Staff will check all vendors -- regardless of the nature of the funding for the project – against SAM.GOV to check for disbarment. A PDF of the results for each vendor is saved in a project folder attached to each procurement. These files are stored on an internal network drive. Responsible Person: Jackie Leon Expected Implementation Date: 07/01/2024
Finding 2023-006 Reporting – Internal Control and Compliance Over Reporting Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grant/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-22-MC-06-0555; B-20-MW-06-0555 Assistance Listing Number: 21.207 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Entity: N/A Federal Award Identification Number: N/A Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): PR29, Cash on Hand Quarterly Reports – PR29 in the Integrated Disbursement and Information System (IDIS) reports the financial status of the grants and cooperative agreement funds and cash transactions using those funds. These reports are required to be submitted to HUD on a quarterly basis, 30 days after the reporting period end date. The due dates of each quarterly report is noted below: Quarterly Project and Expenditure Reports – All metropolitan cities and counties with a population that exceeds 250,000 residents that receive Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”) are required to submit Project and Expenditure Reports. For these recipients, the initial quarterly Project and Expenditure Report covered three calendar quarters from March 3, 2021 to December 31, 2021 was required to be submitted to U.S. Department of the Treasury by January 31, 2022. The subsequent quarterly reports will cover one calendar quarter and must be submitted by the last day of the month following the end of the period covered. The due dates of each quarterly reports is noted below: Condition: During the audit, we noticed that two out of four quarters of PR29 for CDBG and CDBG CV were not filed within the deadline, as shown below: During the audit, we noticed that one out of four quarters of Project and Expenditure Reports for SLFRF was not filed within the deadline, as shown below: Cause: Monitoring controls are inadequate to ensure the timely submission of the required reports. Effect or Potential Effect: The City was not in compliance with the programs’ reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: 2022-006. Recommendation: We recommend the City develop policy and procedures to ensure that the reports are prepared and submitted timely. Views of Responsible Officials: Management endeavors to submit all required reports by required deadlines. While acknowledging that this does not always occur, the City has made vast improvements on timeliness of reports, especially PR29’s for CDBG and HOME. The year-end reports (June 30) due by July 30 can be difficult to submit timely if year-end close has not been completed. Regardless management is committed to ensuring all reports are filed within the 30 day timeframe.
Management endeavors to submit all required reports by required deadlines. While acknowledging that this does not always occur, the City has made vast improvements on timeliness of reports, especially PR29’s for CDBG and HOME. The year-end reports (June 30) due by July 30 can be difficult to submit timely if year-end close has not been completed. Regardless management is committed to ensuring all reports are filed within the 30 day timeframe. Responsible Person: Sarby Singh Expected Implementation Date: 07/01/2024
2022-006
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on August 30, 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 March 1, 2024, which was (903 days ago).
What is a management decision? →Identification of the Federal Program: Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grant/Entitlement Grants Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Identification Number: B-20-MC-06-0555, B-20-MW-06-0555, B21-MC-06-0555 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Starting in federal fiscal year 2021, Entitlement Communities, Insular Areas, and non-Entitlement Counties in Hawaii are required to complete the Cash on Hand Quarterly Report (PR29) and submit it to the grantee?s HUD local field office through IDIS. Field offices will review the report for completeness and accuracy. The reporting frequency is the same as required of the SF-425, quarterly. The Quarterly Cash on Hand report must be submitted to the respective field office within 30 days after the end of the reporting period. The following federal fiscal year quarter reporting periods will be used for all quarterly reports. Reporting Period (End Date)/Due Date of Report (See Schedule of Findings and Questioned Costs for chart/table) September 30, 2021/October 30, 2021 December 31, 2021/January 30, 2022 March 31, 2022/April 30, 2022 June 30, 2022/July 30, 2022 Condition: During the audit, we noticed that three out of four quarters the PR29 for CDBG and CDBG CV were not filed within the deadline, as shown below: Reporting Period (End Date)/Due Date of Report/Submission Date (See Schedule of Findings and Questioned Costs for chart/table) September 30, 2021/October 30, 2021/January 3, 2022 December 31, 2021/January 30, 2022/April 26, 2022 June 30, 2022/July 30, 2022/September 20, 2022 Cause: Monitoring control is lacking to ensure timely submission of the required reports. Effect or Potential Effect: The City was not in compliance with the program?s reporting requirements. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommend the City to follow the Uniform Guidance to ensure that the reports are prepared and submitted timely. Views of Responsible Officials: Management recognizes the importance of filling reports timely, especially with Federal funding such as CDBG and HOME. In regards to the PR29 ?Cash on Hand? reports, the City was ? and continues to ? dealing with reconciling program inc. from the past fifteen years. Staff were having difficulty tracking a large amount of program income, and how it was spent, which directly impacted the City?s ability to provide accurate PR 29 reports. Needless to say, this research took considerable time and effort, causing slight delays in posting the ?Cash on Hand? reports. Moving forward Staff will strive to submit the reports by the required deadline and will work with their third-party consultant to assist as necessary. Staff has been in contact with its HUD representatives about the program income issue as well as the difficulty in posting PR 29 reports. Management feels strongly that this relationship with the City?s HUD representatives provides opportunities for improved communication on these and related issues.
Staff will strive to submit the reports by the required deadline and will work with their third-party consultant to assist as necessary. Staff has been in contact with its HUD representatives about the program income issue as well as the difficulty in posting PR 29 reports. Responsible Person: Rosemary Perch Expected Implementation Date: 07/01/2023
Identification of the Federal Programs: Assistance Listing Number: 20.507 Assistance Listing Title: Federal Transit Cluster Federal Agency: U.S. Department of Transportation Pass-Through Entity: N/A Federal Award Identification Number: CA-2017-149-00; CA-90-Z085-00; CA-90-Y974-00; CA -2019-033-00; CA -90-Y900-00; CA-2020-177-00; CA-2021-169-01; CA-2022-041-00; CA-2021-075-00 Assistance Listing Number: 21.027 Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Entity: N/A Federal Award Identification Number: 1505-0271 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): In accordance with 2 CFR ?200.303 Internal Controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under ?200.302 Financial Management, (b) (3) Records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Under ?200.430(i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity. Condition: During the audit, we could not verify if the Bus Operators? and Police Officers? timecards were properly approved by their supervisors. The timecard reports were uploaded from the time entry system to the payroll module by the supervisors; however, there were no records on who reviewed the timecard reports or completed the upload of the timecard reports to the payroll module. Additionally, 8 out of 25 Police Officers? personnel action forms could not be located. Cause: The Bus Line and Police Departments did not have formal policies and procedures over the timecard approval process. There was also ineffective monitoring of human resources processes, including the maintenance of personnel action forms. Effect or Potential Effect: Without approved personnel action forms and review or approval of time cards, inaccurate payroll expenditures could be charged to the federal programs. Questioned Costs: None noted. Context: See condition above for the context of the finding. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommended the City adopt formal policies and procedures on the documentation of timecard approval process for the Bus Line and Police Departments. The City should also implement regular monitoring and conduct periodic reviews of personnel files to verify the presence and completeness of personnel action forms. Views of Responsible Officials: Management has reviewed the payroll/timecard approval process. The City utilizes New World Systems eSuites for employees to enter their bi-weekly hours, and for employees and supervisors to approve timesheets. However, not all employees can utilize eSuites, as the requirements for timekeeping for Bus Operators, Police and Fire personnel is such that separate timekeeping systems must be maintained and utilized. To that end, staff has initiated a process whereby ? for employees not using eSuites ? manual review and approval of bi-weekly hours is conducted by supervisors in the appropriate department (i.e., Transit, Police, etc.). Management believes this additional review and approval level will provide the necessary back-up to improve internal control over timecards/timekeeping.
Staff has initiated a process whereby ? for employees not using eSuites ? manual review and approval of bi-weekly hours is conducted by supervisors in the appropriate department (i.e., Transit, Police, etc.). Management believes this additional review and approval level will provide the necessary back-up to improve internal control over timecards/timekeeping. Responsible Person: Kevin Saycocie Expected Implementation Date: 07/01/2023
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on June 29, 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 December 29, 2022, which was (1331 days ago).
What is a management decision? →Finding No. SA 2021-001 ? Schedule of Expenditures of Federal Awards (SEFA) Criteria: The following sections of the Uniform Guidance provide the following requirements: Section ?200.510 (b) Schedule of expenditures of Federal Awards; The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with ?200.502 - Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amounts of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: ? List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. ? Provide total Federal awards expended for each individual Federal program and the Assistance Listings number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. Section 200.303: The non-federal entity should establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal Award. Section 200.1 defines internal control for non-Federal entities as the processes designed and implemented by non-Federal entity to provide reasonable assurance regarding the achievement of the objectives in the following categories: (i) Effectiveness and efficiency of operations; (ii) Reliability of reporting for internal and external use Condition During our audit of the SEFA submitted by the City, we noted that the SEFA contained inconsistencies when compared to the supporting grant agreements and general ledgers. The federal expenditures of a program were overstated by $120,047 due to double take-up of a payment to a subrecipient. In addition, federal expenditures amounting to $121,178 were misclassified under another federal program. The City corrected the errors when these were referred to their attention. Cause/Effect The SEFA preparation and review process did not capture the inconsistencies in the federal expenditures amounts resulting in errors in the amounts reported in the SEFA. Finding No. SA 2021-001 ? Schedule of Expenditures of Federal Awards (SEFA) (continued) Questioned Costs None Recommendation We recommend that the City revisit its internal control over the preparation and review of SEFA in conjunction with its other federal reporting requirements, to ensure that federal reports for internal and external purposes are accurate and complete. Views of Responsible Personnel As with other federal programs that we receive funding, there will be a project number assigned to the funding program before any expenditures are incurred. This will prevent any issues of expenditures being misclassified to another federal program. Accounting Manager, Laurence Gong will be responsible Anticipated correction date is June 30, 2022
As with other federal programs that we receive funding, there will be a project number assigned to the funding program before any expenditures are incurred. This will prevent any issues of expenditures being misclassified to another federal program. Accounting Manager, Laurence Gong will be responsible Anticipated correction date is June 30, 2022
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 15, 2020. 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 September 15, 2020, which was (2166 days ago).
What is a management decision? →Finding No. SA 2019-001 ? Schedule of Expenditures of Federal Awards (SEFA) Criteria: Title 2: Grant and Agreements, Part 200 ? Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (?Uniform Guidance?), Subpart F Audit Requirements, specifically ?200.510 (b) Schedule of expenditures of Federal Awards: The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with ?200.502 - Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amounts of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: ? List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. ? Provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not available. For a cluster of programs also provide the total for the cluster. Condition During our review of the SEFA provided by the City, we noted that the SEFA included $1,017,350 in federal expenditures incurred during the fiscal years ended June 30, 2017 and 2018 that were not reported in the SEFA in those fiscal years. We learned that the Finance Department was not informed that the expenditures were partly funded by federal funds. The awards were passed through the State of California Department of Transportation and the grant agreements did not clearly specify the applicable CFDA number. Recommendation We recommend that the City establish a control procedure that requires all City Departments to provide the Finance Department a copy of all approved grant agreements prior to incurring the expenses. Finance staff should exert every effort to obtain copy of approved grant agreements when recording grant expenditures and implement process to evaluate whether they are federal expenditures.
Planned Corrective Action Management agrees with the recommendation and will establish a process whereby Finance is provided all approved grant agreements. In addition, Finance staff will work with Departments that utilize grant funds to ensure grant-related expenditures are reviewed by Finance staff to determine the true source of funds (i.e. Federal, etc.).
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 28, 2019. 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 September 28, 2019, which was (2519 days ago).
What is a management decision? →GSA_MIGRATION
GSA_MIGRATION
2016-001
GSA_MIGRATION
GSA_MIGRATION
2016-002
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 20, 2017. 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 September 20, 2017, which was (3257 days ago).
What is a management decision? →GSA_MIGRATION
GSA_MIGRATION
GSA_MIGRATION
GSA_MIGRATION
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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