CITY OF BAKERSFIELD, CALIFORNIA
SINGLE AUDIT REPORTS
FOR THE YEAR ENDED JUNE 30, 2022
CITY OF BAKERSFIELD, CALIFORNIA
SINGLE AUDIT REPORTS
FOR THE YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS
Page
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................. 1
Independent Auditor’s Report on Compliance for Each Major Federal Program and on Internal Control over Compliance Required by the Uniform Guidance ................................ 3
Schedule of Expenditures of Federal Awards .................................................................................... 6
Notes to Schedule of Expenditures of Federal Awards ..................................................................... 8
Schedule of Findings and Questioned Costs ..................................................................................... 13
1 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and
Members of the City Council
City of Bakersfield, California
We have audited, in accordance with the auditing standards gene rally accepted in the United States of America and the standards applicable to financial audits contai ned in Government Auditing Standards issued by the Comptroller General of the United States, the fin ancial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Bakersfield, California (the City), as of and for t he year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 20, 2023.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statement s, we considered the City’s internal control over financial reporting (internal control) as a basis for desi gning audit procedures that are appropriate in the circumstances for the purpo se of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Ci ty’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allo w management or employees, in the normal course of performing the ir assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that the re is a reasonable possibility that a material misstatement of the City’s financial statements will not be pre vented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combinati on of deficiencies, in internal control that is less severe than a material weakness, yet important eno ugh to merit attention by those charged with governance.
Our consideration of internal c ontrol was for the limited purpo se described in the first paragraph of this section and was not designed to i dentify all deficiencies in in ternal control that might be material weaknesses or significant deficiencies. Given these limitations , during our audit we did not identify any deficiencies in internal control that we consider to be materia l weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
2 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Cit y’s financial statements are free from material misstatement, we performed tests of its compliance wit h certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on complian ce with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that a re required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Acc ordingly, this report is not suitable for any other purpose.
BROWN ARMSTRONG
ACCOUNTANCY CORPORATION
Bakersfield, California
December 20, 2023
3 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR
EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and
Members of the City Council
City of Bakersfield, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Bakersfield’s (the City) compliance with the types of compliance requirements identified as subject to audit in the U.S. Office of Management and Budget (OMB) Compliance Supplement that could have a direct and material effect on each of the Ci ty’s major federal programs for the fiscal year ended June 30, 2022. The City’s ma jor federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.
In our opinion, the City complied, in all material respects, wi th the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs identified in the summary of auditor’s results section of the a ccompanying schedule of findings and questioned costs for the year ended June 30, 2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditin g standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and t he audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Our responsibilities under those standards
and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our o ther ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal deter mination of the City’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control o ver compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.
4 Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accept ed in the United States of A merica, Government Auditing Standards, and the Uniform Guidance will always detect material noncomplia nce when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepre sentations, or the override of internal control. Noncompliance with the compliance requirements referre d to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City ’s compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with auditing standards ge nerally accepted in the United States of America, Government Auditing Standards, and the Uniform Guidance, we:
Exercise professional judgment and maintain professional skept icism throughout the audit. Identify and assess the risks of material noncompliance, wheth er due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compl iance with the compliance requirements referred to above and performing such other proced ures as we considered necessary in the circumstances.
Obtain an understanding of the Ci ty’s internal control over co mpliance relevant to the audit in order to design audit procedures that are appropriate in the ci rcumstances and to test and report on internal control over compliance in accordance with the Unif orm Guidance, but not for the purpose of expressing an opinion on the effectiveness of the Ci ty’s internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governan ce regarding, among other matters, the planned scope and timing of the audit and any significant d eficiencies and material weaknesses in internal control over compliance that we identified during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or o peration of a control over compliance does not allow management or employees, in the norma l course of performing their assigned functions, to prevent, or detect and correct, noncompliance wit h a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance i s a deficiency, or a combination of deficiencies, in internal contr ol over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important eno ugh to merit attention by those charged with governance.
Our consideration of internal cont rol over compliance was for t he limited purpose described in the Auditor’s Responsibilities for t he Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these l imitations, during our audit we did not identify any deficiencies in internal control over compliance t hat we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in in ternal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opi nion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
5 The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate rema ining fund information of the City, as of and for the fiscal year ended June 30, 2022, and the related notes to the financial statement s, which collectively comprise the City’s basic financial statements. We issued our report thereon dated December 20, 2023, which contained unmodified opinions on those financial statements. Our audit wa s conducted for the purpose of forming opinions on the financial statement s that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is pres ented for purposes of additional analysis as required by the Uniform Guidance and is not a requi red part of the basic financial statements.
Such information is the responsibility of management and was de rived from and relates directly to the underlying accounting and other records used to prepare the bas ic financial statements. The information has been subjected to the auditing procedures applied in the au dit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financia l statements or to the basic financial statements themselves, and other additional procedures in accor dance with auditing standards generally accepted in the United States of America. In our opinion, the s chedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
BROWN ARMSTRONG
ACCOUNTANCY CORPORATION
Bakersfield, California
December 20, 2023
The accompanying notes are an integral part of this schedule. 6 CITY OF BAKERSFIELD, CALIFORNIA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2022
Federal Grantor/ Assistance Pass-Through
Pass-Through Grantor/ Listing Gran t Identifying Passed Through Fede ral Program Title Numbe r Number to Subrecipients Expenditures U.S. Department of Housing and Urban Development:
Direct Programs:
Community Development Block Grants - Entitlement Grants 14.218 N/ A- $ 6,926,566$ Emergency Shelter Grant Program 14.231 N/A - 2,101,130 Housing Opportunities for Persons with AIDS 14.241 N/A - 629,669 Home Investment Partnerships Program 14.239 N/A - 1,460,014 Neighborhood Stabilization Program 14.256 N/A - 99,050 Total U.S. Department of Housing and Urban Development - 11,216,429 U.S. Department of Transportation:
Direct Program:
Airport Improvement Program 20.106 N/A - 560,825 Passed through California Office of Traffic Safety:
State and Community Highway Safety 20.600 PT1478 - 236,978 Passed through California Department of Transportation:
Highway Planning and Construction Grants:
Surface Transportation Program 20.205 STPL-5109 - 5,175,970 Transportation Equity Act 20.205 HTP2IL-5109; PRNS-5109; and NCIIP-5109 - 28,216,137
State Highway Operation and Protection Program (SHOPP) 20.205 ACN HP-P099(591) - 281,626 Highway Bridge Replacement 20.205 BRLSZD-5109 (046) - 4,865,093 Congestion Mitigation and Air Quality Program 20.205 CML-5109 - 2,548,843 Subtotal - Highway Planning and Construction Grants - 41,087,669 Total U.S. Department of Transportation - 41,885,472 U.S. Department of Treasury
Passed through California Department of Finance:
COVID-19: Coronavirus Relief Fund 21.019 N/A 5,422,283 5,422,283 Total U.S. Department of Treasury 5,422,283 5,422,283 U.S. Environmental Protection Agency:
Direct Program:
Brownfields Assessment and Cleanup Cooperative Agreements 66.818 N/A - 18 Total U.S. Environmental Protection Agency - 18 U.S. Department of Homeland Security:
Passed through California Emergency Management Agency:
Disaster Grants - Public Assistance 97.036 FEMA-4305-DR-CA; Cal OES ID:087-91052 - 234,412 Total U.S. Department of Homeland Security - 234,412 Total Expenditures of Federal Awards, Excluding Beginning Loan Balances 5,422,283 $ 58,758,614 $
The accompanying notes are an integral part of this schedule. 7 CITY OF BAKERSFIELD, CALIFORNIA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (Continued)
FOR THE YEAR ENDED JUNE 30, 2022
Federal Grantor/ Assistance Pass-Through
Pass-Through Grantor/ Listing Gran t Identifying Passed Through Fede ral Program Title Numbe r Number to Subrecipients Expenditures U.S. Department of Housing and Urban Development:
Direct Programs:
Community Development Block Grants - Entitlement Grants 14.218 N/ A- $ 10,756$ Home Investment Partnerships Program 14.239 N/A - 16,881,983 Total Beginning Federal Loan Balances with Continuing Complianc e Requirements - 16,892,739 Total Expenditures of Federal Awards, Including Beginning Loan Balances 5,422,283 $ 75,651,353 $ Beginning Federal Loan Balances with Continuing Compliance Requ irements
8 CITY OF BAKERSFIELD, CALIFORNIA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2022
NOTE 1 – GENERAL
The accompanying Schedule of Exp enditures of Federal Awards (SE FA) presents the activity of all Federal Financial Assistance programs of the City of Bakersfield, California (the City). As defined in Note 1 of the Notes to the City’s basic financial statements, those financial statements and the accompanying SEFA present the City and its component units, if any, entities for which the City is considered to be financially accountable. Blended component units, although lega lly separate entities, are, in substance, part of the City’s operations and so data from these units are combined with data of the City. Discretely presented component units, on the other hand, are reported in a separate column in the combined financial statements of the City to emphasize that they are leg ally separate from the City. Each blended and discretely presented component unit has a June 30 year-end. The City’s Annual Comprehensive Financial Report (ACFR) may be obtained at the Finance Department.
Federal financial assistance received directly from Federal age ncies as well as Federal financial assistance passed through other government agencies are included on the SEFA.
NOTE 2 – BASIS OF ACCOUNTING
The accompanying SEFA is presented using the accrual basis of accounting, which is described in Note 1 of the Notes to the City’s basic financial statements.
NOTE 3 – RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
Amounts reported in the accompanying schedule, on pages 9-12, a gree with the amounts reported in the related periodic Federal financial reports.
NOTE 4 – INDIRECT COST RATE
The City has elected not to use the 10% de minimis indirect cos t rate allowed under the Uniform Guidance.
NOTE 5 – LOANS WITH CONTINUING COMPLIANCE REQUIREMENTS
Outstanding federally-funded program loans with a continuing co mpliance requirements had the following balances and activities for the year ended June 30, 2022:
Assistance Balance Balance
Listing Number Program Title June 30, 2021 Increase Decrease June 30 , 2022
14.218 Community Development Block
Grants/Entitlement Grants 10,756$ - $ - $ 10,756$
14.239 Home Investment Partnerships Program 16,881,983 - 158,674 16,723,309 Total 16,892,739$ - $ 158,674$ 16,734,065 $
9 NOTE 6 – AMOUNT PROVIDED TO SUBRECIPIENTS
The City has provided federal awards to various organizations. The amounts provided to subrecipients are summarized as follows:
Assistance Amount
FEDERAL GRANTOR OR Listing Contract or Provided to
Pass-Through Grantor Federal Progr am Number Subrecipient Program Nu mber Subrecipients California Department of Finance COVID-19: Coronavirus Relief Fu nd 21.019 Kern County Housing Authority 2020-152 5,422,283 $
NOTE 7 – RECONCILIATION TO BASIC FINANCIAL STATEMENTS
The following is a reconciliation of the amounts listed in the SEFA to the City’s basic financial statements:
U.S. Department of Housing and
Urban Development
Community Housing
Development Emergency Opportunities for Home Neighborhood Airport Sta te and Highway Block Grants Shelter Persons Investment Stabilization Improvement Community Planni ng and - Entitlement Grants Grant with AIDS Partnerships Program Program Hig hway Safety Construction Federal Financial
Assistance Recognized 6,778,169$ 2,101,130 $ 629,669 $ 1,460,014 $ 99,050 $ 560,825 $ 236,978 $ 41,087,669 $ Total 6,778,169 $ 2,101,130 $ 629,669 $ 1,460,014 $ 99,050 $ 560,825 $ 236,978 $ 41,087,669 $
Reimbursable
Disbursement/Expenditure 6,926,566$ 2,101,130 $ 629,669 $ 1,460,014 $ 99,050 $ 560,825 $ 236,978 $ 41,087,669 $ Total Reimbursable
Disbursement/Expenditure 6,926,566$ 2,101,130 $ 629,669 $ 1,460,014 $ 99,050 $ 560,825 $ 236,978 $ 41,087,669 $ Unpaid Billings as of June 30, 2022 - $ - $ - $ - $ - $ - $ - $ (7,088,561)$ Due from State/Local Governments - - - - - - - - Accrued Revenue June 30, 2022 729,600 1,280,706 - - 99,050 - - 7,088,561 Due from Other Governmental Agencies 729,600$ 1,280,706 $ - $ - $ 99,050$ - $ - $ - $ (Continued)
U.S. Department of Transportation
Federal Grantor/Program Title
10 NOTE 7 – RECONCILIATION TO BASIC FINANCIAL STATEMENTS (Continued)
U.S. Department of U.S. Environmental U.S. Department
Protection Agency
Disaster Equitable Coronavirus Brownfields Edward Byrne Grants Public Sharing Coronavirus State & Local Fiscal Assessment & Cleanup Memorial Assistance Program Relief Fund Recovery Fund Cooperative Agreement G rant Federal Financial
Assistance Recognized 234,412$ - $ 5,422,283$ - $ 18 $ - $ Total 234,412 $ - $ 5,422,283$ - $ 18 $ - $ Reimbursable
Disbursement/Expenditure 234,412$ - $ 5,422,283$ - $ 18 $ - $ Total Reimbursable
Disbursement/Expenditure 234,412$ - $ 5,422,283$ - $ 18 $ - $ Unpaid Billings as of June 30, 2022 - $ - $ - $ - $ - $ - $ Due from State/Local Governments - - - - - - Accrued Revenue June 30, 2022 - - - - - - Due from Other Governmental Agencies - $ - $ - $ - $ - $ - $ of JusticeHomeland Security
Federal Grantor/Program Title
U.S. Department of Treasury
11 NOTE 7 – RECONCILIATION TO BASIC FINANCIAL STATEMENTS (Continued)
The following is a reconciliation of the variances between Expenditures and Federal Financial Assistance recognized:
Community Housing
Development Emergency Opportunities for Home Neighborhood Airport Sta te and Highway Block Grants Shelter Persons Investment Stabilization Improvement Community Planni ng and - Entitlement Grants Grant with AIDS Partnerships Program Program Hig hway Safety Construction Federal Financial
Assistance Recognized 6,778,169$ 2,101,130 $ 629,669 $ 1,460,014 $ 99,050 $ 560,825 $ 236,978 $ 41,087,669 $ Total 6,778,169 $ 2,101,130 $ 629,669 $ 1,460,014 $ 99,050 $ 560,825 $ 236,978 $ 41,087,669 $
Total Disbursement/Expenditure 6,926,566$ 2,101,130 $ 629,669 $ 1,460,014 $ 99,050 $ 560,825 $ 236,978 $ 41,087,669 $ Variance of Revenues Recognized
Over/(Under) Expenditures (148,397) - - - - - - - Program Income Used (148,397) - - - - - - - Total - $ - $ - $ - $ - $ - $ - $ - $ (Continued)
Urban Development
Federal Grantor/Program Title
U.S. Department of Housing and
U.S. Department of Transportation
12 NOTE 7 – RECONCILIATION TO BASIC FINANCIAL STATEMENTS (Continued)
U.S. Department of U.S. Environmental U.S. Department
Protection Agency
Disaster Equitable Coronavirus Brownsfield Edward Byrne Grants Public Sharing Coronaviru s State & Local Fiscal Assessment & Cleanup Memorial Assistance Program Relief Fund Recovery Fund Cooperative Agreement G rant Federal Financial
Assistance Recognized 234,412$ - $ 5,422,283$ - $ 18 $ - $ Total 234,412 $ - $ 5,422,283$ - $ 18 $ - $ Total Disbursement/Expenditure 234,412$ - $ 5,422,283$ - $ 18 $ - $ Variance of Revenues Recognized
Over/(Under) Expenditures - - - - - - Program Income Used - - - - - - Total - $ - $ - $ - $ - $ - $ Federal Grantor/Program Title
of JusticeHomeland Security U.S. Department of Treasury
13 CITY OF BAKERSFIELD, CALIFORNIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
JUNE 30, 2022
SECTION I – SUMMARY OF AUDITOR’S RESULTS
Financial Statements:
Type of auditor's report issued Unmodified
Internal control over financial reporting:
Material weakness (es) identified? yes x no
S ignificant deficiencies identified
not considered to be material weaknesses? yes x no
Noncompliance material to financial statements noted? yes x no
Federal Awards:
Internal control over major programs:
Material weakness (es) identified? yes x no
S ignificant deficiencies identified
not considered to be material weaknesses? yes x no
Type of auditor's report issued on compliance for
major programs: Unmodified
Any audit findings disclosed that are required to be
reported in accordance with the Uniform Guidance? yes x no
Identification of major programs:
Assistance Listing
Number(s) Name of Federal Program or Cluster
14.231
20.205
Emergency Shelter Grant Program
Highway Planning and Construction Grants
Dollar threshold used to distinguish between Type A
and Type B programs: $2,269,541
Auditee qualified as low-risk auditee? x yes no
SECTION II – FINDINGS RELATING TO FINANCIAL STATEMENTS REQUIRED UNDER
GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS (GAGAS)
None.
14 SECTION III – FINDINGS AND QUESTION ED COSTS – MAJOR FEDERAL AWA RD PROGRAMS AUDIT
None.
SECTION IV – STATUS OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
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) § 200.33 2 (d), the pass-through entity must monitor the activities of the subrecipient as necessary to ensu re 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 of Bakersfield (the City) failed to provide subrecipie nt monitoring evidence that substantiates the monitoring has been performed. The City admitted that it did no t conduct subrecipient monitoring procedures for the underlying program.
Cause
There is a lack of manpower to do the monitoring work; the fund ing 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 allowab le could be charged to the program by the City. It was not practical to extend our auditing procedures su fficiently 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 o f 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 pr ogram for individuals who were unemployed or underemployed because of the negative impacts of the pandemic. The program was put together rather quickly in order to get those individuals bette r employment opportunities as soon as possible. This one-time program was not initially viewed as a p rogram that would require subrecipient monitoring because the training o ccurred 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
15 program with reported outcomes and an acceptable use of these r elief dollars, no other oversight was considered necessary. In the future, any similar relief progra ms contracted out to 3 rd p a r t y s e r v i c e providers will include a subrecipient monitoring segment in the agreement to insure compliance with the Federal grant requirements.
Current Year Status
Implemented.