Revision to Agenda Item #18
Receive and File Annual Single audit on Federal Expenditures Report for Year Ended June 30, 2022
• Revising page 3 of the staff report (page 2205 of agenda) due to a grammatical error wherein the word "personal" was improperly utilized instead of "personnel" • Corrected page attached
• The same error is found on pages 17 and 18 of Attachment A (pages 2226 and 2227 of agenda)
• The same error is found on pages 6 and 7 of Attachment B (pages 2244 and 2245 of agenda) Corrective Action Plan
Staff has received an email from Kassie Radermacher, Principal with CliftonLarsonAllen LLP (CLA) that indicated the findings were relative to "personnel" services, specifically payroll and standard City employee fringe benefits. Her email further indicated the single audit and Corrective Action Plan cannot be edited as the report has already been distributed to the federal government electronically, and indicated the City could rely upon the attached email clarification.
award; a federal award and nonfederal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. From July 2021 through September 2021, personal personnel services charged were recorded for two employees based on budget to the program and an after-the-fact determination of personal personnel services charged to the program was not conducted and adjustments, if necessary, were not recorded. In addition, the City corrected this matter beginning October 2021 and this finding did not apply from October 2021 through June 2022. In addition, in some cases, overtime charges occurred that were not supported by timesheets. 2022-006 Significant Deficiency in Internal Control over Compliance Allowable Costs
Uniform Guidance Title 2, Subtitle A, Chapter II, Part 200, Subpart E, §200.430 requires payroll charges to be supported by a system of internal control, which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
After the findings the City received in the prior year audit, the City revised the internal controls over payroll to require a supervisor's review and approval of hours charged to federal awards on the electronic timesheets, which is in line with the requirements of the Uniform Guidance. In 2 out of 12 payroll transactions tested, there was no supervisor approval of hours charged to the federal award, which was a lack of internal controls. 2022-007 Significant Deficiency in Internal Control over Compliance Reporting Prime recipients awarded a federal grant greater than or equal to $30,000 are subject to FFATA sub-award reporting requirements as outlined in the Office of Management and Budgets guidance issued August 13, 2020. The City is a prime recipient and provided subawards totaling $135,000 to three recipients, each over the $30,000 reporting threshold. Two out of the three FFATA reports were filed for these recipients. Also, the two FFATA reports that were filed occurred in the month of August 2022 for the obligation date of July 1, 2021, which is not the end of the month following the month in which the sub-grant was awarded.
2022-008 Significant Deficiency in Internal Control over Compliance (Suspension and Debarment)
2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of suspension and debarment. The City was not able to provide supporting documentation that the verification of suspension or debarment was performed prior to entering into the contract.
Deficiencies 22-005, 22-006, and 22-007 are repeated findings from the FYE 2021 single audit. Although corrective measures were taken after that single audit was completed, there were some early months in the 21-22 fiscal year where the issues were being addressed; however, there was some slight carryover into the 21-22 fiscal year.
Deficiencies 22-004 and 22-008 are new findings. As mentioned in the corrective action plan, Executive Management is initiating an internal auditor function to help identify the causes of these findings and take appropriate action to eliminate future occurrences. It is anticipated the internal auditing firm will begin its work in late June or early July. 2205
Sophie Smith
From: Radermacher, Kassie <[email protected]> Sent: Tuesday, June 20, 2023 2:58 PM
To: Candice Ponce; Sophie Smith; Kim Scott; Carmen Cun
Subject: RE: [External] "Personal" or "Personnel"
[EXTERNAL EMAIL]: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.
Good afternoon,
Unfortunately, once a report has been approved by the City, it is finalized, and there can be no changes. The auditing standards require us to lock down the binder and edits are not possible. The binder lockdown and report distribution to the federal government (electronically) has already occurred so different versions of this report are not permitted by the standards. The item can be clarified during the meeting should there be any questions. The City does have the email from me stating it was personnel charges - payroll and standard City employee fringe benefits.
Kassie Radermacher, CPA, CFE
Principal
State and Local Government
CLA (CliftonLarsonAllen LLP)
Direct 714-795-5382
[email protected]
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
Discover why CLA is a Great Place to Work*.
From: Candice Ponce <[email protected]>
Sent: Tuesday, June 20, 2023 2:46 PM
To: Radermacher, Kassie <[email protected]>; Sophie Smith <[email protected]>; Kim Scott <[email protected]>; Carmen Cun <[email protected]> Subject: RE: [External] "Personal" or "Personnel"
You don't often get email from [email protected]. Learn why this is important Think Security - This email originated from an external source. Be cautious with any links or attachments Good afternoon Kassie,
The "Personal" instead of "Personnel" typos are not limited to the staff report. The typos occurred on pages 17 and 18 of the Single Audit of Federally Assisted Grant Programs for Year Ended June 30, 2022, report as well as pages 6 and 7 of the Corrective Action Plan for the Year Ended June 30, 2022. Will you please send us the corrected pages as soon as possible so we can prepare our Agenda Item revision for tonight's Council meeting.
Thank you,
1 Candice Ponce
CITY Management Technician
760.243.6334 - [email protected]
CITY MANAGEMENT
САСПРОРМ CITY CLERK | RISK MANAGEMENT | PIO
From: Radermacher, Kassie <[email protected]> Sent: Tuesday, June 20, 2023 12:31 PM
To: Sophie Smith <[email protected]>; Kim Scott <[email protected]>; Carmen Cun <[email protected]>
Subject: RE: [External] "Personal" or "Personnel"
[EXTERNAL EMAIL]: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.
Hi Sophie - it was personnel charges - payroll and standard fringe benefits of City employees.
Kassie Radermacher, CPA, CFE
Principal
State and Local Government
CLA (CliftonLarsonAllen LLP)
Direct 714-795-5382
[email protected]
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Giobal. See CLAglobal.com/disclaimer.
Discover why CLA is a Great Place to Work*.
From: Candice Ponce <[email protected]> On Behalf Of Sophie Smith Sent: Tuesday, June 20, 2023 10:37 AM
To: Kim Scott <[email protected]>; Carmen Cun <[email protected]> Cc: Radermacher, Kassie <[email protected]> Subject: [External] "Personal" or "Personnel"
Importance: High
Think Security - This email originated from an external source. Be cautious with any links or attachments.
Good morning,
Please see the attached screenshot of finding 2022-005 from the Annual Single Audit Staff Report (Agenda Item 18) on page 2204 of tonight's Agenda. Were there in fact "Personal" services charged to the program or were there "Personnel" services charged. Please confirm as soon as possible as I will have to be able to explain this at the Council meeting.
Thank you,
Sophie L. Smith
Deputy City Manager
2 City of Victorville
14343 Civic Drive
Victorville, CA 92392
760-955-5033 office
760-559-3065 cell
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