CITY OF SALEM, OREGON SINGLE AUDIT REPORT

CITY OF SALEM, OREGON
SINGLE AUDIT REPORT
FOR THE YEAR ENDED JUNE 30, 2013
5499 AMY STREET • WEST LINN, OR 97068
PHONE: (503) 723-0300 • FAX: (503) 723-9946 • WWW.MERINACPAS.COM
City of Salem, Oregon
Single Audit Report
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 Program,
on Internal Control Over Compliance, and on the Schedule of Expenditures
of Federal Awards Required by OMB Circular A-133 ......................................................... 3
Schedule of Expenditures of Federal Awards .................................................................... 6
Notes to the Schedule of Expenditures of Federal Awards .............................................. 10
Schedule of Findings and Questioned Costs ................................................................... 11
THIS PAGE INTENTIONALLY LEFT BLANK CERTIFIEDPUBLICACCOUNTANTSANDCONSULTANTS
PARTNERS
KAMALA K. AUSTIN, CPA • TONYA M. MOFFITT, CPA
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
The Honorable Mayor and City Council
City of Salem, Oregon
We have audited, in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, the financial statements of the
governmental activities, the business-type activities, the aggregate discretely presented
component unit, each major fund, and the aggregate remaining fund information of City of
Salem, Oregon, as of and for the year ended June 30, 2013, and the related notes to the financial
statements, which collectively comprise City of Salem, Oregon’s basic financial statements and
have issued our report thereon dated December 10, 2013.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered City of Salem, Oregon’s internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate
in the circumstances for the purpose of expressing our opinions on the financial statements, but
not for the purpose of expressing an opinion on the effectiveness of City of Salem, Oregon’s
internal control. Accordingly, we do not express an opinion on the effectiveness of City of
Salem, Oregon’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their 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 there is a reasonable
possibility that a material misstatement of the entity’s financial statements will not be prevented,
or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control, that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies and therefore, material weaknesses or significant
deficiencies may exist that were not identified. Given these limitations, during our audit we did
1
5499 AMY STREET • WEST LINN, OREGON 97068 • PHONE: (503) 723-0300
•
FAX: (503) 723-9946 WWW.MERINACPAS.COM
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Salem, Oregon’s financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements, noncompliance with which
could have a direct and material effect on the determination of financial statement amounts.
However, providing an opinion on compliance 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 are 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 entity’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 entity’s
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
Merina & Company, LLP
West Linn, Oregon
December 10, 2013
2
CERTIFIEDPUBLICACCOUNTANTSANDCONSULTANTS
PARTNERS KAMALA K. AUSTIN, CPA • TONYA M. MOFFITT, CPA INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR
EACH MAJOR PROGRAM, ON INTERNAL CONTROL OVER COMPLIANCE, AND
ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY
OMB CIRCULAR A-133
Honorable Mayor and City Council
City of Salem, Oregon
Salem, Oregon
Report on Compliance for Each Major Federal Program
We have audited the City of Salem, Oregon’s compliance with the types of compliance
requirements described in the OMB Circular A-133 Compliance Supplement that could have a
direct and material effect on each of the City of Salem, Oregon’s major federal programs for the
year ended June 30, 2013. The City of Salem, Oregon’s major federal programs are identified in
the summary of auditor’s results section of the accompanying schedule of findings and
questioned costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts,
and grants applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of the City of Salem,
Oregon’s major federal programs based on our audit of the types of compliance requirements
referred to above. We conducted our audit of compliance in accordance with auditing 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 OMB Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations. Those standards and OMB Circular A-133 require that we plan and perform the
audit to obtain reasonable assurance about whether noncompliance with the types of compliance
requirements referred to above that could have a direct and material effect on a major federal
program occurred. An audit includes examining, on a test basis, evidence about the City of
Salem, Oregon’s compliance with those requirements and performing such other procedures as
we considered necessary in the circumstances.
3
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•
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We believe that our audit provides a reasonable basis for our opinion on compliance for each
major federal program. However, our audit does not provide a legal determination of the City of
Salem, Oregon’s compliance.
Opinion on Each Major Federal Program
In our opinion, the City of Salem, Oregon complied, in all material respects, with the compliance
requirements referred to above that could have a direct and material effect on each of its major
federal programs for the year ended June 30, 2013.
Report on Internal Control Over Compliance
Management of the City of Salem, Oregon is responsible for establishing and maintaining
effective internal control over compliance with the requirements referred to above. In planning
and performing our audit, we considered the City of Salem, Oregon’s internal control over
compliance with the types of requirements that could have a direct and material effect on each
major federal program to determine the auditing procedures that are appropriate in the
circumstances for the purpose of expressing our opinion on compliance for each major federal
program and to test and report on internal control over compliance in accordance with OMB
Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, we do not express an opinion on the effectiveness of the
City of Salem, Oregon’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that a 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 enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies. We did
not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
4
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 OMB Circular A-133. Accordingly, this report is not suitable for any other
purpose.
Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133
We have audited the financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component unit, each major fund, and the aggregate
remaining fund information of the City of Salem, Oregon, as of and for the year ended June 30,
2013, and the related notes to the financial statements, which collectively comprise the City of
Salem, Oregon’s basic financial statements. We issued our report thereon dated December 10,
2013, which contained an unmodified opinion on those financial statements that collectively
comprise the basic financial statements. Our audit was conducted for the purpose of forming an
opinion on the financial statements that collectively comprise the City of Salem, Oregon’s basic
financial statements. The accompanying schedule of expenditures of federal awards is presented
for purposes of additional analysis as required by U.S. Office of Management and Budget
Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a
required part of the basic financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other
records used to prepare the financial statements. The information has been subjected to the
auditing procedures applied in the audit of the basic 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 financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the schedule of
expenditures of federal awards is fairly stated, in all material respects, in relation to the financial
statements as a whole.
Merina & Company, LLP
West Linn, Oregon
December 10, 2013
5
CITY OF SALEM,
SALEM OREGON,
OREGON FEDERAL GRANT COMPLIANCE REPORT
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2013
Federal Grantor/Pass Through Grantor/
Program or Cluster Title
Federal
CFDA
Number
Federal Dept.
Dept or
Pass Through Entity
Identifying Number
City
Project
Number
Federal
Expenditures
Department of Agriculture
Farm Service Agency
Conservation Reserve Program
10.069
41-047-3
41
047 3
835075
11 307
11.307
EDA 07-79-06231
686009
191 749
191,749
Community Planning and Development
HOME Investment Partnerships Program
14 239
14.239
M-09-DC-41-0204
M
09 DC 41 0204
M-11-DC-41-0204
M
11 DC 41 0204
M 12 DC 41 0204
M-12-DC-41-0204
Various
111,790
111
790
17,577
51 848
51,848
Economic Development Initiative-Special
Initiative Special Projects
Mill Creek Corporate Center Water Line
14.251
B-10-SP-OR-0143
B
10 SP OR 0143
712002/686015
500,000 *
Community Development Block Grant Entitlement Grants - Cluster
Community Development Block Grants/Entitlement Grants
14 218
14.218
B-10-MC-41-0004
B
10 MC 41 0004
B-11-MC-41-0004
B-12-MC-41-0004
Various
386,401
386
401 *
586,701
,
*
192 715 *
192,715
$
12,759
Department of Commerce
Economic
E
i D
Development
l p
t Ad
Administration
i i t ti
Mill Creek Wetlands
D p
Department
off H
Housing
i g andd Urban
U b Development
D l p
T lC
Total
Community
iyD
Development
l p
Bl
Blockk G
Grant E
Entitlement
il
G
Grants - Cl
Cluster
1,165,817
1,165,817
T lD
Total
Department
p
off H
Housing
i g and
dU
Urban
b D
Development
l p
1,847,033
1
,,847,,033
D p
Department
off the
h IInterior
i
National Park Service
Preserve America Grant
Passed through Oregon Parks & Recreation:
Historic Preservation Fund Grants-In-Aid
Grants In Aid
Certified Local Grant
*Denotes Major Program
15.904
6
OR-13-15
OR
13 15
252793
677
F d lG
Federal
Grantor/Pass
t /P
Through
Th gh Grantor/
G t /
Program or Cluster Title
Federal
CFDA
Number
Federal Dept. or
Pass Through
P
Th gh Entity
E tity
Identifying Number
City
Project
P
j t
Number
F d l
Federal
Expenditures
Department of Justice
Asset Forfeiture Program
16 111
16.111
Various
D g Enforcement
Drug
E f
t Ad
Administration
i i t ti
Law Enforcement Assistance-Narcotics & Dangerous Drugs Training
O g i dC
Organized
Crime
i D
Drug
gE
Enforcement
f
tT
Task
kF
Force:
DEA Task Force Grant
16 004
16.004
PA-OR-160/162
Offi on Vi
Office
Violence
l
A
Against
g i W
Women
Passed through Oregon Criminal Justice Service Division:
Vi l
Violence
A
Against
g i tW
Women F
Formula
l G
Grants
t
16 588
16.588
VAWA C 2012S l PD 00005
VAWA-C-2012SalemPD-00005
Bureau of Justice Assistance
B ll tp f V
Bulletproof
Vestt P
Partnership
t
hip P
Program
g
16 607
16.607
N/A
Office of Community Oriented Policing Services
COPS Hiring
Hi i g Grant
G t
16 710
16.710
2010 UL WX 0020
2010-UL-WX-0020
Paul Coverdell Forensic Sciences Improvement Grant
16 742
16.742
2012-CD-BX-0023
B
Bureau
off JJustice
i A
Assistance
i
Congressionally Recommended Awards
A
Automated
d Ci
Citations
i
16 3
16.753
2009 1
2009-D1-BX-0226
0226
Bureau of Justice Assistance - Cluster
Ed d Byrne
Edward
By
M
Memorial
i l JJustice
i A
Assistance
i
G
Grant P
Program:
g
Community Service Officers
16 738
16.738
2009-DJ-BX-0377
C
Community
iyS
Service
i Offi
Officers
16 38
16.738
2010
2010-DJ-BX-0793
0 93
Community Service Officers
16 738
16.738
2011-DJ-BX-2341
Community
i y Service
i Officers
ffi
16.738
2012-DJ-BX-0551
ARRA Recovery Act-Edward Byrne Memorial Justice Assistance Grant Program:
M i C
Marion
County
yP
Police
li A
Agencies
g i G
Grant
16 804
16.804
2009 SB B9 1400
2009-SB-B9-1400
359865
51 745
51,745
352554
42 143
42,143
353622
68 475
68,475
352613
2 774
2,774
353027
351497
353,188
353
,188 *
78 298
78,298
350003
57,708
, 08
353025
353026
353028
353029
95
22,971
22
,9 1
97 997
97,997
4,959
,
350002
45,490
45,490
Total Bureau of Justice Assistance - Cluster
171,512
Total Department of Justice
825,843
Department of Transportation
Federal Highway Administration
Passed through Oregon Department of Transportation:
Highway Planning and Construction Cluster:
I 5 Construction Zone Enforcement Grant
I-5
II-55 at Kuebler Interchange
Interchange-Southbound
Southbound Ramp Imp
Salem Regional Traffic Signal Control Center
14th Street Bridge at Mill Creek
Summer Street Bridge at Mill Creek
Winter Street Bridge at Shelton Ditch
Ditch-Temp
Temp Repairs
High Street Bridge at Mill Creek Scour-Permanent Reprs
Winter
Wi
S
Street B
Bridge
idg at Sh
Shelton
l
Di
Ditch-Permanent
hP
R
Reprs
p
14th Street Bridge at Shelton Ditch-Permanent Reprs
S
Summer
St
Streett B
Bridge
id att Mill C
Creek-Permanent
kP
tR
Reprs
Union Street Railroad to Glen Creek Road
ARRA Recovery Act-Union
Act Union Street Railroad Bridge
20.205
20
205
20.205
20 205
20.205
20.205
20 205
20.205
20.205
20 205
20.205
20 205
20.205
20 205
20.205
20 205
20.205
20.205
20 205
20.205
Total Highway
g
y Planning
g and Construction Cluster
*Denotes Major Program
1113WKZN-421CCC
1113WKZN
421CCC
16858
26796/15615 &15616
DAR 470420
DAR 470418
DAR 470405
28811/27808
28813/18213
28627/18157
28812/27808
28774/16585
25589/16585
353577
712003
832796
711505
711506
711507
711508
711509
711510
711511
712505
709519
165
4,840
195 000
195,000
47,164
10 788
10,788
26,175
2 754
2,754
6,314
6,314
7 276
7,276
7 680
7,680
8,097
12 101
12,101
328,354
,
7
F d lG
Federal
Grantor/Pass
t /P
Through
Th gh Grantor/
G t /
Program or Cluster Title
Federal
CFDA
Number
Federal Motor Carrier Safety Administration
Passed through Oregon Department of Transportation:
Motor Carrier Safety:
Truck Inspections
20.218
TAC Operations
20 218
20.218
National Highway Traffic Safety Administration
Highway Safety Cluster
Passed through Oregon Association Chiefs of Police:
State and Community Highway Safety
2012 Three Flags Traffic Safety Grant
20.600
Speed Equipment Grant
20 600
20.600
Alcohol Traffic Safety & Drunk Driving Prevention Incentive Grants:
Drug Recognition Expert
20 601
20.601
2012 DUII Enforcement Grant
20.601
Federal Dept. or
Pass Through
P
Th gh Entity
E tity
Identifying Number
City
Project
P
j t
Number
F d l
Federal
Expenditures
28941
28941
353504
353590
24,939
2 511
2,511
K2 12 46 08
K2-12-46-08
SC 13 35 12 ddd
SC-13-35-12
353543
353637
4,510
7 494
7,494
164 AL 07-14-23
07 14 23
K8-12-12-38
K8
12 12 38
353501
353528
1,465
1
465
3,900
Total Highway Safety Cluster
17,369
Total Department of Transportation
373,173
Department of Treasury
Asset Forfeiture Program
21 000
21.000
UCSEQSH2008290400006001
39.003
N/A
/
45.310
359864
4 269
4,269
D
Department
t
t off G
Generall S
Services
i
Ad
Administration
i i t ti
Generall Services
i
Administration
d i i
i
Passed through Oregon Department of Administrative Services:
Donation
i off Federal
d l Surplus
pl Personall Property
p y
N/A
2,991
,
12-08-6p
12
08 6p
331239
50,700
DE OE0000319
DE-OE0000319
375323
1 841
1,841
Department
p
off National Foundation on the Arts and the Humanities
National Foundation on the Arts and the Humanities
Passed through Oregon State Library:
Reaching Out: A Community Assessment Model
Department of Energy
Electricity Delivery and Energy Reliability, Research, Development and Analysis
ARRA Recovery Act-Local
Act Local Energy Assurance Planning Initiative 81.122
81 122
*Denotes Major Program
8
Federal Grantor/Pass Through Grantor/
Program or Cluster Title
Federal
CFDA
Number
Federal Dept. or
Pass Through Entity
Identifying Number
City
Project
N b
Number
Federal
Expenditures
C
Corporation
ti for
f National
N ti
l andd Community
C
it Service
S i
Foster Grandparent
p
Program
g
94.011
10SFPOR004
219040
155,272
,
95.001
G13OR0002A
352603
1,617
97.036
97
036
97 042
97.042
FEMA-4055-DR-OR
FEMA
4055 DR OR
11-528 & 12-530
Various
375322
233,525
233
525
82 158
82,158
97.053
97
053
97 053
97.053
10-110
10 321
10-321
375324
375325
4,084
4
084
1,968
1,968
97.073
97
073
97 073
97.073
97 073
97.073
10-320
10
320
10-322
10 323
10-323
353635
353402
355326
6,296
6
,296
6 402
6,402
111,221
111,221
Executive Office of the President
High Intensity Drug Trafficking Areas Program
Department of Homeland Security
Passedd through
P
th gh Oregon
O g E
Emergency
g yM
Management:
g
t
Disaster Grants-Public Assistance
2012 Flood-Federal
Fl d F d l E
Emergency
g yM
Management
g
tA
Agency
g y
Emergency Management Performance Grant
Citi
Citizen
C
Corps
p P
Program
g
2010 Citizen Preparedness
Area
A Wid
Wide JIC
State Homeland Security Program
Joint
J i t State
St t B
Bomb
bT
Teams Ph
Phase 2
2010 State Homeland Security Grant
Regional
R gi l M
Mobile
bil D
Data C
Computer
p
A
Auto U
Update
pd
T t lD
Total
Department
t
t off H
Homeland
l d SSecurity
it
445 654
445,654
Total Federal Expenditures
*Denotes Major Program
$
9
3 913 578
3,913,578
CITY OF SALEM, OREGON
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
June 30, 2013
Note 1. General
The accompanying schedule of expenditures of federal awards presents the activity of all federal
financial assistance programs of the City of Salem, Oregon (the City).
Note 2. Significant Accounting Policies
Reporting Entity: The reporting entity is fully described in Note I. A to the City’s basic financial
statements.
Basis of Presentation: The information in the Schedule is presented in accordance with OMB
Circular A-133.
Federal Financial Assistance: Pursuant to the Single Audit Act and OMB Circular A-133, federal
financial assistance is defined as assistance provided by a federal agency, either directly or
indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees,
property, interest subsidies, insurance or direct appropriations. Accordingly, nonmonetary
federal assistance, including federal surplus property, is included in federal financial assistance
and, therefore, is reported on the Schedule, if applicable. Federal financial assistance does not
include direct federal cash assistance to individuals. Solicited contracts between the state and
federal government for which the federal government procures tangible goods or services are not
considered to be federal financial assistance.
Major Programs: The Single Audit Act and OMB Circular A-133 establish criteria to be used in
defining major federal financial assistance programs. Major programs for the City are those
programs selected for testing by the auditor using a risk-assessment model, as well as certain
minimum expenditure requirements, as outlined in A-133. Programs with similar requirements
may be grouped into a cluster for testing purposes.
Revenue and Expenditure Recognition: The receipt and expenditure of federal awards are
accounted for under the modified accrual method of accounting. Revenues are recorded as
received in cash or when measurable and available. Expenditures are recorded when the liability
is incurred.
Payments to subrecipients: Program expenditures reported in the SEFA include amounts
provided to subrecipients as follows:
CFDA#
14.218
16.738
16.804
Program Name
Community Development Block Grants/Entitlement Grants
Justice Assistance Grant (JAG) Program Cluster
Justice Assistance Grant (JAG) Program Cluster (ARRA)
10
Amount
$ 926,206
$ 30,261
$
2,589
CITY OF SALEM, OREGON
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
June 30, 2013
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
No
Significant deficiency(s) identified that are
Not considered to be material weaknesses?
Yes
None reported
Yes
No
Material weakness(es) identified?
Yes
No
Significant deficiency (s) identified that are
Not considered to be material weaknesses?
Yes
None reported
Noncompliance material to financial statements noted?
Federal Awards
Internal Control over major programs:
Type of auditor’s report issued on compliance for major
Programs:
Any audit findings disclosed that are required to be
Reported in accordance with OMB Circular A-133,
Section 510(a)?
Unmodified
Yes
No
Identification of major programs:
CFDA Number
14.218
14.251
16.710
Name of Federal Program or Cluster
Community Development Block Grant
Economic Development Initiative
Community Oriented Policing Services
Dollar threshold used to distinguish between Type A
Type B programs:
$300,000
Yes
Auditee qualified as low-risk auditee?
11
No
CITY OF SALEM, OREGON
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
June 30, 2013
Section II – Financial Statement Findings
None
Section III – Federal Awards Findings and Questioned Costs
None
Section IV – Schedule of Prior Federal Award Findings and Questioned Costs
2012-1: CFDA 14.218 Community Development Block Grant (CDBG) - Financial
Reporting
Condition: The City did not submit the SF-425 Federal Financial Reports for the first two
quarters and submitted the 3rd quarter late for FY 2012.
Criteria: The SF-425 Federal Financial Reports are due by the 30th of the month following the
end of the quarter.
Effect: Failure to submit the required reports could result in sanctions and/or withdrawal of grant
funding from the awarding agency.
Cause: The City did not monitor compliance with reporting requirements. Recommendation: Merina and Company recommends the City implement procedures (ie.
calendar notifications/ticklers) to ensure reports are timely prepared and submitted as required.
Management Response and Corrective Action Plan:
Effective July 1, 2011, the SF-425 Federal Financial Reports were to be submitted quarterly
rather than annually as in prior years. The City concurs that this new reporting requirement was
not met. Corrective measures are now set in place to ensure reports are submitted timely.
Status:
The City resolved this issue as soon as it was identified.
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