SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
The City prepared a Schedule of Federal Grant Receipts and Disbursements for 2010 that was
materially inaccurate. The City's grant schedule did not include the proper Catalog of Federal Domestic Assistance (CFDA) titles and numbers for the following grants:
Program Title Per City CFDA#
CDBG - Entitlement Grants Custer - Neighborhood Stabilization Program 14.859 14.218
ARRA Community Development Block Grant ARRA Entitlement Grants (CDBG-R) -- 14.253
Emergency Shelter Grants Program 14.218 14.231
HOME Investment Partnerships Program 14.403 14.239
ARRA Homelessness Prevention and Rapid Re-Housing Program 14.235 14.257
Fair Housing Assistance Program - State and Local 14.403 14.401
Federal Equity Sharing -- 16.xxx
ARRA Federal Transit - Formula Grants -- 20.507
State and Community Highway Safety 20.604 20.600
Alcohol Traffic Safety and Drunk Driving Prevention Incentive Grants 20.604 20.601
Capitalization Grants for Clean Water State Revolving Funds -- 66.458
ARRA Capitalization Grants for Drinking Water State Revolving Funds -- 66.468
ARRA Energy Efficiency and Conservation Block Grant Program (EECBG) -- 81.128
In addition, grants awarded through the American Recovery and Reinvestment Act of 2009
(ARRA) were not identified on the City's grant schedule. The following grants were determined to be
ARRA funded grants:
CFDA # Program Title Expended
14.253 ARRA Community Development Block Grant ARRA Entitlement Grants (CDBG-R) $ 549,779
14.257 ARRA Homelessness Prevention and Rapid Re-Housing Program 8 64,720
20.205 ARRA Highway Planning and Construction 58,484
20.507 ARRA Federal Transit - Formula Grants 2 09,378
66.468 ARRA Capitalization Grants for Drinking Water State Revolving Funds 1,072,682
81.128 ARRA Energy Efficiency and Conservation Block Grant Program (EECBG) 3 36,337
The City did not ensure that employees had the adequate training, nor did they take advantage of
available opportunities to seek the guidance necessary, to prepare an accurate Schedule of Expenditures
of Federal Awards. In addition, there was a lack of management oversight or approval of the schedule
before it was filed with the state. Adequate internal control over reporting of federal awards requires that
employees be aware of the applicable requirements and that they have the requisite knowledge and skills
to prepare accurate schedules.
In addition, adequate internal control requires sufficient supervision and
oversight by management and the governing bodies to ensure accurate reporting of federal awards.
Circular No. A-133, Audit of States, Local Governments, and Non-Profit Organizations, Subpart
C, has the following requirements for grantees:
"The auditee shall:
(a) Identify, in its accounts, all Federal awards received and expended and the Federal
programs under which they were received. Federal program and award identification
shall include, as applicable, the CFDA title and number, award number and year, name of
the Federal agency, and name of the pass-through entity.
(b) Maintain internal control over Federal programs that provides reasonable assurance
that the auditee is managing Federal awards in compliance with laws, regulations, and
the provisions of contracts or grant agreements that could have a material effect on each
of its Federal programs.
(c) Comply with laws, regulations, and the provisions of contracts or grant agreements
related to each of its Federal programs.
(d) Prepare appropriate financial statements, including the schedule of expenditures of
Federal awards in accordance with §___.310.
§___.310 Financial statements.
(b) Schedule of expenditures of Federal awards. The auditee shall also prepare a
schedule of expenditures of Federal awards for the period covered by the auditee's
financial statements. 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 award years, the
auditee may list the amount of Federal awards expended for each award year
separately."
......
http://www.in.gov/sboa/WebReports/B39219.pdf%20pages%2046%20and%2048Nearly $3,000,000 in expenditures which were unaccounted for. 8)