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City of Redwood City 7.1.G. - Page 182 <br /> Single Audit Reports <br /> Schedule of Findings and Questioned Costs, Continued <br /> For the Year Ended June 30, 2013 <br /> D. PRIOR YEAR FINDINGS AND QUESTIONED COSTS, Continued <br /> Status: <br /> The Public Works Division formed a new administrative group to review all contracts, bid specifications, <br /> competitive proposals, grant applications, and other documents for completeness before they go to the <br /> Assistant Public Works Director for approval. <br /> SA2012 -03 Schedule of Expenditures of Federal Awards <br /> Criteria: <br /> As described in § .310(b)(3) of OMB Circular A -133, the schedule of expenditures of federal awards for <br /> the period covered by the City's financial statements shall include a list of individual Federal programs by <br /> Federal agency, and provide total Federal awards expended for each individual Federal program. <br /> Condition: <br /> The City had incurred expenditures related to the use of program income for the CDBG program. These <br /> expenditures related to the use of program income were not reported in fiscal year 2011 Schedule of <br /> Expenditures of Federal Awards (SEFA). The City did not include $99,879 in prior year's schedule. <br /> Cause: <br /> The City was not aware of this requirement. <br /> Questioned Costs: <br /> Not applicable. <br /> Context and Effect: <br /> The Schedule of Expenditure of Federal Awards may be incomplete and the City may not be complying <br /> with the requirements under OMB Circular A -133. <br /> Recommendation: <br /> We recommend that the City formalize a written grant reporting process to be communicated to all <br /> departments, whereby the department head or other designated personnel maintain a list of all grant <br /> awards used /obtained during the fiscal year by that department. Each department should provide this <br /> information to the finance department on an annual basis prior to the preparation of the schedule of <br /> expenditures of federal awards. <br /> Management Response: <br /> The City of Redwood City has been recording the CDBG grants and program income following the same <br /> Federal grants administrative requirement every fiscal year. During prior fiscal years, the City was not <br /> aware of the requirement to report expenditures related to the use of program income. Management <br /> is now aware of this requirement and will begin to report the program income related expenditures on the <br /> Schedule of Expenditures of Federal Award starting in fiscal year 2012. <br /> 14 <br />