FAC Explorer

Audit 322595

FY End
2023-12-31
Total Expended
$28.04M
Findings
12
Programs
14
Organization: City of Kenosha (WI)
Year: 2023 Accepted: 2024-09-30
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499766 2023-003 Significant Deficiency - I
499767 2023-003 Significant Deficiency - I
499768 2023-003 Significant Deficiency - I
499769 2023-003 Significant Deficiency - I
499770 2023-003 Significant Deficiency - I
499771 2023-003 Significant Deficiency - I
1076208 2023-003 Significant Deficiency - I
1076209 2023-003 Significant Deficiency - I
1076210 2023-003 Significant Deficiency - I
1076211 2023-003 Significant Deficiency - I
1076212 2023-003 Significant Deficiency - I
1076213 2023-003 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $2.43M - 0
20.507 Federal Transit Formula Grants $392,480 - 0
21.019 Coronavirus Relief Fund $148,000 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $139,380 - 0
14.218 Community Development Block Grants/entitlement Grants $119,017 - 0
20.525 State of Good Repair Grants Program $77,859 - 0
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $35,376 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $33,282 Yes 1
16.738 Edward Byrne Memorial Justice Assistance Grant Program $22,288 - 0
32.009 Emergency Connectivity Fund Program $21,600 - 0
45.024 Promotion of the Arts Grants to Organizations and Individuals $20,000 - 0
45.310 Grants to States $6,714 - 0
20.600 State and Community Highway Safety $3,853 - 0
20.616 National Priority Safety Programs $3,648 - 0

Contacts

Name Title Type
SYQJU4U17UL4 Sue Clouthier Auditee
2626534195 Shannon D. Small Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accounting records for the grant programs are maintained on the modified accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The City has not elected to apply the 10% de minimis cost rate to awards for the year ended December 31, 2023. The schedules of expenditures of federal and state awards (the Schedules) includes all of the funds of the City of Kenosha, Wisconsin (the City). The reporting entity for the City is based upon criteria established by the Governmental Accounting Standards Board. The Housing Authority is audited separately, in accordance with Government Auditing Standards, Uniform Guidance, and the Wisconsin State Single Audit Guidelines. A separate report on federal and state awards is prepared for the Housing Authority and, accordingly, those federal and state funds are not included in this report. State programs reported include only those programs required to be included by the State Single Audit Guidelines.
Title: Federally Funded Loan Programs Accounting Policies: The accounting records for the grant programs are maintained on the modified accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The City has not elected to apply the 10% de minimis cost rate to awards for the year ended December 31, 2023. Loan balances of federally funded loan programs at December 31, 2023 included the following:

Finding Details

Finding 2023-003
Federal Agencies: United State Department of the Treasury Federal Program Name: Coronavirus State & Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Numbers and Year: None; SLFRP0135-2021; SLFRP135-2021; SLFRP0132132-2023 Award Periods: March 3, 2021 – December 31, 2026; March 3, 2021 – December 31, 2024; December 14, 2021 – June 30, 2025; January 1, 2023 – December 31, 2023 Type of finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 1 of the 7 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect at the beginning of the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, prior to updating it’s written procurement policy. The procurement policy was updated during the year under audit to align with the thresholds identified in the Federal requirements. Cause: The City did not review and update the procurement policy in effect prior to the adoption of the updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-003
Federal Agencies: United State Department of the Treasury Federal Program Name: Coronavirus State & Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Numbers and Year: None; SLFRP0135-2021; SLFRP135-2021; SLFRP0132132-2023 Award Periods: March 3, 2021 – December 31, 2026; March 3, 2021 – December 31, 2024; December 14, 2021 – June 30, 2025; January 1, 2023 – December 31, 2023 Type of finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 1 of the 7 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect at the beginning of the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, prior to updating it’s written procurement policy. The procurement policy was updated during the year under audit to align with the thresholds identified in the Federal requirements. Cause: The City did not review and update the procurement policy in effect prior to the adoption of the updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-003
Federal Agencies: United State Department of the Treasury Federal Program Name: Coronavirus State & Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Numbers and Year: None; SLFRP0135-2021; SLFRP135-2021; SLFRP0132132-2023 Award Periods: March 3, 2021 – December 31, 2026; March 3, 2021 – December 31, 2024; December 14, 2021 – June 30, 2025; January 1, 2023 – December 31, 2023 Type of finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 1 of the 7 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect at the beginning of the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, prior to updating it’s written procurement policy. The procurement policy was updated during the year under audit to align with the thresholds identified in the Federal requirements. Cause: The City did not review and update the procurement policy in effect prior to the adoption of the updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-003
Federal Agencies: United State Department of the Treasury Federal Program Name: Coronavirus State & Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Numbers and Year: None; SLFRP0135-2021; SLFRP135-2021; SLFRP0132132-2023 Award Periods: March 3, 2021 – December 31, 2026; March 3, 2021 – December 31, 2024; December 14, 2021 – June 30, 2025; January 1, 2023 – December 31, 2023 Type of finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 1 of the 7 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect at the beginning of the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, prior to updating it’s written procurement policy. The procurement policy was updated during the year under audit to align with the thresholds identified in the Federal requirements. Cause: The City did not review and update the procurement policy in effect prior to the adoption of the updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-003
Federal Agencies: United State Department of the Treasury Federal Program Name: Coronavirus State & Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Numbers and Year: None; SLFRP0135-2021; SLFRP135-2021; SLFRP0132132-2023 Award Periods: March 3, 2021 – December 31, 2026; March 3, 2021 – December 31, 2024; December 14, 2021 – June 30, 2025; January 1, 2023 – December 31, 2023 Type of finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 1 of the 7 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect at the beginning of the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, prior to updating it’s written procurement policy. The procurement policy was updated during the year under audit to align with the thresholds identified in the Federal requirements. Cause: The City did not review and update the procurement policy in effect prior to the adoption of the updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-003
Federal Agencies: United State Department of the Treasury Federal Program Name: Coronavirus State & Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Numbers and Year: None; SLFRP0135-2021; SLFRP135-2021; SLFRP0132132-2023 Award Periods: March 3, 2021 – December 31, 2026; March 3, 2021 – December 31, 2024; December 14, 2021 – June 30, 2025; January 1, 2023 – December 31, 2023 Type of finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 1 of the 7 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect at the beginning of the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, prior to updating it’s written procurement policy. The procurement policy was updated during the year under audit to align with the thresholds identified in the Federal requirements. Cause: The City did not review and update the procurement policy in effect prior to the adoption of the updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-003
Federal Agencies: United State Department of the Treasury Federal Program Name: Coronavirus State & Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Numbers and Year: None; SLFRP0135-2021; SLFRP135-2021; SLFRP0132132-2023 Award Periods: March 3, 2021 – December 31, 2026; March 3, 2021 – December 31, 2024; December 14, 2021 – June 30, 2025; January 1, 2023 – December 31, 2023 Type of finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 1 of the 7 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect at the beginning of the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, prior to updating it’s written procurement policy. The procurement policy was updated during the year under audit to align with the thresholds identified in the Federal requirements. Cause: The City did not review and update the procurement policy in effect prior to the adoption of the updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-003
Federal Agencies: United State Department of the Treasury Federal Program Name: Coronavirus State & Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Numbers and Year: None; SLFRP0135-2021; SLFRP135-2021; SLFRP0132132-2023 Award Periods: March 3, 2021 – December 31, 2026; March 3, 2021 – December 31, 2024; December 14, 2021 – June 30, 2025; January 1, 2023 – December 31, 2023 Type of finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 1 of the 7 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect at the beginning of the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, prior to updating it’s written procurement policy. The procurement policy was updated during the year under audit to align with the thresholds identified in the Federal requirements. Cause: The City did not review and update the procurement policy in effect prior to the adoption of the updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-003
Federal Agencies: United State Department of the Treasury Federal Program Name: Coronavirus State & Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Numbers and Year: None; SLFRP0135-2021; SLFRP135-2021; SLFRP0132132-2023 Award Periods: March 3, 2021 – December 31, 2026; March 3, 2021 – December 31, 2024; December 14, 2021 – June 30, 2025; January 1, 2023 – December 31, 2023 Type of finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 1 of the 7 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect at the beginning of the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, prior to updating it’s written procurement policy. The procurement policy was updated during the year under audit to align with the thresholds identified in the Federal requirements. Cause: The City did not review and update the procurement policy in effect prior to the adoption of the updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-003
Federal Agencies: United State Department of the Treasury Federal Program Name: Coronavirus State & Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Numbers and Year: None; SLFRP0135-2021; SLFRP135-2021; SLFRP0132132-2023 Award Periods: March 3, 2021 – December 31, 2026; March 3, 2021 – December 31, 2024; December 14, 2021 – June 30, 2025; January 1, 2023 – December 31, 2023 Type of finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 1 of the 7 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect at the beginning of the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, prior to updating it’s written procurement policy. The procurement policy was updated during the year under audit to align with the thresholds identified in the Federal requirements. Cause: The City did not review and update the procurement policy in effect prior to the adoption of the updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-003
Federal Agencies: United State Department of the Treasury Federal Program Name: Coronavirus State & Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Numbers and Year: None; SLFRP0135-2021; SLFRP135-2021; SLFRP0132132-2023 Award Periods: March 3, 2021 – December 31, 2026; March 3, 2021 – December 31, 2024; December 14, 2021 – June 30, 2025; January 1, 2023 – December 31, 2023 Type of finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 1 of the 7 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect at the beginning of the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, prior to updating it’s written procurement policy. The procurement policy was updated during the year under audit to align with the thresholds identified in the Federal requirements. Cause: The City did not review and update the procurement policy in effect prior to the adoption of the updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-003
Federal Agencies: United State Department of the Treasury Federal Program Name: Coronavirus State & Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Numbers and Year: None; SLFRP0135-2021; SLFRP135-2021; SLFRP0132132-2023 Award Periods: March 3, 2021 – December 31, 2026; March 3, 2021 – December 31, 2024; December 14, 2021 – June 30, 2025; January 1, 2023 – December 31, 2023 Type of finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The City should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted 1 of the 7 procurement transactions selected for testing as part of statistically valid sample, did not follow the City's procurement policy related to documentation of vendor selection criteria for small purchases. The City applied the requirements of micro-purchases to these transactions. Questioned costs: None Context: The City's procurement policy in effect at the beginning of the year under audit identified an outdated micro-purchases threshold. The City adopted in practice the updated micro-purchase threshold identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award, prior to updating it’s written procurement policy. The procurement policy was updated during the year under audit to align with the thresholds identified in the Federal requirements. Cause: The City did not review and update the procurement policy in effect prior to the adoption of the updated threshold identified in the most current Uniform Guidance requirements. Effect: The auditor noted no instances of noncompliance with the provisions of procurement, suspension, and debarment; however, the lack of consistent internal control policies over these compliance requirements provides an opportunity for noncompliance. Repeat finding: The finding is not a repeat of a finding. Recommendation: We recommend the City design controls to ensure an adequate review, and update as necessary, of policies occurs when changes in practice or regulation occur. Views of responsible officials: There is no disagreement with the audit finding.