Audit 365664

Department of Treasury Federal Financial Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal accounting control contemplates an adequate system for ensuring that all reports are completed accurately by the City. Condition – During the course of our engagement, we noted that the annual project and expenditure report submitted for the year ended December 31, 2024, had amounts reported that did not agree to the general ledger system of the City. Cause – The City does not have an internal control system designed to ensure that the project and expenditure report is submitted accurately. Effect – The control deficiency could result in the City’s project and expenditure report is not being completed accurately. Questioned Costs – None reported Context/Sampling – The entirety of the annual reporting requirement was tested. Repeat Finding from Prior Years – Yes Recommendation – Management should put procedures in place to ensure that all quarterly construction reports are accurate and submitted by the required due dates. View of responsible officials – Management is in agreement with the finding.

Department of Treasury Federal Financial Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance and Immaterial Instance of Noncompliance Criteria – Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required. Condition – In our testing of procurement, suspension and debarment it was identified that the City did not have a written policy on procurement that satisfied the requirements of 2 CFR sections 200.318 through 200.326. Cause – Lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections and controls were not adequately designed to ensure compliance with all of these requirements. Effect – A lack of documented policies increase the overall risk that employees are not aware of the specific requirements with contracting and awarding contracts to lower tier entities. Questioned Costs – None reported Context/Sampling – All vendors, which totaled one, were selected for procurement testing. Repeat Finding from Prior Years – Yes Recommendation – Management should establish a written policy that addresses all of the procurement requirements for federal programs as identified in 2 CFR sections 200.318 through 200.326 and maintain adequate supporting documentation and records to document history and methods of procurement and the procedures performed to comply with these CFR sections. View of responsible officials – Management is in agreement with the finding.

Department of Treasury Federal Financial Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria – A good system of internal accounting control contemplates an adequate system for ensuring that all reports are completed accurately by the City. Condition – During the course of our engagement, we noted that the annual project and expenditure report submitted for the year ended December 31, 2024, had amounts reported that did not agree to the general ledger system of the City. Cause – The City does not have an internal control system designed to ensure that the project and expenditure report is submitted accurately. Effect – The control deficiency could result in the City’s project and expenditure report is not being completed accurately. Questioned Costs – None reported Context/Sampling – The entirety of the annual reporting requirement was tested. Repeat Finding from Prior Years – Yes Recommendation – Management should put procedures in place to ensure that all quarterly construction reports are accurate and submitted by the required due dates. View of responsible officials – Management is in agreement with the finding.

Department of Treasury Federal Financial Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance and Immaterial Instance of Noncompliance Criteria – Uniform Guidance and 2 CFR sections 200.318 through 200.326 set forth the procurement standards non-federal entities other than states must follow when operating federal programs and the procurement procedures required. Condition – In our testing of procurement, suspension and debarment it was identified that the City did not have a written policy on procurement that satisfied the requirements of 2 CFR sections 200.318 through 200.326. Cause – Lack of oversight, awareness, or understanding of all of the specific requirements under the Uniform Guidance and applicable CFR sections and controls were not adequately designed to ensure compliance with all of these requirements. Effect – A lack of documented policies increase the overall risk that employees are not aware of the specific requirements with contracting and awarding contracts to lower tier entities. Questioned Costs – None reported Context/Sampling – All vendors, which totaled one, were selected for procurement testing. Repeat Finding from Prior Years – Yes Recommendation – Management should establish a written policy that addresses all of the procurement requirements for federal programs as identified in 2 CFR sections 200.318 through 200.326 and maintain adequate supporting documentation and records to document history and methods of procurement and the procedures performed to comply with these CFR sections. View of responsible officials – Management is in agreement with the finding.