Audit 365798

2024-004 - Allowable Cost/Cost Principles Federal Program Information: Department of Treasury - State & Local Fiscal Recovery Fund ALN - 21.027 - State & Local Fiscal Recovery Fund Criteria: The following CFR(s) apply to this finding: 2 CFR §200.303 Condition: During our testing of 9 disbursements under the State & Local Fiscal Recovery Funds, we noted that 4 disbursements totaling $460,844 were approved without following the City’s documented internal control procedures. Specifically, the City’s policy requires documenting the approval of invoices, but this process was not followed for the identified transactions. Cause: The control lapse occurred because there was turnover in key positions. Effect: By not following its own internal control procedures, the City increased the risk of unallowable or unsupported costs being charged to the program. Although we did not identify any unallowable costs in the items tested, the absence of proper approvals diminishes assurance that expenses are appropriate and compliant. Identification of Questioned Costs: None identified. Context: The entire population of 12 months of reimbursements from the fiscal year were examined which is a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the City implement internal control processes and procedures to ensure that all invoices are approved per the City’s policy. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the City.

2024-004 - Allowable Cost/Cost Principles Federal Program Information: Department of Treasury - State & Local Fiscal Recovery Fund ALN - 21.027 - State & Local Fiscal Recovery Fund Criteria: The following CFR(s) apply to this finding: 2 CFR §200.303 Condition: During our testing of 9 disbursements under the State & Local Fiscal Recovery Funds, we noted that 4 disbursements totaling $460,844 were approved without following the City’s documented internal control procedures. Specifically, the City’s policy requires documenting the approval of invoices, but this process was not followed for the identified transactions. Cause: The control lapse occurred because there was turnover in key positions. Effect: By not following its own internal control procedures, the City increased the risk of unallowable or unsupported costs being charged to the program. Although we did not identify any unallowable costs in the items tested, the absence of proper approvals diminishes assurance that expenses are appropriate and compliant. Identification of Questioned Costs: None identified. Context: The entire population of 12 months of reimbursements from the fiscal year were examined which is a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the City implement internal control processes and procedures to ensure that all invoices are approved per the City’s policy. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the City.

2024-004 - Allowable Cost/Cost Principles Federal Program Information: Department of Treasury - State & Local Fiscal Recovery Fund ALN - 21.027 - State & Local Fiscal Recovery Fund Criteria: The following CFR(s) apply to this finding: 2 CFR §200.303 Condition: During our testing of 9 disbursements under the State & Local Fiscal Recovery Funds, we noted that 4 disbursements totaling $460,844 were approved without following the City’s documented internal control procedures. Specifically, the City’s policy requires documenting the approval of invoices, but this process was not followed for the identified transactions. Cause: The control lapse occurred because there was turnover in key positions. Effect: By not following its own internal control procedures, the City increased the risk of unallowable or unsupported costs being charged to the program. Although we did not identify any unallowable costs in the items tested, the absence of proper approvals diminishes assurance that expenses are appropriate and compliant. Identification of Questioned Costs: None identified. Context: The entire population of 12 months of reimbursements from the fiscal year were examined which is a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the City implement internal control processes and procedures to ensure that all invoices are approved per the City’s policy. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the City.

2024-005 - Procurement and Suspension and Debarment Federal Program Information: Department of Treasury - State & Local Fiscal Recovery Fund ALN - 21.027 - State & Local Fiscal Recovery Fund Criteria: The following CFR(s) apply to this finding: 2 CFR §200.318(a) Condition: During our testing we reviewed the procurement policy for the City and identified multiple provisions required were not included in the policy. Cause: The control lapse occurred because there was turnover in key positions and the policy has not been reviewed. Effect: Procurement activities conducted under this incomplete policy may not adhere to required federal standards, increasing the risk of noncompliance, unallowable costs or procurement practices that do not ensure fair and open competition. Identification of Questioned Costs: None identified. Context: The procurement policy in effect during the fiscal year was reviewed which is not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City revise its procurement policy to fully incorporate all elements required by 2 CFR §200.317-200.327. Additionally, we suggest the City implement a regular policy review process to ensure continued compliance with federal regulations. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the City.

2024-005 - Procurement and Suspension and Debarment Federal Program Information: Department of Treasury - State & Local Fiscal Recovery Fund ALN - 21.027 - State & Local Fiscal Recovery Fund Criteria: The following CFR(s) apply to this finding: 2 CFR §200.318(a) Condition: During our testing we reviewed the procurement policy for the City and identified multiple provisions required were not included in the policy. Cause: The control lapse occurred because there was turnover in key positions and the policy has not been reviewed. Effect: Procurement activities conducted under this incomplete policy may not adhere to required federal standards, increasing the risk of noncompliance, unallowable costs or procurement practices that do not ensure fair and open competition. Identification of Questioned Costs: None identified. Context: The procurement policy in effect during the fiscal year was reviewed which is not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City revise its procurement policy to fully incorporate all elements required by 2 CFR §200.317-200.327. Additionally, we suggest the City implement a regular policy review process to ensure continued compliance with federal regulations. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the City.

2024-005 - Procurement and Suspension and Debarment Federal Program Information: Department of Treasury - State & Local Fiscal Recovery Fund ALN - 21.027 - State & Local Fiscal Recovery Fund Criteria: The following CFR(s) apply to this finding: 2 CFR §200.318(a) Condition: During our testing we reviewed the procurement policy for the City and identified multiple provisions required were not included in the policy. Cause: The control lapse occurred because there was turnover in key positions and the policy has not been reviewed. Effect: Procurement activities conducted under this incomplete policy may not adhere to required federal standards, increasing the risk of noncompliance, unallowable costs or procurement practices that do not ensure fair and open competition. Identification of Questioned Costs: None identified. Context: The procurement policy in effect during the fiscal year was reviewed which is not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City revise its procurement policy to fully incorporate all elements required by 2 CFR §200.317-200.327. Additionally, we suggest the City implement a regular policy review process to ensure continued compliance with federal regulations. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the City.

2024-004 - Allowable Cost/Cost Principles Federal Program Information: Department of Treasury - State & Local Fiscal Recovery Fund ALN - 21.027 - State & Local Fiscal Recovery Fund Criteria: The following CFR(s) apply to this finding: 2 CFR §200.303 Condition: During our testing of 9 disbursements under the State & Local Fiscal Recovery Funds, we noted that 4 disbursements totaling $460,844 were approved without following the City’s documented internal control procedures. Specifically, the City’s policy requires documenting the approval of invoices, but this process was not followed for the identified transactions. Cause: The control lapse occurred because there was turnover in key positions. Effect: By not following its own internal control procedures, the City increased the risk of unallowable or unsupported costs being charged to the program. Although we did not identify any unallowable costs in the items tested, the absence of proper approvals diminishes assurance that expenses are appropriate and compliant. Identification of Questioned Costs: None identified. Context: The entire population of 12 months of reimbursements from the fiscal year were examined which is a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the City implement internal control processes and procedures to ensure that all invoices are approved per the City’s policy. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the City.

2024-004 - Allowable Cost/Cost Principles Federal Program Information: Department of Treasury - State & Local Fiscal Recovery Fund ALN - 21.027 - State & Local Fiscal Recovery Fund Criteria: The following CFR(s) apply to this finding: 2 CFR §200.303 Condition: During our testing of 9 disbursements under the State & Local Fiscal Recovery Funds, we noted that 4 disbursements totaling $460,844 were approved without following the City’s documented internal control procedures. Specifically, the City’s policy requires documenting the approval of invoices, but this process was not followed for the identified transactions. Cause: The control lapse occurred because there was turnover in key positions. Effect: By not following its own internal control procedures, the City increased the risk of unallowable or unsupported costs being charged to the program. Although we did not identify any unallowable costs in the items tested, the absence of proper approvals diminishes assurance that expenses are appropriate and compliant. Identification of Questioned Costs: None identified. Context: The entire population of 12 months of reimbursements from the fiscal year were examined which is a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the City implement internal control processes and procedures to ensure that all invoices are approved per the City’s policy. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the City.

2024-004 - Allowable Cost/Cost Principles Federal Program Information: Department of Treasury - State & Local Fiscal Recovery Fund ALN - 21.027 - State & Local Fiscal Recovery Fund Criteria: The following CFR(s) apply to this finding: 2 CFR §200.303 Condition: During our testing of 9 disbursements under the State & Local Fiscal Recovery Funds, we noted that 4 disbursements totaling $460,844 were approved without following the City’s documented internal control procedures. Specifically, the City’s policy requires documenting the approval of invoices, but this process was not followed for the identified transactions. Cause: The control lapse occurred because there was turnover in key positions. Effect: By not following its own internal control procedures, the City increased the risk of unallowable or unsupported costs being charged to the program. Although we did not identify any unallowable costs in the items tested, the absence of proper approvals diminishes assurance that expenses are appropriate and compliant. Identification of Questioned Costs: None identified. Context: The entire population of 12 months of reimbursements from the fiscal year were examined which is a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the City implement internal control processes and procedures to ensure that all invoices are approved per the City’s policy. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the City.

2024-005 - Procurement and Suspension and Debarment Federal Program Information: Department of Treasury - State & Local Fiscal Recovery Fund ALN - 21.027 - State & Local Fiscal Recovery Fund Criteria: The following CFR(s) apply to this finding: 2 CFR §200.318(a) Condition: During our testing we reviewed the procurement policy for the City and identified multiple provisions required were not included in the policy. Cause: The control lapse occurred because there was turnover in key positions and the policy has not been reviewed. Effect: Procurement activities conducted under this incomplete policy may not adhere to required federal standards, increasing the risk of noncompliance, unallowable costs or procurement practices that do not ensure fair and open competition. Identification of Questioned Costs: None identified. Context: The procurement policy in effect during the fiscal year was reviewed which is not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City revise its procurement policy to fully incorporate all elements required by 2 CFR §200.317-200.327. Additionally, we suggest the City implement a regular policy review process to ensure continued compliance with federal regulations. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the City.

2024-005 - Procurement and Suspension and Debarment Federal Program Information: Department of Treasury - State & Local Fiscal Recovery Fund ALN - 21.027 - State & Local Fiscal Recovery Fund Criteria: The following CFR(s) apply to this finding: 2 CFR §200.318(a) Condition: During our testing we reviewed the procurement policy for the City and identified multiple provisions required were not included in the policy. Cause: The control lapse occurred because there was turnover in key positions and the policy has not been reviewed. Effect: Procurement activities conducted under this incomplete policy may not adhere to required federal standards, increasing the risk of noncompliance, unallowable costs or procurement practices that do not ensure fair and open competition. Identification of Questioned Costs: None identified. Context: The procurement policy in effect during the fiscal year was reviewed which is not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City revise its procurement policy to fully incorporate all elements required by 2 CFR §200.317-200.327. Additionally, we suggest the City implement a regular policy review process to ensure continued compliance with federal regulations. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the City.

2024-005 - Procurement and Suspension and Debarment Federal Program Information: Department of Treasury - State & Local Fiscal Recovery Fund ALN - 21.027 - State & Local Fiscal Recovery Fund Criteria: The following CFR(s) apply to this finding: 2 CFR §200.318(a) Condition: During our testing we reviewed the procurement policy for the City and identified multiple provisions required were not included in the policy. Cause: The control lapse occurred because there was turnover in key positions and the policy has not been reviewed. Effect: Procurement activities conducted under this incomplete policy may not adhere to required federal standards, increasing the risk of noncompliance, unallowable costs or procurement practices that do not ensure fair and open competition. Identification of Questioned Costs: None identified. Context: The procurement policy in effect during the fiscal year was reviewed which is not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the City revise its procurement policy to fully incorporate all elements required by 2 CFR §200.317-200.327. Additionally, we suggest the City implement a regular policy review process to ensure continued compliance with federal regulations. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the City.