Audit 403203

Assistance Listing, Federal Agency, and Program Name - 14.251, U.S. Department of Housing and Urban Development, Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Federal Award Identification Number and Year - B-24-CP-MI-1192 and B-22-CP-MI-0444 Pass-through Entity - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - The City must establish and maintain effective internal controls to ensure compliance with federal requirements including written procedures for processing of federal payments as outlined in 2 CFR 200.305. Condition - The City did not have established written cash management procedures for processing of federal payments. Questioned Costs - None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - During the year, the City received cash payments from federal sources and had no written procedures to ensure compliance with the requirements of federal payments. Although the written procedures were not established, there was no noncompliance identified with cash management requirements. Cause and Effect - The City did not have a control in place to ensure the required written cash management proecedures for processing federal payment are in place. Recommendation - Written procedures for processing of federal payments should be established, as required by 2 CFR 200.305. Views of Responsible Officials and Corrective Action Plan - The City will develop and implement written cash management procedures for processing federal payments.