Audit 415008

AL 66.458 Clean Water State Revolving Funds – Procurement, Suspension and Debarment – Significant Deficiency Criteria Recipients and subrecipients other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR 200.318 through 200.327. Condition During internal control inquire, we noted the City did not follow federal procurement requirements. The City also entered into a covered transaction without checking the vendor to ensure they did not have an active suspended or debarred exclusion from receiving federal funds. Cause Management oversight. Effect The City is not in compliance with federal procurement, suspension and debarment requirements. Questioned Costs None Recommendation We recommend that the City follow their procurement policy and the requirements of 2 CFR 200.318 and document the fulfillment of this requirement. Views of Responsible Officials and Planned Corrective Actions Project management staff has been made aware of this requirement and will document vendor checks for federal projects going forward. Repeat Finding: This is a repeat finding of prior year finding 2023-004.

AL 66.458 & AL 66.468 – Data Collection Form Reporting – Significant Deficiency Criteria The Uniform Guidance states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition The City did not submit the data collection form to the Federal Audit Clearinghouse within the required time frame. Cause The City’s general ledger accounts were not reconciled and the audit was not scheduled within the appropriate time frame. Effect The City was not in compliance with federal reporting requirements. Questioned Costs None Recommendation The annual audit should be completed within the timeframe allowed by Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions The City experienced turnover of accounting personnel in 2023, leaving the Finance Supervisor position vacant during 2024. This resulted in a delay of financial audit completions for 2023 and 2024. The 2025 audit has been scheduled. The City understands the importance of timely audits and plans to complete them annually going forward. Repeat Finding: This is a new finding in the current year.