Audit 44284

Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Financial Assistance Listing Number: 21.027 Federal Agency: U.S. Department of Treasury Award Year: 2021/22 Grant Number: N/A Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control Criteria: 2 CFR Section 200.303(a), Internal Controls, states that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The City must submit an annual Project and Expenditure Report for this program. Condition: While the City prepared and had adequate supporting documentation for the Project and Expenditure Report, there was no documented evidence of review or approval prior to submission. Cause: The City prepared the Project and Expenditure Report and submitted without retaining evidence that the report was reviewed and approved by a separate individual prior to submission. Effect: Documentation was not available to support the review of the report prior to submission. Questioned Costs: None Context/Sampling: The entire population of one Project and Expenditure Report submitted during the year was selected for testing. Repeat Finding from Prior Year: No Recommendation: We recommend the City enhance internal controls to ensure supporting documentation, including evidence of review, is retained for the Project and Expenditure Report. Views of Responsible Official: Management agrees. See separately issued Corrective Action Plan.

Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Financial Assistance Listing Number: 21.027 Federal Agency: U.S. Department of Treasury Award Year: 2021/22 Grant Number: N/A Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency in Internal Control and Instance of Noncompliance Criteria: Title 2 CFR Section 200.302(b)(7) of the Uniform Guidance requires all non-Federal entities establish written procedures to implement the requirements for determining the allowability of costs in accordance with Subpart E ? Cost Principles and the conditions of the Federal award. Condition: The City has not established written procedures for determining allowability of costs in accordance with Subpart E ? Cost Principles or the conditions of the Federal award. Cause: The City?s procedures did not ensure the required written procedures were developed and implemented in accordance with the Uniform Guidance. Effect: The City has not complied with Title 2 CFR Section 200.302(b)(7) regarding establishing written procedures for determining the allowability of costs. Questioned Costs: None reported. Context: The condition noted above was identified during our procedures related to allowable costs. Repeat Finding from Prior Year: No Recommendation: We recommend the City establish policies and formalize written procedures related to allowable costs in accordance with Subpart E ? Cost Principles. Views of Responsible Official: Management agrees. See separately issued Corrective Action Plan.

Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Financial Assistance Listing Number: 21.027 Federal Agency: U.S. Department of Treasury Award Year: 2021/22 Grant Number: N/A Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control Criteria: 2 CFR Section 200.303(a), Internal Controls, states that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The City must submit an annual Project and Expenditure Report for this program. Condition: While the City prepared and had adequate supporting documentation for the Project and Expenditure Report, there was no documented evidence of review or approval prior to submission. Cause: The City prepared the Project and Expenditure Report and submitted without retaining evidence that the report was reviewed and approved by a separate individual prior to submission. Effect: Documentation was not available to support the review of the report prior to submission. Questioned Costs: None Context/Sampling: The entire population of one Project and Expenditure Report submitted during the year was selected for testing. Repeat Finding from Prior Year: No Recommendation: We recommend the City enhance internal controls to ensure supporting documentation, including evidence of review, is retained for the Project and Expenditure Report. Views of Responsible Official: Management agrees. See separately issued Corrective Action Plan.

Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Financial Assistance Listing Number: 21.027 Federal Agency: U.S. Department of Treasury Award Year: 2021/22 Grant Number: N/A Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency in Internal Control and Instance of Noncompliance Criteria: Title 2 CFR Section 200.302(b)(7) of the Uniform Guidance requires all non-Federal entities establish written procedures to implement the requirements for determining the allowability of costs in accordance with Subpart E ? Cost Principles and the conditions of the Federal award. Condition: The City has not established written procedures for determining allowability of costs in accordance with Subpart E ? Cost Principles or the conditions of the Federal award. Cause: The City?s procedures did not ensure the required written procedures were developed and implemented in accordance with the Uniform Guidance. Effect: The City has not complied with Title 2 CFR Section 200.302(b)(7) regarding establishing written procedures for determining the allowability of costs. Questioned Costs: None reported. Context: The condition noted above was identified during our procedures related to allowable costs. Repeat Finding from Prior Year: No Recommendation: We recommend the City establish policies and formalize written procedures related to allowable costs in accordance with Subpart E ? Cost Principles. Views of Responsible Official: Management agrees. See separately issued Corrective Action Plan.