Audit 9302

AL# 11.300 Investments for Public Works & Economic Develpment - Written Policies Required by the Uniform Guidance (repeated from prior year)Material Weakness in Internal Control over Compliance Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to allowability of costs charged to federal programs, cash management, financial management, procurement, compensation/payroll, and travel costs (§200.300 - 328). Condition: Although the City has processes in place to cover these areas, the City lacks formal written policies covering these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the City did not fully comply with the Uniform Guidance applicable to the above noted grants. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the City ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year 2024. View of Responsible Officials: We agree with the finding. The City is currently working on updating all current procedures and policies to ensure that they are compliant with Uniform Guidance for all current and future Federal Awards.

AL# 11.300 Investments for Public Works & Economic Develpment - Other Tests and Provisions Compliance Other Matters Criteria: The City is required to erect and maintain in good condition and repair a sign or signs in accordance with EDA specifications. Prior to on-site construction, a reproducible photograph of the sign must be submitted to EDA along with evidence that the sign is located at the project site. Condition: During our inquiry of grant specific conditions the City was not able to readily produce a photograph of a sign at the site of the project. Additionally, the City did not have a sign erected at a second project site. Cause: This condition appears to be the result of a lack of administrative oversight. Effect: As a result of this condition, the City did not fully comply with the grant specific conditions of a major federal program/award. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the City ensures a sign is erected at both project sites and photographs are retained in the project files. View of Responsible Officials: We agree with the finding. The City, immediately after auditor inquiry, took a photograph of the erected sign and will retain it in the project file. Additionally, the City has provided a copy of the photograph to the Economic Development Administration.

AL# 11.300 Investments for Public Works & Economic Develpment - Written Policies Required by the Uniform Guidance (repeated from prior year)Material Weakness in Internal Control over Compliance Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to allowability of costs charged to federal programs, cash management, financial management, procurement, compensation/payroll, and travel costs (§200.300 - 328). Condition: Although the City has processes in place to cover these areas, the City lacks formal written policies covering these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the City did not fully comply with the Uniform Guidance applicable to the above noted grants. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the City ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year 2024. View of Responsible Officials: We agree with the finding. The City is currently working on updating all current procedures and policies to ensure that they are compliant with Uniform Guidance for all current and future Federal Awards.

AL# 11.300 Investments for Public Works & Economic Develpment - Other Tests and Provisions Compliance Other Matters Criteria: The City is required to erect and maintain in good condition and repair a sign or signs in accordance with EDA specifications. Prior to on-site construction, a reproducible photograph of the sign must be submitted to EDA along with evidence that the sign is located at the project site. Condition: During our inquiry of grant specific conditions the City was not able to readily produce a photograph of a sign at the site of the project. Additionally, the City did not have a sign erected at a second project site. Cause: This condition appears to be the result of a lack of administrative oversight. Effect: As a result of this condition, the City did not fully comply with the grant specific conditions of a major federal program/award. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the City ensures a sign is erected at both project sites and photographs are retained in the project files. View of Responsible Officials: We agree with the finding. The City, immediately after auditor inquiry, took a photograph of the erected sign and will retain it in the project file. Additionally, the City has provided a copy of the photograph to the Economic Development Administration.