CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE
City of Longview
January 1, 2023 through December 31, 2023
This schedule presents the corrective action the City is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (...
CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE
City of Longview
January 1, 2023 through December 31, 2023
This schedule presents the corrective action the City is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Finding ref number:
2023-002
Finding caption:
The City overcharged costs to the federal program and had inadequate internal controls for ensuring compliance with federal equipment and suspension and debarment requirements.
Name, address, and telephone of City contact person:
Jim Seeks
Transit Manager
P.O. Box 128, Longview, WA 98632-7080
360-442-5607
Corrective action the auditee plans to take in response to the finding:
First, the SAO recommended that City ensure it claims only allowable costs for reimbursement and that the claims do not include costs it previously submitted. The City should work with the granting agency to determine audit resolution for the questioned costs.
This recommendation is being addressed follows:
1. The Transit Manager is drafting a procedure for checking, line-by-line, that the expenses from one quarter, and particularly one state biennium, are not carried over into the next, and
2. In agreement with the WSDOT Public Transportation Office, the claim for the quarter ending June 30, 2024, was reduced by the amount overbilled.
Additionally, the SAO recommended the City establish internal controls to ensure it complies with federal requirements for equipment management and suspension and debarment. Specifically, that the City should:
• Update property inventory records to contain all required elements to track equipment it purchased with federal funds
• Ensure it conducts a physical inventory once every two years
• Ensure all contractors it pays $25,000 or more, all or in part with federal funds, are not suspended or debarred from participating in federal programs before contracting with or purchasing from them
This recommendation is being addressed as follows:
1. The property inventory record has been updated to include all elements whether the equipment was purchased with federal and/or state funds.
2. The annual physical inventory will be coordinated with the Fleet and Facilities Manager and the Accounting Manager to ensure all property is checked and accounted for, including equipment designated as surplus that may be stored elsewhere than the City Shop.
3. Researching the federal System for Award Management (SAM) website is covered in Section 12-101 of the RiverCities Transit Procurement Policy, which includes the form titled BIDS, RFPS AND RFQS DOCUMENTATION REQUIRED. This form will be used for all procurements greater than the Micro-Purchase (<$10,000) level and become part of the procurement/vendor file.
Transit management is open to any other recommendations from SAO to ensure proper controls over federal and state funds.
Anticipated date to complete the corrective action: 8/25/2024