Finding Text
Federal Program: U.S. Department of Transportation passed through Missouri Department of Transportation: Airport Improvement Grant (20.106). Criteria: Uniform Guidance requires policies and procedures related to cash management, cost allowability, procurement, and conflict of interest provisions, along with appropriate financial management systems and internal controls over federal award to safeguard federal funds. Condition: The City did not have written policies and procedures over any of the components of grant management. Cause: The City was not aware of this requirement. Effect: There were no written policies in place to provide guidance on the administration of federal funds. Questioned Costs: None. Context: Total federal grants expended during the fiscal year ended March 31, 2024 was $4,390,459. Repeat Finding: No. Recommendation: We recommend the City develop written policies and procedures related to cash management, cost allowability, procurement, and conflict of interest provisions for federal funds it receives. Views of Responsible Officials: We understand the audit finding. In light of this finding, the City will work with our accountants and attorney to develop the appropriate policies and procedures and present those to the Board of Aldermen for adoption.