Finding Text
Assistance Listing, Federal Agency, and Program Name - 15.507, WaterSMART Sustaining and Manage America’s Resources for Tomorrow
Federal Award Identification Number and Year - R22AP00523-00
Pass-through Entity - N/A
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding - No
Criteria - Per 2 CFR 200.303(a), a 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition - Controls in place were not adequate to ensure expenses were reported in the proper categories on the performance reports.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - N/A
Context - During reporting testing, we noted no expenses were reported in the federal expenses line item of the two reports tested.
Cause and Effect - While the City did have controls in place around reporting and allowability of expenses, they were not sufficient to ensure expenses were properly reported on the correct lines As a result, reports were not in compliance.
Recommendation - We recommend the City ensure the effectiveness of controls to ensure expenditures get reported properly.
Views of Responsible Officials and Corrective Action Plan - The City hired a full-time Grants Manager in February 2024 to establish procedures to track grants that are awarded and expended by the City. New procedures will be developed to ensure that financial and performance reports for grants will be reviewed by the Grants Manager prior to submission of the reports to the awarding entities. Documentation of this review will be retained with the grant documents.