Finding Text
The Municipality lacks adequate internal controls over federal awards, as evidenced by (1) improper records retention practices, (2) an absence of documented policies and procedures for retaining financial and programmatic records, and (3) the lack of a formal, written procurement policy to ensure compliance with federal regulations. Our review found instances where documentation supporting expenditures and program activities were missing or incomplete, indicating a lack of adherence to federal records retention requirements. This is the first audit in which a similar audit comment has occurred.