Finding 1092498 (2024-004)

2024-004 Uniform Grant Guidance Implementation Federal Agency: Across all agencies Federal Program Name: Across all programs Federal Assistance Listing Number: Across all Federal Award Identification Number and Year: Across all Pass-Through Agency: Across all agencies Pass-Through Number(s): Across all Award Period: n/a Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Uniform Guidance requires the City to maintain certain policies related to cash management, cost allowability, procurement, and conflict of interest provisions, along with appropriate financial management systems and internal controls over federal awards to safeguard federal funds. Condition: The City has various policies and procedures in place to safeguard its assets and establish related controls over receipts, disbursements, payroll transactions and general ledger maintenance. Federal awards received and disbursed by the City are managed through these city-wide policies and procedures; however, the policies and procedures had not been evaluated to ensure compliance with the requirements of Uniform Guidance as of year-end. Questioned Costs: None noted Context: During our audit, the City did not have various written entity wide policies as required by the Uniform Guidance, or written grant level policies. Cause: The City has begun but not finalized an assessment of its financial management system and related internal controls over federal awards, along with an evaluation of existing policies for compliance with Uniform Guidance by year-end. Effect: The City could become noncompliant with requirement of Uniform Guidance, resulting in future findings and questioned costs related to federal awards administered by the City. Repeat Finding: No Recommendation: We recommend the City continue the process in assessing its financial management systems and related internal controls over federal awards during the 2025 fiscal year. This assessment should include evaluating existing policies and procedures to determine where additional enhancements should be made or new policies created, a plan to communicate these policies to City employees, and procedures to periodically review and update, as considered necessary. View of Responsible Officials There is no disagreement with the audit finding.