Finding Text
Information on the Federal Program(s):
10.760 Water and Waste Disposal Systems for Rural Communities, Department of Agriculture
14.228 Community Development Block Grants/State’s Program, Department of Housing and Urban Development
Compliance Requirements: Cash Management.
Type of Finding: Material Noncompliance.
Criteria: 2 CFR § 200.302(b)(6) requires that each non-Federal entity must provide for written procedures to implement the requirements of 2 CFR § 200.305 Payment.
Condition: We noted that the City did not have written procedures to implement the requirements of 2 CFR § 200.305 Payment during fiscal year 2022.
Cause: The City was not aware of the requirement to have written procedures to implement the requirements of 2 CFR § 200.305 Payment.
Effect: Failure to have written procedures to ensure the compliance with the 2 CFR § 200.305 Payment could result in federal award drawdown requests by the City to be overstated as to immediate cash flow needs, noncompliance with Uniform Guidance requirements, and terms and conditions of the Federal award.
Questioned Costs: There are no questioned costs.
Recommendation: We recommend that the City identify grants that are subject to the Uniform Guidance on a timely basis to ensure all compliance requirements are met and develop written procedures where required.
Views of Responsible Officials and Planned Corrective Action: The City has identified federal grants subject to the Uniform Guidance and will develop written procedures to implement the requirements of 2 CFR § 200.305 Payment.