Finding 1138524 (2024-004)

2024-004 Uniform Guidance written policies and procedures Condition: During our audit, we discovered the City did not develop written procedures as required by the Uniform Guidance for the following: • Determination of Allowable Costs - §200.302(b)(7) • Time and Effort - §200.430(a) • Cash Management of Federal Funds - §200.302(b)(6) • Conflict of Interest - §200.318(c)(1-2) The City must also ensure that existing written procedures are in compliance with: • General Procurement Standards - §200.318-.326 • Equipment Management Requirements - §200.313 Criteria: The City “must” establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Commission is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The City did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The City is out of compliance with this requirement. Recommendation: The City should implement written policies and procedures to adhere to the above Uniform Guidance requirements. Management Response: The City will establish written policies and procedures to ensure future compliance with the Uniform Guidance requirements.