Finding 1148958 (2024-002)

2024-002 - Reporting Federal Agency: U.S. Department of Homeland Security Federal Program/Cluster Title: Staffing for Adequate Fire and Emergency Response (SAFER) Assistance Listing Number: 97.083 Award Period: November 4, 2022 through November 3, 2025 Type of Finding: Significant Deficiency in Internal Control Over Compliance Condition: During our audit, we identified that the City did not establish adequate internal control over compliance with federal reporting requirements as mandated by Uniform Guidance. Criteria or Specific Requirement: Non-federal entities are required by Uniform Guidance to establish and maintain internal control over compliance with federal statutes, regulations, and the terms and conditions of the federal award. Context: We noted that 2 of 2 performance reports tested were not reviewed by a City employee other than the preparer prior to submission to the grantor. Effect: Lack of internal control over compliance could result in noncompliance with federal reporting requirements, potentially leading to penalties or loss of federal funding. Cause: Management informed us that no City employees reviewed the performance reports prior to submission to the grantor. Recommendation: We recommend that the City establish and maintain effective internal control over compliance with federal reporting requirements as mandated by Uniform Guidance. City employees involved with internal control over compliance should have a thorough understanding of Uniform Guidance and the applicable compliance requirements of the federal grant, as well as knowledge of the City's activities and operations. Views of Responsible Officials: The City’s Finance Department is working with the Fire Department to install the proper internal controls over the preparation of the performance reports. Going forward, the reports that are prepared by the City’s Fire Chief will be reviewed by the City’s Finance Department to ensure accuracy and compliance.