Finding 1159462 (2024-002)

Significant Deficiency Coronovirus State and Local Funds – Allowable Cost/Activity/Period of Performance 2024-002 Information on Federal Program: U.S. Department of Treasury (Federal Assistance Listing Number 21.027). Criteria: CFR Section 200.302 stipulates that a non-Federal entity must use its own written procedures for determining the allowability of costs in accordance with Supart E-Cost Principles of this part and the terms and conditions of the Federal award. Statement of Condition: During our discussions with management, we noted that the Organization does not have documented internal procedures in place. Statement of Cause: The Organization did not review compliance requirements related to allowable cost outlined in 2 CFR Section 200.302. Statement of Effect: The Organization is not in compliance with 2 CFR Section 200.302. The Organization does not have documented procedures and is therefore not performing required procedures that would be standard for all purchases charged to the program. Questioned Costs: None. Perspective Information: As part of the required allowable cost testing, inquiries are made of the Organization’s management as to any internal control policies that the Organization has. Recommendation: We recommend that the Organization review the requirements of 2 CFR Section 200.302 to develop internal control policies to be followed. Views of responsible officials and planned corrective actions: City of Aledo will develop and implement a internal control policy in accordance with CFR Section 200.302. We will have this in place as soon as possible.