FAC Explorer

Finding 1169660 (2025-004)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-01-20
Audit: 382683
Organization: The Water Works and Sewer Board of the City of Wetumpka (AL)
Auditor: BBCM PC

AI Summary

  • Core Issue: The Board's fiscal policies are not aligned with the required financial management system standards.
  • Impacted Requirements: Compliance with 2 CFR 200.302 is lacking, particularly in written procedures for payment methods and cost allowability.
  • Recommended Follow-Up: Develop a comprehensive grants manual to ensure all federal requirements are met and compliance is achieved.

Finding Text

Condition: The Board has written fiscal policies but they do not meet the financial management system requirements established in the regulations. Criteria: 2 CFR 200.302 establishes the requirements of a financial management system adequate to ensure compliance with federal regulations. This system must include written procedures to implement requirements for payment methods and determine the allowability of costs in accordance with subpart E. Cause and Effect: The Board has processes and procedures in place to administer grant funds but written policies do not contain compliance requirements. The Board is not in compliance with financial management system requirements. Recommendation: The Board should develop a grants manual or additional written policies to incorporate all the requirements of 2 CFR 200 and ensure compliance. Views of Management and Planned Corrective Action: See Corrective Action Plan included at the end of the report.

Corrective Action Plan

The Board agrees with this deficiency. However, the Board has not received Federal financial assistance in over 20 years that would require the Board to be subject to a Single Audit. The Board will internally develop written financial management system requirements or hire an outside grant writing manager to assist in developing written fiscal policies.

Categories

No categories assigned yet.

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.21M
66.458 CLEAN WATER STATE REVOLVING FUND $534,567