Finding Text
2024-002 Compliance – Control Activities - Reporting Criteria: OMB’s Uniform Guidance 2 CFR 200.512(a) requires a Data Collection form to be filed the earlier of 30 days after receipt of the Single Audit Report of nine months after year-end for those entities expending more than $750,000 of federal funds. Condition: The City of Rose City, Texas did not file the required Data Collection form within the required time period. Cause: Due to catastrophic damage to City services, including infrastructure, caused by back-to-back year Hurricanes, the City of Rose City, Texas was unable to submit the Data Collection form timely and was not in compliance with reporting requirements. Effect: The noncompliance with compliance attributes required under the Uniform Guidance 2 CFR 200 may affect the City of Rose City, Texas’s current grant contracts and the opportunity to qualify for future grants. Recommendation: The City of Rose City, Texas’s governance should adopt and management should implement internal controls over oversight, monitoring and reporting to ensure compliance requirements as per OMB Uniform Guidance 2 CFR 200.