Finding 1174004 (2025-001)

21-027 - Coronavirus State and Local Fiscal Recovery Funds Criteria 2 CFR Part 200.302(b)(7) requires the financial management system to include written procedures for determining the allowability of costs. Condition The City has not developed written procedures for determining the allowability of costs for departments outside of transit. Cause Administration did not have written procedures for determining the allowability of costs. Effect Unallowable costs could be charged to the program. Questioned Costs None Perspective Written procedures for determining the allowability of costs is integral to the proper design of internal controls. However, the results of audit procedures did not detect any unallowable costs charged to the program. Recommendations Management should develop written procedures as required by 2 CFR Part 200.302(b)(7) for all departments within the City. Views of Responsible Officials Management will incorporate written procedures for determining the allowability of costs into the City’s Financial Plan document, which already includes a section for City-wide policies related to grant administration.