Finding Text
Federal Program: Coronavirus State and Local Fiscal Recovery Funds (21.027). Criteria: Uniform Guidance requires policies related to cash management, cost allowability, procurement and conflict of interest provisions, along with appropriate financial management systems and internal controls over federal awards to safeguard federal funds. Condition: Although no material noncompliance with federal grant requirements was noted, the City did not have written policies and procedures over the components of grant administration. Cause: The City had no written policies and relied on each project director receiving grant funding to comply with all applicable compliance requirements. Effect: The federal government believes that not having written policies and procedures for grant administration increases the risk that the City will not comply with applicable compliance requirements. Questioned Costs: None. Context: Total federal grant expenditures totaled $2,137,798 during the fiscal year ended June 30, 2024. Repeat Finding: No. Recommendation: We recommend the City develop written policies and procedures related to cash management, cost allowability, procurement, and conflict of interest provisions for federal funds it receives. Views of Responsible Officials and Planned Corrective Actions: The City agrees with the recommendation and is developing the appropriate written policies.