Finding 1205260 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-31
Audit: 396984
Organization: City of McCall, Idaho (ID)
Auditor: SORREN CPAS PC

AI Summary

  • Core Issue: Internal controls over federal awards must be established and documented to ensure compliance with federal laws and award terms.
  • Impacted Requirements: Compliance with 2 CFR 200.303 and alignment with federal internal control standards is essential.
  • Recommended Follow-Up: Review and enhance internal control systems to meet federal guidelines and ensure effective management of awards.

Finding Text

ESTABLISH, DOCUMENT, AND MAINTAIN EFFECTIVE INTERNAL CONTROL OVER THE FEDERAL AWARD THAT PROVIDES REASONABLE ASSURANCE THAT THE RECIPIENT OR SUBRECIPIENT IS MANAGING THE FEDERAL AWARD IN COMPLIANCE WITH FEDERAL STATUTES, REGULATIONS, AND THE TERMS AND CONDITIONS OF THE FEDERAL AWARD. THESE INTERNAL CONTROLS SHOULD ALIGN WITH THE GUIDANCE IN “STANDARDS FOR INTERNAL CONTROL IN THE FEDERAL GOVERNMENT” ISSUED BY THE COMPTROLLER GENERAL OF THE UNITED STATES OR THE “INTERNAL CONTROL-INTEGRATED FRAMEWORK” ISSUED BY THE COMMITTEE OF SPONSORING ORGANIZATIONS OF THE TREADWAY COMMISSION (COSO), 2 CFR 200.303.

Corrective Action Plan

THE CITY WILL IMPROVE GRANT EXPENDITURES RECORDKEEPING BY USING CASELLE, OUR ENTERPRISE GENERAL LEDGER (GL) SYSTEM, AS THE PRIMARY SYSTEM OF RECORD FOR TRACKING ALL GRANT-RELATED REVENUE, EXPENDITURES, AND PROJECT ACTIVITY. THE CITY WILL UTILIZE THE CASELLE PROJECT ACCOUNTING MODULE AS THE OFFICIAL GRANT/PROJECT TRACKING MECHANISM AND WILL FORMALIZE A CONSISTENT GRANT ACCOUNTING STRUCTURE WITHIN CASELLE (INCLUDING APPROPRIATE FUND/PROJECT/GRANT CODES AND EXPENDITURE ACCOUNTS) SO THAT GRANT TRANSACTIONS ARE CLEARLY IDENTIFIED, ACCURATELY CODED, AND FULLY SUPPORTED BY DOCUMENTATION. TO ENSURE THE ONGOING ACCURACY OF THE GENERAL LEDGER AND PROJECT RECORDS, THE CITY WILL IMPLEMENT ROUTINE RECONCILIATION AND REVIEW PROCEDURES THAT TIE AMOUNTS RECORDED IN CASELLE (INCLUDING PROJECT ACCOUNTING ACTIVITY) TO SUPPORTING DOCUMENTATION AND REIMBURSEMENT ACTIVITY AND WILL CORRECT ANY MISCODING OR OMISSIONS PROMPTLY. THE CITY WILL ALSO UPDATE WRITTEN GRANT ACCOUNTING PROCEDURES AND PROVIDE TRAINING TO STAFF INVOLVED IN PURCHASING, ACCOUNTS PAYABLE, AND GRANT ADMINISTRATION TO REINFORCE CODING REQUIREMENTS, DOCUMENTATION STANDARDS, AND REVIEW RESPONSIBILITIES.

Categories

Subrecipient Monitoring Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $671,076
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $368,655
20.205 HIGHWAY PLANNING AND CONSTRUCTION $273,010
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $54,249
16.835 BODY WORN CAMERA POLICY AND IMPLEMENTATION $4,795