Finding 1206058 (2025-010)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-04-07
Audit: 397933
Organization: CITY OF COLSTRIP (MT)

AI Summary

  • Core Issue: The city failed to submit all required quarterly and final reports for grant agreements AM-23-0256 and AM-23-0255 to DNRC.
  • Impacted Requirements: Non-compliance with grant terms increases the risk of oversight and potential sanctions, affecting future funding opportunities.
  • Recommended Follow-Up: Implement formal grant management procedures with documented supervisory reviews to ensure timely and complete report submissions.

Finding Text

NONCOMPLIANCE WITH GRANT TERMS AND CONDITIONS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, ASSISTANCE LISTING No. 21.027, AM-23-0256, AM-23-0255, YEAR ENDED JUNE 30, 2025 Criteria: The grant agreements for AM-23-0256 and AM-23-0255 require the city to submit to the Montana Department of Natural Resources and Conservation (DNRC) quarterly progress reports during the term of the agreements and a final report upon project completion. Condition: The city did not submit all required reports to DNRC, and some of the reports that were submitted were incomplete. Cause: The city is not in compliance with the terms and conditions of the DNRC grant agreements, which may increase the risk of additional oversight, sanctions, or limitations on future grant funding. Effect: Non-compliance with program terms and conditions. Questioned costs: None. Recommendation: The city should develop and implement formal written grant management procedures to ensure full compliance with DNRC grant terms and conditions. These procedures should require documented supervisory review to verify that reports are complete, accurate, and submitted to DNRC on or before the required dates. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.

Corrective Action Plan

NONCOMPLIANCE WITH GRANT TERMS AND CONDITIONS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, ASSISTANCE LISTING No. 21.027, AM-23-0256, AM-23-0255, YEAR ENDED JUNE 30, 2025 Name of contact person: Michelle Richards – City Clerk/Treasurer Corrective Action: Written grant administration policies and procedures will be developed. Procedures will include designation of parties responsible for submission of required documents, progress/monitoring reports, draw requests, etc. Proposed Completion Date: Fiscal year 2027

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1206054 2025-009
    Material Weakness Repeat
  • 1206055 2025-009
    Material Weakness Repeat
  • 1206056 2025-010
    Material Weakness Repeat
  • 1206057 2025-009
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $667,784
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $31,664