FAC Explorer

Finding 1206155 (2025-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-04-08
Audit: 398155
Organization: City of Bruceville-Eddy (TX)
Auditor: BROCKWAY GERSBACH FRANKLIN & NIEMEIER PC

AI Summary

  • Answer: The City lacks written policies for determining allowable costs under Uniform Guidance.
  • Trend: This non-compliance may jeopardize future grant awards and lead to un-allowed costs being charged.
  • List: Implement written policies and procedures to align with Uniform Guidance requirements.

Finding Text

Condition: The City has not adopted written policies or procedures regarding the determination of allowable costs in accordance with Uniform Guidance. Criteria: CFR 200.302(b)(7) Cause of Condition: Unfamiliarity with requirements stated in 2 CFR 200 of Uniform Guidance. Effect of Condition: Effect is a state of non-compliance which may impact future grant awards or failure to identify and reject un-allowed costs charged to grant programs. Recommendation: Adopt policies and procedures to become compliant with Uniform Guidance.

Corrective Action Plan

Per the recommendation to adopt a procedure to determine the allowability of cost per 2 CFR 200.302(b){7), our existing financial management policy covers the allowable cost principles in various sections within the policy. However, we will add in a section to our policy per the federal rule giving a procedure on documenting and determining if specific costs are allowable or not and in conformance. This action should be resolved before October 31st.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 1206156 2025-003
    Material Weakness Repeat
  • 1206157 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Waste Disposal Systems for Rural Communities $12.37M
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $27,500