Finding Text
Federal Program: Waste and Waste Disposal Systems for Rural Communities (10.760). 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: The City did not have written policies and procedures over any of the components of grant administration. Cause: The City was not aware of this requirement. Effect: There are no written policies for the City to follow to decrease the likelihood of misuse of federal funds. Questioned Costs: None. Context: The total federal funds expended during the year ending December 31, 2025 totaled $1,486,019. Repeat Finding: No. Recommendation: The City needs to 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: Management concurs with the finding and will develop and adopt an appropriate written policies manual as soon as possible.