Finding 1227440 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-08-19

AI Summary

  • Issue: The City failed to submit the prior-year reporting package on time to the Federal Audit Clearinghouse, violating Uniform Guidance requirements.
  • Impact: Lack of adequate controls led to non-compliance with federal reporting deadlines, although there were no questioned costs.
  • Recommendation: The City should enhance monitoring procedures for federal reporting deadlines to ensure timely submissions in the future.

Finding Text

Criteria:Uniform Guidance requires the auditee to submit the reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. Condition: The City did not submit the prior-year reporting package to the Federal Audit Clearinghouse by the required due date. Cause: The City did not maintain adequate controls and monitoring procedures to ensure compliance with federal reporting deadlines. Effect: The City was not in compliance with Uniform Guidance reporting requirements related to timely submission of the reporting package.Questioned Costs: None. Recommendation: The City should implement procedures to monitor federal reporting deadlines and ensure timely submission of future reporting packages. Views of Responsible Officials The City acknowledges the finding. Management relied on information received from the Arkansas Natural Resources Commission indicating certain funds were considered state funds and therefore not subject to federal reporting requirements. Subsequent clarification determined the expenditures were required to be included in the Schedule of Expenditures of Federal Awards and the related reporting package.The City has implemented additional procedures to review grant agreements, Assistance Listings, and funding source documentation for all grant-funded projects to ensure federal awards are properly identified and reported timely in future periods.

Corrective Action Plan

Corrective Action Plan:The City will implement procedures to review all grant agreements and funding documentation to identify federal awards subject to Uniform Guidance requirements. The City will also establish a monitoring process for federal reporting deadlines and coordinate with its external auditor to ensure the reporting package is submitted timely to the Federal Audit Clearinghouse.Anticipated Completion Date:Immediately implemented for future reporting periods.

Categories

Reporting Subrecipient Monitoring

Other Findings in this Audit

  • 1227441 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.468 DRINKING WATER STATE REVOLVING FUND $1.01M
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $538,100
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $35,000
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $6,425