FAC Explorer

Finding 31783 (2022-003)

Material Weakness
Requirement
ABL
Questioned Costs
-
Year
2022
Accepted
2023-07-11
Audit: 26078
Organization: City of Inver Grove Heights (MN)
Auditor: Abdo LLP

AI Summary

  • Core Issue: The City lacks proper internal controls for reviewing reimbursement requests and reports before submission.
  • Impacted Requirements: This deficiency violates Title 2 U.S. Code of Federal Regulations Part 200, which mandates internal control procedures over expenditures.
  • Recommended Follow-Up: The City should establish specific internal controls for approving reimbursement requests and ensuring compliance with reporting requirements.

Finding Text

2022-003 U.S. Department of Homeland Security Staffing for Adequate Fire and Emergency Response Activities Allowed or Unallowed and Allowable Costs Reporting Deficiency in Internal Control over Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures. Condition: During the course of our engagement, we noted reimbursement requests and required reports were not reviewed prior to submission and the City did not have sufficient internal controls over the reporting process. Cause: The City did not have adequate internal controls to ensure control procedures over expenditures. Effect: Internal controls procedures were not properly performed over expenditures. Recommendation: We recommend the City develops internal controls specifically addressing reimbursement request approval and reporting requirements. Management Response: Management is working on a process for approving and submitting reimbursement requests and required reports.

Corrective Action Plan

2022-003 U.S. Department of Homeland Security Staffing for Adequate Fire and Emergency Response Activities Allowed or Unallowed and Allowable Costs Reporting Deficiency in Internal Control over Compliance Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires internal control procedures to be performed over expenditures. During the course of our engagement, we noted reimbursement requests and required reports were not reviewed prior to submission and the City did not have sufficient internal controls over the reporting process. CORRECTIVE ACTION PLAN (CAP): Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Action Planned in Response to Finding: Management is aware of the compliance issue and will implement the suggested procedures. Official Responsible for Ensuring CAP: Amy Hove, Finance Director, would be responsible for procedures. Planned Completion Date for CAP: Procedures will be implemented in the current fiscal year. Plan to Monitor Completion of CAP: The finance department will review internal control procedures. Sincerely, Amy Hove Finance Director

Categories

Allowable Costs / Cost Principles Cash Management Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
97.083 Staffing for Adequate Fire and Emergency Response (safer) $896,122
21.027 Coronavirus State and Local Fiscal Recovery Funds $122,430
20.600 State and Community Highway Safety $3,768
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $1,700
20.616 National Priority Safety Programs $694