Finding 32634 (2022-003)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-09-07
Audit: 29219
Organization: Town of Dayton (WY)

AI Summary

  • Core Issue: The Town of Dayton lacks written internal control policies and procedures for managing Federal grants.
  • Impacted Requirements: This finding violates federal regulations (2 CFR 200.303) requiring effective internal controls for Federal awards.
  • Recommended Follow-Up: The Town should create and adopt these written policies and review them annually to ensure compliance.

Finding Text

2022-003: Written Internal Control Policies and Federal Grant Award Procedures Finding Prior Year Findings: None Department Agency: Department of Interior State Department: Wyoming State Loan & Investment Board Office of State Lands & Investments Assistance Listing Number: ALN # 15.252 Type of Finding: Significant Deficiency Questioned Costs: None Criteria: Federal regulations 2 CFR 200.303 states non-Federal entity establish and maintain effective internal control over the Federal awards. Internal controls is generally defined as a process effected by an entity's oversight body, management, and other personnel that provides reasonable assurance that the objectives of an entity will be achieved. Internal control is not one event or circumstance, but a dynamic and iterative process-actions that permeate an entity's activities and are an integral part of the way auditee management runs the entity. Condition: The Town did not have written internal controls and Federal grant award policies in place. Cause and Effect: The Town is not dependent on Federal revenues, and had significant staff turnover of key positions. Repeat Finding: No Recommendation: We recommend that the Town of Dayton develop and adopt written internal controls and Federal grant award procedures. These policies and procedures need to be reviewed annually based on Federal agencies awarding the Federal funds. Response: Please see the last page of this report for the Town's response to this finding.

Corrective Action Plan

2022-003: Written Internal Control Policies and Federal Grant Award Procedures Finding Condition ? The Town did not have written internal controls and Federal grant award policies in place. Corrective Action Plan ? The Town will develop a written internal control policy and Federal grant award procedures in the coming months to comply with this finding.

Categories

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 33452 2022-004
    Significant Deficiency
  • 609076 2022-003
    Significant Deficiency
  • 609894 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
15.252 Abandoned Mine Land Reclamation (amlr) Program $1.09M
21.027 Coronavirus State and Local Fiscal Recovery Funds $143,783