Finding Text
Single Audit Process Criteria ? Title 2, U.S. Code of Federal Regulations ?200.501 states that an entity that expends $750,000 or more during the non-Federal entity?s fiscal year in Federal awards, they must have a single audit or program-specific audit conducted for that year in accordance with the provision in ?200.501. Condition ? The City had over $750,000 in federal expenditures in the current year and did not request an audit in accordance with Uniform Guidance. Cause ?The City?s management did not track expenditures of federal awards for the year ended June 30, 2022 to determine what federal audit requirements applied if any. Were it not for our recommendation that an Audit in accordance with Uniform Guidance was required, it may have been missed. Effect ? The City?s internal control over compliance with federal audit requirements was inadequate. Recommendation ? The City should establish a process to track the dollar amount of federal expenditures that were spent during the year to determine if an audit in accordance with uniform guidance is required. This should be done and communicated with the auditors before audit work begins. Corrective Action ? The City will work on a formal process for tracking all federal grants. The city has always been cognizant of this rule and did inform the auditors when the audit was being performed. The City Administrator feels strongly that this requirement was met. Conclusion ? Response accepted.