Finding 369772 (2023-002)

Finding 2023-002 – Lack of Internal Control Over Financial Reporting – Inability to Produce a Schedule of Expenditure of Federal Awards Criteria – Entities that expend Federal funds in excess of $750,000 are each required to gain an understanding of the compliance requirements found in 2 C.F.R. 200 – Uniform Guidance for the specific Federal grant awards the entity receives. The entity should understand those compliance requirements and prepare a Schedule of Expenditure of Federal Awards. Condition – The City of Bellevue shows a lack of familiarity with the 2 C.F.R. 200 – Uniform Guidance compliance requirements and reporting requirements. Effect – This lack of familiarity with the compliance requirements may, in the future, allow funds to be used in a manner that is not consistent with Allowable Activities and Cost Principles in 2 C.F.R.200 – Uniform Guidance. Other compliance requirements such as Program Income, Eligibility, Cost Matching, Suspension/Debarment may also be affected. Recommendation – The City of Bellevue should gain an understanding of the compliance requirements for each federal award and prepare a Schedule of Expenditure of Federal Awards. Management’s Response – Management will utilize a consultant to gain an understanding of each federal award and to prepare a related Schedule of Expenditure of Federal Awards.