Finding Text
Fiscal year finding initially occurred: 2022
COVID-19 Coronavirus State and Local Fiscal Recovery Funds (21.027)
CRITERIA: The Uniform Guidance requires a grant recipient to establish and maintain effective controls in order to ensure compliance with the federal award regulations, statutes, and terms and conditions of the grant.
CONDITION: The organization did not obtain and maintain written price and/or rate quotations from an adequate number of qualified sources for a professional service contract that ranged between $10,000 - $250,000. The organization paid $250,000 on the services contract during the fiscal year. Additionally, 3 transactions totaling $12,952 requested for reimbursement under this grant were previously requested for reimbursement on a CDBG-CV grant. The total questioned costs amounted to $262,952.
CAUSE: The Organization does not have internal controls in place to ensure compliance with the allowable costs and allowable activities requirements.
EFFECT: The Organization was unable to provide relevant documentation to support compliance with the federal award regulations, statutes, and terms and conditions of the grant.
RECOMMENDATION: The Organization should establish and maintain effective internal controls to ensure compliance with federal award regulations, statutes, and terms and conditions of the grant.
MANAGEMENT’S CORRECTION ACTION PLAN: While the team working with the Mayor’s Healthy City Initiative believes the amounts paid to all vendors for services rendered were reasonable based on comparison market data we understand the need to obtain and maintain the required number of written quotations and will work to establish and maintain effective internal controls to ensure compliance with federal award regulations, statutes and terms and conditions of each grant.