2023-005 Internal Controls over Grant Management (Significant Deficiency and Noncompliance)
Recommendation: We recommend the City develop a grants manual or additional written policies that comply with the requirements of 2 CFR 200 and ensure compliance.
Response to 2023-005
Internal Controls over Grant Management (Significant Deficiency and Non-Compliance)
In response to the Deficiency in the City of Wetumpka’s previous corrective action plan, the City was in the process of establishing a written financial management system in accordance with 2 CFR 200.302 to include written procedures to implement requirements for payment methods and determine allowability of costs in accordance with subpart E.
Before the current audit was performed, the staff member writing these procedures separated from our organization. Due to the City of Wetumpka being a small town, we did not have the staff available to complete the task due in part to the lack of individuals looking for work in a post COVID world.
Because of our lack of personnel and the fact we did not feel we would meet the $750,000 threshold required for a Single Audit, the project was abandoned. The City of Wetumpka has financial management internal controls in place. All of the City’s grant activities (Federal and State) are tracked in a separate fund from the general operating funds under unique assigned general ledger numbers for each grant awarded to the City. All grant funds are deposited into a dedicated bank account and are not co-mingled with other funds of any kind.