Finding Text
Federal Procedures Manual Condition: Internal controls over federal grants should be in place to provide reasonable assurance that misstatements in the schedule of expenditures of federal awards would be prevented or detected. Criteria: Non-federal entities who receive federal or state grants or have grant programs should have documented policies and procedures in place over grants and grant expenditures. Cause: The City does not have documented policies and procedures in place over grants and grant expenditures. Effect: Without documented policies and procedures, the internal control over federal grants is low, and the risk of misstatement in the schedules of expenditures of federal and state awards is high. Auditor?s Recommendation: We recommend that the City work on written policies and procedures over grants and grant expenditures. Management Response: The City will work with their auditor to develop and adopt written grant procedures that are in accordance with the Uniform Guidance.