Finding 394320 (2023-002)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-04-24
Audit: 304316
Organization: City of Groves, Texas (TX)

AI Summary

  • Core Issue: The City failed to properly monitor changes to grant requirements, specifically missing the BABA Act in bid documents.
  • Impacted Requirements: Timely monitoring of control activities is essential for compliance with grant conditions.
  • Recommended Follow-Up: Implement a system to regularly check for updates to grant requirements post-award.

Finding Text

2023‐002 – Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) United States Department of Treasury, Passed through the Texas Division of Emergency Management. Internal Control – Monitoring Criteria: Monitoring should be such that there is an assurance that control activities are being performed in a timely manner. Condition and Context: The procedures in place did not include proper monitoring of changes made to the program requirements. Cause: The City was not effectively monitoring for grant changes. Effect: The City did not include the Build America, Buy America (BABA) Act requirements in their August 3, 2022 bid documents. Recommendation: The City should take steps to monitor grants for changes made to the grant requirements after the grant has been awarded. View of Responsible Party: Management concurs with the recommendation. See corrective action plan.

Corrective Action Plan

Kevin Carruth, City Manager, will monitor the steps taken by the grant management consultant and the Director of Finance to keep apprised of changes made to the grant requirements.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Internal Control / Segregation of Duties

Other Findings in this Audit

  • 394319 2023-001
    Significant Deficiency
  • 970761 2023-001
    Significant Deficiency
  • 970762 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.76M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.57M