FAC Explorer

Finding 401733 (2022-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2024-06-24
Audit: 309670
Organization: City of Hopkins (MN)
Auditor: Abdo LLP

AI Summary

  • Core Issue: The City lacks required written procedures for key areas under the Uniform Guidance, leading to non-compliance.
  • Impacted Requirements: Areas affected include Allowable Costs, Time and Effort, Cash Management, Conflict of Interest, and existing procurement and equipment management standards.
  • Recommended Follow-Up: The City should create and implement comprehensive written policies and procedures to ensure compliance with all relevant Uniform Guidance requirements.

Finding Text

2022-001 Uniform Guidance written policies and procedures Condition: During our audit, we discovered the City did not develop written procedures as required by the Uniform Guidance for the following: • Determination of Allowable of Costs - §200.302(b)(7) • Time and Effort - §200.430(a) • Cash Management of Federal Funds - §200.302(b)(6) • Conflict of Interest - §200.318(c)(1-2) • The City must also ensure that existing written procedures are in compliance with: • General Procurement Standards - §200.318-.326 • Equipment Management Requirements - §200.313 Criteria: The City “must” establish and maintain effective internal control over Federal awards that provides reasonable assurance that the City is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Cause: The City did not have these written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The City was out of compliance with this requirement. Recommendation: The City should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management response: The City will establish written policies and procedures to ensure future compliance with the Uniform Guidance requirements.

Corrective Action Plan

CORRECTIVE ACTION PLAN The following is our response to findings in the audit as of June 30, 2022 FINDING 2022-001 - Uniform Guidance written policies and procedures During our audit, we discovered the City did not develop written procedures as required by the Uniform Guidance. Corrective Action Plan (CAP): 1. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding: The City Council will adopt written federal grant policies and procedures. 3.Official Responsible for Ensuring CAP: Nick Bishop, Business Manager, is the official responsible for ensuring corrective action. 3. Planned Completion Date for CAP: Fiscal year end 2024. 4. Plan to Monitor Completion of CAP: The City Council will be monitoring this corrective action plan. Sincerely, Nick Bishop City Finance Director

Categories

Procurement, Suspension & Debarment Cash Management

Other Findings in this Audit

  • 401734 2022-001
    Significant Deficiency
  • 401735 2022-001
    Significant Deficiency
  • 401736 2022-001
    Significant Deficiency
  • 401737 2022-001
    Significant Deficiency
  • 401738 2022-001
    Significant Deficiency
  • 401739 2022-001
    Significant Deficiency
  • 401740 2022-001
    Significant Deficiency
  • 401741 2022-002
    Material Weakness
  • 401742 2022-002
    Material Weakness
  • 401743 2022-002
    Material Weakness
  • 401744 2022-002
    Material Weakness
  • 401745 2022-002
    Material Weakness
  • 401746 2022-002
    Material Weakness
  • 401747 2022-002
    Material Weakness
  • 401748 2022-002
    Material Weakness
  • 978175 2022-001
    Significant Deficiency
  • 978176 2022-001
    Significant Deficiency
  • 978177 2022-001
    Significant Deficiency
  • 978178 2022-001
    Significant Deficiency
  • 978179 2022-001
    Significant Deficiency
  • 978180 2022-001
    Significant Deficiency
  • 978181 2022-001
    Significant Deficiency
  • 978182 2022-001
    Significant Deficiency
  • 978183 2022-002
    Material Weakness
  • 978184 2022-002
    Material Weakness
  • 978185 2022-002
    Material Weakness
  • 978186 2022-002
    Material Weakness
  • 978187 2022-002
    Material Weakness
  • 978188 2022-002
    Material Weakness
  • 978189 2022-002
    Material Weakness
  • 978190 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $617,675
14.850 Public and Indian Housing $305,824
14.870 Resident Opportunity and Supportive Services - Service Coordinators $94,315
97.083 Staffing for Adequate Fire and Emergency Response (safer) $42,000
14.872 Public Housing Capital Fund $24,478
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $2,560
20.616 National Priority Safety Programs $1,542
93.959 Block Grants for Prevention and Treatment of Substance Abuse $900