Finding 401749 (2023-001)

Significant Deficiency Repeat Finding

Requirement

Questioned Costs

Year

2023

Accepted

2024-06-24

Audit: 309671

Organization: City of Hopkins (MN)

Auditor: Abdo LLP

AI Summary

Core Issue: The City lacks necessary written procedures for compliance with Uniform Guidance, affecting key areas like cost determination and cash management.
Impacted Requirements: Specific sections of the Uniform Guidance, including §200.302(b)(7), §200.430(a), and §200.318, are not being met.
Recommended Follow-Up: The City should create and implement written policies to ensure compliance with all relevant Uniform Guidance requirements.

Finding Text

2023-001 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 December 31, 2023 FINDING 2023-001 - 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, Finance Director, 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 14

Other Findings in this Audit

401750 2023-001

Significant Deficiency Repeat
401751 2023-001

Significant Deficiency Repeat
401752 2023-001

Significant Deficiency Repeat
401753 2023-001

Significant Deficiency Repeat
978191 2023-001

Significant Deficiency Repeat
978192 2023-001

Significant Deficiency Repeat
978193 2023-001

Significant Deficiency Repeat
978194 2023-001

Significant Deficiency Repeat
978195 2023-001

Significant Deficiency Repeat

Programs in Audit

ALN	Program Name	Expenditures
21.027	Coronavirus State and Local Fiscal Recovery Funds	$622,226
14.850	Public and Indian Housing	$174,070
14.872	Public Housing Capital Fund	$150,942
14.870	Resident Opportunity and Supportive Services - Service Coordinators	$69,267
97.083	Staffing for Adequate Fire and Emergency Response (safer)	$42,000