Finding Text
Criteria: In accordance with the Uniform Guidance, the City should have internal controls over some or all of the compliance requirements for major federal programs. Condition: The City's internal controls over activities allowed/allowable costs were determined to be ineffective during the performance of internal control testing over the major federal program. Cause: The City did not adhere to their established controls and procedures over activities allowed/allowable costs. Effect: There were 15 transactions totaling $29,550 that were incurred prior to the grant award. As a result, the City was not in compliance with allowable activities and cost requirements with questioned costs totaling $29,550. Recommendation: The City should review their established policies and procedures for effectiveness and ensure all employees adhere to all established procedures. Management's Corrective Action Plan: The City of Scott will review financial policies and procedures and make any necessary changes to ensure an effective control environment.