Finding 49599 (2022-008)

Material Weakness Repeat Finding
Requirement
BI
Questioned Costs
-
Year
2022
Accepted
2023-01-17

AI Summary

  • Core Issue: The City lacks comprehensive written policies and internal controls for federal awards, failing to meet Uniform Guidance requirements.
  • Impacted Requirements: Key areas affected include allowable costs, procurement processes, and accurate reporting of federal awards.
  • Recommended Follow-Up: The City should develop and implement formal policies and controls to ensure compliance with federal requirements and monitor vendor status.

Finding Text

SECTION III ? FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2022-008 ENHANCEMENT OF POLICIES AND PROCEDURES FOR FEDERAL AWARDS Criteria: The Uniform Guidance administrative requirements and cost principles apply to federal funding awards on or after December 26, 2014. 2 CFR 200, Subpart D ? Post Federal Award Requirements and Subpart E ? Cost Principles of the Uniform Guidance require specific written policies and internal controls relative to federal awards. Condition: The written policies and procedures of the City do not directly address all of the requirements under the Uniform Guidance for federal programs as it relates to allowable costs and procurement. Additionally, the City does not have controls in place to ensure accurate and timely reporting of federal awards nor are there controls in place to monitor if vendors have been suspended or debarred. Cause: The City has not taken appropriate steps to formalize policies and procedures relating to the requirements established under Uniform Guidance for compliance with allowable costs and procurement. The City has also failed to implement controls over reporting and the monitoring of vendors. Questioned Costs: None Effect: The City is susceptible to a higher risk of non-compliance with federal awarding requirements as they relate to allowable costs, procurement, reporting, and suspension and debarment.

Corrective Action Plan

Management will establish written policies and procedures to ensure compliance with Uniform Guidance. Additionally, management will establish control to ensure timely reporting of federal awards as well as the monitoring of vendors for suspension and debarment. Contact Person: Mayor Leroy Sullivan and Sandra Williams. Anticipated Completion Date: Monthly basis.

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Other Findings in this Audit

  • 49598 2022-007
    Material Weakness Repeat
  • 626040 2022-007
    Material Weakness Repeat
  • 626041 2022-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.26M
14.871 Section 8 Housing Choice Vouchers $560,967
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $388,876
15.904 Historic Preservation Fund Grants-in-Aid $20,132
97.044 Assistance to Firefighters Grant $7,826