FAC Explorer

Finding 513007 (2023-001)

Significant Deficiency
Requirement
ABCEFGHIJLMNP
Questioned Costs
-
Year
2023
Accepted
2024-12-04
Audit: 330904
Organization: City of Lebanon (NH)
Auditor: Plodzik & Sanderson P A

AI Summary

  • Core Issue: The City lacks formal written policies and procedures for managing Federal awards, which is a significant deficiency in compliance.
  • Impacted Requirements: Key areas affected include allowable costs, conflict of interest, employee travel, cash management, procurement, and subrecipient monitoring.
  • Recommended Follow-Up: The City should develop and adopt the necessary written policies and procedures promptly to comply with federal requirements.

Finding Text

2023-001 Document Policies and Procedures over Federal Awards (Significant Deficiency) Cluster/Program: All Federal Programs Type of Finding: Compliance – Other Matters Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement: OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) established significant requirements related to Federal awards. The requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial program management. Specifically, written policies are required for the following: • Determination of allowable costs • Conflict of interest • Employee travel • Cash Management • Equipment and inventory • Procurement and Suspension and Debarment • Time and effort reporting; and • Subrecipient monitoring and management. Condition: The City has not formalized written policies and procedures related to Federal awards as required under Uniform Guidance. Cause: Weaknesses in the formal documentation of internal controls. Effect: There are no formal policies related to federal grant activity noted above. Questioned Costs: There are no questioned costs because of this finding as there are no costs directly associated with this compliance requirement. Identification as Repeat Finding: This is not a repeat finding. Recommendation: The City should ensure that written policies and procedures are compiled and adopted as soon as practicable to ensure compliance with the Uniform Guidance. Views of Responsible Officials: Management’s views and corrective action plan is included at the end of this report.

Corrective Action Plan

Audit Finding Reference: 2023-001 Management’s Response and Planned Corrective Action: The City will review and update its existing policies to ensure they include the necessary language and provisions required by 2 CFR 200. This effort aims to align the City's policies with federal regulations, ensuring compliance with grant management standards, cost principles, and audit requirements outlined in the Uniform Guidance. Name of Contact Person and Completion Date: Name 1: Shaun Mulholland, City Manager Name 2: Vicki Lee, Finance Director Anticipated Completion Date – 1/31/2025

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles Equipment & Real Property Management

Other Findings in this Audit

  • 513008 2023-001
    Significant Deficiency
  • 513009 2023-001
    Significant Deficiency
  • 513010 2023-001
    Significant Deficiency
  • 513011 2023-001
    Significant Deficiency
  • 513012 2023-001
    Significant Deficiency
  • 513013 2023-001
    Significant Deficiency
  • 513014 2023-001
    Significant Deficiency
  • 513015 2023-001
    Significant Deficiency
  • 513016 2023-001
    Significant Deficiency
  • 513017 2023-001
    Significant Deficiency
  • 513018 2023-001
    Significant Deficiency
  • 513019 2023-001
    Significant Deficiency
  • 513020 2023-001
    Significant Deficiency
  • 513021 2023-001
    Significant Deficiency
  • 513022 2023-001
    Significant Deficiency
  • 513023 2023-001
    Significant Deficiency
  • 513024 2023-001
    Significant Deficiency
  • 513025 2023-001
    Significant Deficiency
  • 513026 2023-001
    Significant Deficiency
  • 513027 2023-001
    Significant Deficiency
  • 513028 2023-001
    Significant Deficiency
  • 513029 2023-001
    Significant Deficiency
  • 513030 2023-001
    Significant Deficiency
  • 513031 2023-001
    Significant Deficiency
  • 1089449 2023-001
    Significant Deficiency
  • 1089450 2023-001
    Significant Deficiency
  • 1089451 2023-001
    Significant Deficiency
  • 1089452 2023-001
    Significant Deficiency
  • 1089453 2023-001
    Significant Deficiency
  • 1089454 2023-001
    Significant Deficiency
  • 1089455 2023-001
    Significant Deficiency
  • 1089456 2023-001
    Significant Deficiency
  • 1089457 2023-001
    Significant Deficiency
  • 1089458 2023-001
    Significant Deficiency
  • 1089459 2023-001
    Significant Deficiency
  • 1089460 2023-001
    Significant Deficiency
  • 1089461 2023-001
    Significant Deficiency
  • 1089462 2023-001
    Significant Deficiency
  • 1089463 2023-001
    Significant Deficiency
  • 1089464 2023-001
    Significant Deficiency
  • 1089465 2023-001
    Significant Deficiency
  • 1089466 2023-001
    Significant Deficiency
  • 1089467 2023-001
    Significant Deficiency
  • 1089468 2023-001
    Significant Deficiency
  • 1089469 2023-001
    Significant Deficiency
  • 1089470 2023-001
    Significant Deficiency
  • 1089471 2023-001
    Significant Deficiency
  • 1089472 2023-001
    Significant Deficiency
  • 1089473 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program, Covid-19 Airports Programs, and Infrastructure Investment and Jobs Act Programs $283,673
21.027 Coronavirus State and Local Fiscal Recovery Funds $151,293
20.205 Highway Planning and Construction $53,050
16.738 Edward Byrne Memorial Justice Assistance Grant Program $45,000
20.600 State and Community Highway Safety $26,157
93.008 Medical Reserve Corps Small Grant Program $21,377
15.916 Outdoor Recreation Acquisition, Development and Planning $11,138
97.067 Homeland Security Grant Program $10,917
15.904 Historic Preservation Fund Grants-in-Aid $7,000
16.607 Bulletproof Vest Partnership Program $2,454
93.069 Public Health Emergency Preparedness $2,421