Finding 522214 (2023-005)

2023-005 Federal Agency: U.S. Department of Agriculture Federal Program Title: Water and Waste Disposal Systems for Rural Communities Assistance Listing Number: 10.760 Federal Award Identification Numbers and Year: CPAP0000001243051 - 2023, CPAP0000001243052 - 2023 Award Period: January 1, 2023 to December 31, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Reporting Procedures Criteria or Specific Requirement: The grant agreement specifies reporting requirements. Condition: The annual budget and projected cash flow statements required by the grant agreement were not completed timely. The City does not have procedures in place to ensure required reports under the Transparency Act are prepared and submitted. Questioned Costs: None. Context: The City does not have procedures to ensure the reports required are being completed timely. Cause: The City does not have experience with the requirements of the federal grant. Effect: Noncompliance with reporting requirements. Repeat Finding: Yes - 2022-006. Recommendation: We recommend the City adopt procedures to ensure applicable reports are submitted timely and accurately. View of Responsible Official: There is no disagreement with the finding. We will work with our USDA contacts and engineer to better understand the required reporting and ensure these budget and other reports are properly and timely filed in 2025.