Finding 529910 (2024-005)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-03-25
Audit: 347984
Organization: City of Wetumpka (AL)
Auditor: Bbc&m

AI Summary

  • Core Issue: The City lacks adequate written policies for grant management, failing to meet federal financial management system requirements.
  • Impacted Requirements: Noncompliance with 2 CFR 200.302, which mandates proper procedures for payment methods and cost allowability.
  • Recommended Follow-Up: Develop a comprehensive grants manual to ensure all compliance requirements are met.

Finding Text

2024-005 Internal Controls over Grant Management (Significant Deficiency and Noncompliance) (repeat finding 2023-005) Criteria: 2 CFR 200.302 establishes the requirements of a financial management system adequate to ensure compliance with federal regulations. This system must include written procedures to implement requirements for payment methods and determine the allowability of costs in accordance with subpart E. Statement of Condition: The City has written fiscal policies but they do not meet the financial management system requirements established in the regulations. Cause: The City has processes and procedures in place to administer grant funds but written policies do not contain compliance requirements. Effect: The City is not in compliance with financial management system requirements. Recommendation: The City should develop a grants manual or additional written policies to incorporate all the requirements of 2 CFR 200 and ensure compliance. Views of Management and Planned Corrective Action: See Corrective Action Plan included at the end of the report.

Corrective Action Plan

Internal Controls over Grant Management (Significant Deficiency and Noncompliance) Recommendation: We recommend the City develop a grants manual or additional written policies that comply with the requirements of 2 CFR 200 and ensure compliance. Response to 2024-005: Internal Controls over Grant Management (Significant Deficiency and Non-Compliance) In response to the Deficiency in the City of Wetumpka’s previous corrective action plan, the City was in the process of establishing a written financial management system in accordance with 2 CFR 200.302 to include written procedures to implement requirements for payment methods and determine allowability of costs in accordance with subpart E. The City of Wetumpka has financial management internal controls in place. All of the City’s grant activities (Federal and State) are tracked in a separate fund from the general operating funds under unique assigned general ledger numbers for each grant awarded to the City. All grant funds are deposited into a dedicated bank account and are not co-mingled with other funds of any kind.

Categories

Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1106352 2024-005
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $824,938
20.205 Highway Planning and Construction $167,187
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $122,947
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $87,210
97.067 Homeland Security Grant Program $21,496
16.607 Bulletproof Vest Partnership Program $3,281