Finding 575657 (2024-003)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-05
Audit: 365663
Organization: City of Cherry Hills Village (CO)

AI Summary

  • Core Issue: The City submitted Annual Reports without a separate review, violating the requirement for effective internal controls over Federal awards.
  • Impacted Requirements: This situation breaches the Uniform Guidance in 2 CFR Section 200.303, which mandates proper documentation and review processes.
  • Recommended Follow-Up: Implement a policy requiring that Annual Reports be approved by someone other than the preparer before submission.

Finding Text

Criteria or specific requirement: The Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-Federal recipients and subrecipients must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance the award is in compliance with the Federal Statutes, regulations, and the terms and conditions of the Federal award. Condition: The City's Annual Reports were prepare and submitted by the same individual. The was no additional level of review before submitting. Questioned costs: No Context: The Annual Report is prepared and submitted by the same indivdual with no approver. Cause: The City did not have a control in place surrounding review of the Annual Report prior to submission. Effect: Lack of approval could result in misstatement of federal funds being submitted. Repeat Finding: No Recommendation: We recommend that the Annual Report be approved by someone other than preparer prior to submisson. View of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Federal Progarm Name: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (CSLFRF Progarm) - Assistance Listing No. 21.027 Recommendation: We recommend that the Annual Report be approved by someone other than preparer prior to submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken is response to finding: The City will create and enact financial reporting procedures that outlines how to handle reporting for funding such as ARPA to ensure that these reports are being reviewed and approved before submission in the future. Name of the contact person responsible for corrective action: Kelly Newman, Director of Finance and Administration. Planned completion date for corrective action plan: December 31, 2025.

Categories

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1152099 2024-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.34M