Finding Text
Document Policies and Procedures Over Federal Awards Federal Program(s) Information
Cluster/Program: All federal Programs
Type of Finding
Compliance- Other Matters
Criteria or Specific Requirement
OMB’s Uniform Administrative Requirements. Cost Principles, and Audit Requirements for Federal Awards 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 and program management. Specifically, written policies are required for the following: Cash management
Determination of allowable costs
Program income
Eligibility determination
Equipment and real property management
Period of performance
Procurement
Subrecipient monitoring and management The City does not have written policies and procedures related to federal awards, as required under the Uniform Guidance. Specifically, there are no formalized written policies for cash management, allowable costs, program income/requesting reimbursement, eligibility determination, equipment and real property management, subrecipient monitoring, and period of performance. Additionally, the existing written policies for procurement do not include standards of conduct over conflicts of interest and procedures for evaluating vendors for suspension and debarment, as required by the Uniform Guidance.
Cause
Weaknesses in the design of internal controls.
Effect or Potential Effect
There are no questioned costs as there are no costs directly associated with this compliance requirement, and this is a procedural requirement under the Uniform Guidance.
Recommendation
The City should address the weakness in internal controls noted above in order to comply with the Uniform Guidance.
Views of Responsible Official
Management agrees with the finding.
Planned Corrective Action
Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.
SECTION IV - SCHEDULE OF PRIOR YEAR FINDINGS