Finding 579166 (2022-006)

2022-006 Material Weakness and Material Noncompliance: Cost Principles Department of Commerce - Investments for Public Works and Economic Development Facilities – CFDA No. 11.300 - Year ended June 30, 2022 Condition: The City’s written policies and procedures for compliance over Federal award programs is not complete. The City only has written policies related to procurement, suspension and debarment. Criteria: Under Uniform Guidance cost principles, all grantees who receive Federal funds must have “specific” written policies and procedures for compliance over Federal award programs for all 12 compliance requirements found in the Uniform Guidance. Cause: The City only has internal policies and procedures that comply with State laws and regulation. Effect: Without effectively written and communicated policies and procedures the City will be in noncompliance in the operation of Federal programs and employees might not have the direction necessary to stay in compliance with all Federal compliance requirements when working on or managing Federal award programs. Context: This is a repeat finding and has been elevated to material. There are no questioned costs related to this finding. Recommendation: The City should develop a complete set of “specific” written policies and procedures for compliance over Federal award programs and communicate them to the appropriate City personnel. Views of responsible officials: The City agrees with the finding.