Finding Text
21.027 - Coronavirus State and Local Fiscal Recovery Funds
Criteria:
2 CFR Part 200.302(b)(7) requires the financial management system to include written procedures for determining the allowability of costs.
Condition:
City of Oregon City has not developed written procedures for determining the allowability of costs.
Cause:
Administration did not have written procedures for determining the allowability of costs.
Effect:
Unallowable costs could be charged to the program.
Questioned Costs:
None
Perspective:
Written procedures for determining the allowability of costs is integral to the proper design of internal controls. However, the results of audit procedures did not detect any costs which are not allowable charged to the program.
Recommendations:
Management should develop written procedures as required by 2 CFR Part 200.302(b)(7).
Views of Responsible Officials:
Management understands the requirement for written procedures for determining the allowability of costs. A formal policy and procedure was approved and adopted August 22, 2023. The opportunity to identify this finding arose due to new management staff and a new audit firm engaged with the June 30, 2022, audit, and we appreciate the opportunity to improve compliance.