Finding Text
Criteria: The Uniform Guidance administrative requirements and cost principles apply to federal funding awards on or after December 26, 2014. 2 CFR 200, Subpart D – Post Federal Award Requirements and Subpart E – Cost Principles of the Uniform Guidance require specific written policies and internal controls relative to federal awards.
Condition: The written policies and procedures of the City do not directly address all of the requirements under the Uniform Guidance for federal programs as it relates to allowable costs and procurement. Additionally, the City does not have controls in place to ensure accurate and timely reporting of federal awards nor are there controls in place to monitor if vendors have been suspended or debarred.
Cause: The City has not taken appropriate steps to formalize policies and procedures relating to the requirements established under Uniform Guidance for compliance with allowable costs and procurement. The City has also failed to implement controls over reporting and the monitoring of vendors.
Questioned Costs: None
Effect: The City is susceptible to a higher risk of non-compliance with federal awarding requirements as they relate to allowable costs, procurement, reporting, and suspension and debarment.
Identification of a repeat finding: This is a similar finding from previous audits, 2022-008, 2021-008, 2020-007, 2019-009, and 2018-009.
Recommendation: The City must establish written policies and procedures to ensure compliance with Uniform Guidance relating to allowable costs and procurement. The City must also establish controls over reporting and vendor monitoring.
View of Responsible Official: Management will implement policies and procedures to ensure compliance with Uniform Guidance requirements regarding allowable costs, procurement, reporting, and vendor monitoring.