Finding 58601 (2022-003)

Finding 2022-003 Federal Procedures Manual Condition: The City did not have written policies, procedures and standards of conduct relative to federal awards as required by Uniform Guidance (2 CFR 200), Subparts D (Post Federal Award Requirements) and E (Cost Principles). Criteria: Uniform Guidance required nonfederal entities that receive federal awards establish written policies, procedures or standards of conduct. Cause: The City lacks written policies, procedures or standards of conduct required by the current federal regulations. Effect: Failure to establish these policies, procedures or standards of conduct puts the City. in noncompliance with Federal regulations and increases the likelihood of fraud, waste and abuse of federal funds. It also may increase the likelihood of findings in subsequent single audits due to lack of adequate internal controls. Auditor's Recommendation: We recommend that the City adopts written policies, procedures and standards of conduct relative to federal awards as required by Uniform Guidance. We have provided sample policies to review and consider. Management Response: The City has developed and adopted written grant procedures that are m accordance with the Uniform Guidance, effective 1/1/2023. Contact Person: Roxy Wedwick Anticipated Completion: December 31, 2023