Finding Text
Criteria 2 CFR Section 200.303 requires nonfederal entities to establish and maintain effective internal control over federal awards that provides reasonable assurance that the awards are being managed in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition The City was unable to provide documentary evidence illustrating its adherence to its written grant administration policies pertaining to supervisory review of grant reimbursement requests prepared by City staff prior to submission to the grant funding agency. Cause Grant reimbursement requests were not properly reviewed on a timely basis by supervisory personnel. Effect Key controls over compliance with federal award programs were not functioning as designed. Context There were two instances in which the City submitted a reimbursement request for costs previously reimbursed by the grant funding agency under the federal award. However, the funds requested in error were subsequently discovered and returned to the grant funding agency. Questioned Costs None Recommendation The City should adhere to its written policies and procedures regarding supervisory review of grant reimbursement requests. In addition, we recommend that employees preparing and reviewing reimbursement requests initial or sign off on the payroll reports to provide evidence of their actions.