FAC Explorer

Finding 609004 (2022-004)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-07-10
Audit: 27978
Organization: City of Whitewood (SD)
Auditor: Ketel Throstenson LLP

AI Summary

  • Core Issue: The City lacks written policies for allowable costs and cost principles related to the Community Development Block Grant.
  • Impacted Requirements: Uniform Guidance mandates that entities maintain these written policies to ensure compliance and avoid unallowable costs.
  • Recommended Follow-up: The City should develop and implement written policies for allowable costs and cost principles as agreed upon in their corrective action plan.

Finding Text

Finding No. 2022-004: Written Uniform Guidance Policies Federal Program Affected: Community Development Block Grant (ALN #14.228) Compliance Requirement: Allowable Costs/Cost Principles Questioned Costs: None Condition and Cause: The City does not have written policies for allowable costs/cost principles. Criteria and Effect: Uniform Guidance specifically requires entities to maintain written policies for allowable costs/cost principles. Not properly maintaining such policies leads to noncompliance and potential unallowable costs. Repeat Finding from Prior Year: No. Recommendation: The City should create written policies for allowable costs/cost principles. Response/Corrective Action Plan: The City is in agreement with the finding. See City?s Corrective Action Plan.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 32561 2022-001
    Material Weakness
  • 32562 2022-004
    Significant Deficiency
  • 609003 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $574,483
10.766 Community Facilities Loans and Grants $458,645
21.027 Coronavirus State and Local Fiscal Recovery Funds $177,048
20.600 State and Community Highway Safety $4,035