Finding 615825 (2022-003)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-07-17
Audit: 43974
Organization: City of Mauston, Wisconsin (WI)

AI Summary

  • Core Issue: The City lacks documented policies and procedures for managing federal grants, leading to weak internal controls.
  • Impacted Requirements: Non-federal entities must have policies to ensure accurate reporting of federal and state grant expenditures.
  • Recommended Follow-Up: The City should collaborate with auditors to create and implement written grant procedures that comply with Uniform Guidance.

Finding Text

Federal Procedures Manual Condition: Internal controls over federal grants should be in place to provide reasonable assurance that misstatements in the schedule of expenditures of federal awards would be prevented or detected. Criteria: Non-federal entities who receive federal or state grants or have grant programs should have documented policies and procedures in place over grants and grant expenditures. Cause: The City does not have documented policies and procedures in place over grants and grant expenditures. Effect: Without documented policies and procedures, the internal control over federal grants is low, and the risk of misstatement in the schedules of expenditures of federal and state awards is high. Auditor?s Recommendation: We recommend that the City work on written policies and procedures over grants and grant expenditures. Management Response: The City will work with their auditor to develop and adopt written grant procedures that are in accordance with the Uniform Guidance.

Categories

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 39383 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.19M
21.027 Coronavirus State and Local Fiscal Recovery Funds $360,428
20.509 Formula Grants for Rural Areas and Tribal Transit Program $50,026
10.664 Cooperative Forestry Assistance $644