Finding 618973 (2022-002)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-30

AI Summary

  • Core Issue: The Economic Development Alliance of St. Clair County lacks formal written policies required by the Uniform Guidance for federal awards.
  • Impacted Requirements: Key areas include allowability of costs, cash management, compensation, conflict of interest, procurement, technical evaluations, and travel policies.
  • Recommended Follow-Up: Update and implement necessary policies to meet Uniform Guidance standards by the end of fiscal year 2023.

Finding Text

Finding Type: Material weakness and noncompliance Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to allowability of costs [?200.302(b)(7)], cash management payments[?200.302(b)(6)], and compensation charged to federal programs [?200.430-431], Conflict of Interest Policy [?200.318(c)], procurement procedures [?200.319(c)], conducting technical evaluations of proposals and selecting participants [?200.320(d)D(3)], and travel policy [?200.474(b)]. Condition: Formal written policies for the compliance areas identified above have not been prepared in accordance with the Uniform Guidance. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, Economic Development Alliance of St. Clair County did not fully comply with the Uniform Guidance. Recommendation: We recommend that Economic Development Alliance of St. Clair County ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year 2023. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding.

Categories

Procurement, Suspension & Debarment Cash Management Material Weakness

Other Findings in this Audit

  • 42531 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
11.307 Economic Adjustment Assistance $518,238
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $181,071
21.027 Coronavirus State and Local Fiscal Recovery Funds $103,000