Finding 627560 (2022-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-04-12
Audit: 48078
Organization: City of Headland (AL)

AI Summary

  • Core Issue: The City lacks written policies, procedures, and standards of conduct as required by federal guidelines.
  • Impacted Requirements: This affects compliance with 2 CFR 200, Subparts D & E, specifically regarding financial management and payment processes.
  • Recommended Follow-Up: The Commission should develop and implement the necessary written policies and procedures to ensure compliance with federal requirements.

Finding Text

Item 2022-001 Uniform Guidance Written Policies, Procedures and Standards of Conduct (Repeat Item 2019-001) U.S. Department of Agriculture Water and Waste Disposal Systems for Rural Communities Assistance Listing #10.760 Year Ended September 30, 2022 Criteria ? Grantees should have written policies, procedures, and standards of conduct as required by 2 CFR 200, Subparts D & E of the Uniform Guidance. 2 CFR 200, Subparts D & E requires the non-Federal entity to establish and maintain written policies, procedures, and standards of conduct including internal controls over the Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award. Specific requirements relate to the following: ? ? 200.302 Financial management ? ? 200.305 Payment Condition ? The City does not have written policies, procedures and standards of conduct. Cause ? The entity has failed to prepare written policies, procedures, and standards of conduct as required by 2 CFR 200, Subparts D & E of the Uniform Guidance. Questioned Costs ? Not determinable Effect ? Lack of written policies, procedures, and standards of conduct could result in noncompliance related to federal awards. Recommendation ? We recommend that the Commission prepare written policies, procedures, and standards of conduct to include all the required elements as provided in 2 CFR 200, Subparts D & E of the Uniform Guidance. Management?s Response ? The City will consider all recommendations.

Categories

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

Other Findings in this Audit

  • 51118 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Waste Disposal Systems for Rural Communities $592,000
20.106 Airport Improvement Program $32,000
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $15,203
45.310 Covid-19 Grants to States $14,190
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $7,384
20.600 State and Community Highway Safety $2,007
20.616 National Priority Safety Programs $1,084