Finding 7899 (2023-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-01-08
Audit: 10301
Organization: City of East Peoria, Illinois (IL)

AI Summary

  • Core Issue: The City failed to implement proper internal controls, allowing the same person to prepare and submit reports, leading to a missed submission.
  • Impacted Requirements: Compliance with the Uniform Grant Guidance, which mandates established internal controls over report submissions.
  • Recommended Follow-Up: The City should create a review process to ensure reports are approved before submission to prevent inaccuracies.

Finding Text

Finding No. 2023-003 — Reporting Federal Agency: Federal Emergency Management Agency Federal Program Title: Assistance to Firefighters Grant Federal Assistance Listing Number: 97.044 Award Period: September 8, 2021 through September 7, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matter Condition: The City did not apply the designed internal control over compliance, as the same person who was preparing reports, was also responsible for submitting the reports. Additionally, it was noted that 1 of 3 reports tested was not submitted. Criteria: The Uniform Grant Guidance requires the City establish and perform an internal control over compliance. Questioned Costs: None. Context: There was no review of reports before submission, which led to 1 of 3 reports tested not being submitted timely. Effect: The submitted reports could be incorrect. Cause: The City does not have proper internal controls in place regarding submission of reports. Repeat Finding: Finding was not repeated in the prior year. Recommendation: We recommend the City establish controls to ensure proper approval of reports before submission. Views of Responsible Officials: Management will meet with the grant Program Manager(s) to review and ensure all of the City’s Federal Grants Management Policies are being adhered to.

Corrective Action Plan

Management will meet with the grant Program Manager(s) to review and ensure all of the City’s Federal Grants Management Policies are being adhered to.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 7900 2023-004
    Significant Deficiency
  • 584341 2023-003
    Significant Deficiency
  • 584342 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
66.458 Capitalization Grants for Clean Water State Revolving Funds $1.68M
97.044 Assistance to Firefighters Grant $1.37M
21.027 Coronavirus State and Local Fiscal Recovery Funds $308,869
20.600 State and Community Highway Safety $38,796
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $10,511