Finding 7900 (2023-004)

Significant Deficiency
Requirement
I
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 obtain proper approval for 2 out of 8 procurement transactions, indicating a significant deficiency in internal controls.
  • Impacted Requirements: The City did not comply with the Uniform Grant Guidance, which mandates established internal controls over procurement.
  • Recommended Follow-Up: The City should implement stronger controls to ensure all procurements receive necessary approvals before purchases are made.

Finding Text

Finding No. 2023-004 — Procurement (Continued) 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 Condition: During our testing of procurement, we noted certain items were purchased without review and approval. Criteria: The Uniform Grant Guidance requires the City establish and perform an internal control over compliance. Questioned Costs: None. Context: We noted that for 2 of the 8 procurements tested, proper approval was not obtained. Effect: The City did not follow their procurement policies. Cause: The City does not have proper internal controls in place regarding procurement policies. Repeat Finding: Finding was not repeated in the prior year. Recommendation: We recommend the City establish controls to ensure proper approval of procurements before purchases are made. 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

Procurement, Suspension & Debarment Significant Deficiency

Other Findings in this Audit

  • 7899 2023-003
    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