Finding Text
Criteria: A local government should have the proper personnel in place to compile the Schedule of Federal Expenditures in accordance with the Office of Management and Budgets (OMB) Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Condition: The Schedule of Federal Expenditures prepared was not a complete listing of all Federal expenditures. Context: The City's Federal grant funding has increased significantly and the City does not have a responsible individual in charge of maintaining and reporting these federal grants. Effect: Failure to be able to prepare the City's Schedule of Federal Expenditures workbook would have resulted in an incorrect Single Audit selection of major programs to test in accordance with Federal guidelines. Cause: Reporting of Federal compliance is administered outside the Finance office. Recommendation: We recommend the Finance office be part of all federal reporting to ensure grants are reported timely and accurately. Management's response: Management will look to stregthen this control during the next fiscal year by evaluating employee's job responsibilities and having one employee be incharge of federal grants.