Finding 970762 (2023-002)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-04-24
Audit: 304316
Organization: City of Groves, Texas (TX)

AI Summary

  • Core Issue: The City failed to properly monitor changes to grant requirements, specifically missing the BABA Act in bid documents.
  • Impacted Requirements: Timely monitoring of control activities is essential for compliance with grant conditions.
  • Recommended Follow-Up: Implement a system to regularly check for updates to grant requirements post-award.

Finding Text

2023‐002 – Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) United States Department of Treasury, Passed through the Texas Division of Emergency Management. Internal Control – Monitoring Criteria: Monitoring should be such that there is an assurance that control activities are being performed in a timely manner. Condition and Context: The procedures in place did not include proper monitoring of changes made to the program requirements. Cause: The City was not effectively monitoring for grant changes. Effect: The City did not include the Build America, Buy America (BABA) Act requirements in their August 3, 2022 bid documents. Recommendation: The City should take steps to monitor grants for changes made to the grant requirements after the grant has been awarded. View of Responsible Party: Management concurs with the recommendation. See corrective action plan.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Internal Control / Segregation of Duties

Other Findings in this Audit

  • 394319 2023-001
    Significant Deficiency
  • 394320 2023-002
    Significant Deficiency
  • 970761 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.76M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1.57M