Finding 982446 (2023-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-07-02
Audit: 311562
Organization: City of Hutchinson (MN)
Auditor: Abdo LLP

AI Summary

  • Core Issue: The City lacks written procedures for managing Federal awards as required by the Uniform Guidance.
  • Impacted Requirements: This absence of documentation leads to non-compliance with Federal regulations and internal control standards.
  • Recommended Follow-Up: The City should create and implement formal written policies and procedures by 2024 to ensure compliance.

Finding Text

2023-001 Uniform Guidance Written Policies and Procedures Condition: During our audit, we discovered that the City has no developed written procedures required by the Uniform Guidance. Criteria: The City must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the City is managing Federal awards in compliance with Federal statues, regulations, and the terms and conditions of the Federal Awards. Cause: The City did not have written policies and procedures in place sufficient to comply with the Uniform Guidance requirements. Effect: The City was out of compliance with this requirement. Recommendation: The City should implement written policies and procedures to adhere to the above mentioned Uniform Guidance requirements. Management Response: The City has unwritten policies and procedures regarding federal grant monies, and is working to implement a formal policy in 2024.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 406000 2023-001
    Significant Deficiency
  • 406001 2023-001
    Significant Deficiency
  • 406002 2023-001
    Significant Deficiency
  • 406003 2023-001
    Significant Deficiency
  • 406004 2023-001
    Significant Deficiency
  • 982442 2023-001
    Significant Deficiency
  • 982443 2023-001
    Significant Deficiency
  • 982444 2023-001
    Significant Deficiency
  • 982445 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.06M
97.039 Hazard Mitigation Grant $661,626
20.106 Airport Improvement Program $606,709
16.607 Bulletproof Vest Partnership Program $3,586
93.959 Block Grants for Prevention and Treatment of Substance Abuse $400