Agenda - Council - 06/12/2018 - Laserfiche WebLink

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CITY OF RAMSEY Schedule of Findings and Questioned Costs (continued) Year Ended December 31, 2017 C. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE — DIRECT AWARD FROM THE U.S. DEPARTMENT OF THE INTERIOR, MISSISSIPPI NATIONAL RIVER AND RECREATION AREA STATE AND LOCAL ASSISTANCE, CFDA No. 15.941 2017-002 Internal Controls Over Compliance With Cash Management, Allowable Costs, and Standards for Financial Management Criteria — Title 2 U.S. Code of Federal Regulations (CFR) § 200.302(b)(5), (6), and (7) require the City to have written cash management procedures, which includes procedures for determining the allowability of costs in accordance with 2 CFR 200 Subpart E — Cost Principles, as well as a required written budget to actual comparison of expenditures for each federal award. Condition — During our audit, we noted that the City did not have documented written controls to ensure compliance with the U.S. Office of Management and Budget's (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) cash management, allowable costs, and financial management standards. Questioned Costs — None. Our testing did not indicate any instances of noncompliance. Context — The lack of written controls pertains to all federal grants. This was not a statistically valid sample. Repeat Finding — This is a current year finding. Cause — The implementation of the Uniform Guidance requirements for federal awards is relatively new to the City, and some internal control policies, including cash management, allowable costs, and financial management were not updated to reflect the necessary changes. Effect — This could be viewed as a violation of the award agreement. Recommendation — We recommend that the City review its internal control procedures relating to cash management, allowable costs, and financial management for all federal programs. The City should review the new Uniform Guidance to obtain a better understanding of the new requirements and identify any needed policy and procedure changes, in addition to those already referenced above. We also recommend the City adopt written policies pertaining to cash management, allowable costs, and financial management for all federal programs. The City should also document and perform regular budget to actual comparisons of expenditures for each federal award. View of Responsible Official and Planned Corrective Actions — The City agrees with the finding. The City has reviewed and updated its written policies and procedures relating to cash management, allowable costs, and financial management standards for its federal programs to ensure compliance with Uniform Guidance in the future. The District has separately issued a Corrective Action Plan related to this finding. -10-