MOUND CITY, ILLINOIS

Federal Program: Community Development Block Grant/State?s Program (14.228). U.S. Department of Housing and Urban Development passed through the Illinois Department of Commerce and Economic Opportunity. Criteria: Uniform Guidance requires policies related to cash management, cost allowability, procurement, and conflict of interest provisions, along with appropriate financial management systems and internal controls over federal awards to safeguard federal funds. Condition: Although no noncompliance with federal grant requirements was noted, the City did not have written policies and procedures over the components of grant administration. Cause: The City had no written policies and relied on each department head receiving grant funding to comply with all applicable compliance requirements. Effect: The federal government believes that not having written policies and procedures for grant administration increases the risk that the City will not comply with applicable compliance requirements. Questioned Costs: None. Context: Total federal grant expenditures totaled $1,154,515 during the year ended June 30, 2021. Repeat Finding: No. Recommendation: We recommend the City develop written policies and procedures related to cash management, cost allowability, procurement, and conflict of interest provisions for federal funds it receives. Views of Responsible Officials and Planned Corrective Actions: The City has already begun to develop the appropriate written policies in order to implement this recommendation.