CITY OF QUIMBY

Allowable Costs and Cost Principles Criteria ? The City of Quimby approved a procurement policy in order to comply with federal procurement regulations. Condition ? The City could not provide a proof of publication documenting that the City advertised that bids were being sought for the construction project estimated to cost in excess of $800,000. Cause ?Passage of time and employee turnover made locating the proof of publication impossible for the City. Effect ? The City?s could not document one of the controls used to help ensure that competitive bids were received. Recommendation ? The City should ensure record keeping procedures are followed to ensure all required documentation is maintained as required. Corrective Action ? We did provide the bid request that was used by the City. We will ensure in the future that all documentation regarding all City publications is maintained as required. Conclusion ? Response accepted.

Subrecipient Certifications Criteria ? As a subrecipient, the City of Quimby agreed to Certify that the City is a drugfree workplace. Condition ? The City has a common understanding that the City is a drug-free workplace, however it has not published a statement notifying all employees in writing that the City prohibits all drug-related activity in accordance with the grant agreement. Cause ?The City has always maintained a drug-free workplace. It was not aware of the requirements to provide the written statements required by the grant. Effect ? The City did not provide the required written statements to City employees. Recommendation ? The city should prepare all required statements and provide them to all employees as soon as possible. Corrective Action ? We will document the required statements and provide them to our employees. Conclusion ? Response accepted.

Single Audit Process Criteria ? Title 2, U.S. Code of Federal Regulations ?200.501 states that an entity that expends $750,000 or more during the non-Federal entity?s fiscal year in Federal awards, they must have a single audit or program-specific audit conducted for that year in accordance with the provision in ?200.501. Condition ? The City had over $750,000 in federal expenditures in the current year and did not request an audit in accordance with Uniform Guidance. Cause ?The City?s management did not track expenditures of federal awards for the year ended June 30, 2020 to determine what federal audit requirements applied if any. Effect ? The City?s program audit will not be completed in a timely manner. Recommendation ? The City should establish a process to track the dollar amount of federal expenditures that were spent during the year to determine if an audit in accordance with uniform guidance is required. Corrective Action ? The City will work on a formal process for tracking all federal grants. Conclusion ? Response accepted.

Monitoring and Reporting Program Performance Criteria ? Title 2, U.S. Code of Federal Regulations Part 200.329 Monitoring and Reporting Program Performance, the City was required to submit reporting program performance reports (1) The non-Federal entity must submit performance reports at the interval required by the Federal awarding agency or pass-through entity to best inform improvements in program outcomes and productivity. Condition ? The City?s management could not provide documentation that the 2nd quarter 2020 Public Assistance Progress Report was submitted. Cause ? Passage of time and employee turnover caused the City to be unable to prove that the report was submitted on time. Effect ? The City?s internal controls over reporting were deficient. Recommendation ? The City should submit the Public Assistance Progress Report on a timely basis and keep proper documentation. Corrective Action ? The City will submit the Public Assistance Progress Report on a timely basis and ensure all required documentation is maintained as required. Conclusion ? Response accepted.