MIDLAND CITY, ALABAMA

Item 2021-003 Uniform Guidance Written Policies, Procedures and Standards of Conduct (Repeat Finding) Water and Waste Disposal Systems for Rural Communities #10.760 US Department of Agriculture Federal Award ID Number ? N/A Awarded during the Year-Ended September 30, 2018 Condition ? The City?s written policies, procedures and standards of conduct do not conform to the requirements of the Uniform Guidance. Criteria ? Grantees should have written policies, procedures, and standards of conduct as required by 2 CFR 200, Subparts D & E of the Uniform Guidance. 2 CFR 200, Subparts D & E requires the non-Federal entity to establish and maintain written policies, procedures, and standards of conduct including internal controls over the Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award. Specific requirements relate to the following: ? ? 200.302 Financial management ? ? 200.305 Payment ? ? 200.319 Competition ? ? 200.320 Methods of procurement to be followed ? ? 200.430 Compensation?personal services ? ? 200.431 Compensation?fringe benefits Cause ? The City has not fully complied with the requirements to prepare written policies, procedures, and standards of conduct as required by 2 CFR 200, Subparts D & E of the Uniform Guidance. Questioned Costs ? Not determinable Effect ? Lack of written policies, procedures, and standards of conduct could result in noncompliance related to federal awards. Recommendation ? We recommend that the City update its written policies, procedures, and standards of conduct to include all the required elements as provided in 2 CFR 200, Subparts D & E of the Uniform Guidance. Management?s Response ? Management is in agreement with the finding noted and is in the process of formally updating its written policies and procedures to ensure that they conform to the requirements contained in the Uniform Guidance.

2021-003 Uniform Guidance Written Policies, Procedures and Standards of Conduct ? Management?s Response Recommendation: We recommend that the City update its written policies, procedures, and standards of conduct to include all the required elements as provided in 2 CFR 200, Subparts D & E of the Uniform Guidance. Action Taken: Management is in the process of formally updating its written policies and procedures to ensure that they conform to the requirements contained in the Uniform Guidance. Anticipated Completion: September 30, 2022 Responsible Party: Linda Spurlock, Assistant City Clerk

2020-004

Item 2020-004 Uniform Guidance Written Policies, Procedures and Standards of Conduct Water and Waste Disposal Systems for Rural Communities #10.760 US Department of Agriculture Condition ? The City?s written policies, procedures and standards of conduct do not conform to the requirements of the Uniform Guidance. Criteria ? Grantees should have written policies, procedures, and standards of conduct as required by 2 CFR 200, Subparts D & E of the Uniform Guidance. 2 CFR 200, Subparts D & E requires the non-Federal entity to establish and maintain written policies, procedures, and standards of conduct including internal controls over the Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award. Specific requirements relate to the following: ? ? 200.302 Financial management ? ? 200.305 Payment ? ? 200.319 Competition ? ? 200.320 Methods of procurement to be followed ? ? 200.430 Compensation?personal services ? ? 200.431 Compensation?fringe benefits Cause ? The City has not fully complied with the requirements to prepare written policies, procedures, and standards of conduct as required by 2 CFR 200, Subparts D & E of the Uniform Guidance. Questioned Costs ? Not determinable Effect ? Lack of written policies, procedures, and standards of conduct could result in noncompliance related to federal awards. Recommendation ? We recommend that the City update its written policies, procedures, and standards of conduct to include all the required elements as provided in 2 CFR 200, Subparts D & E of the Uniform Guidance. Management?s Response ? Management is in agreement with the finding noted and is in the process of formally updating its written policies and procedures to ensure that they conform to the requirements contained in the Uniform Guidance.

2020-004 Uniform Guidance Written Policies, Procedures and Standards of Conduct ? Management?s Response Recommendation: We recommend that the City update its written policies, procedures, and standards of conduct to include all the required elements as provided in 2 CFR 200, Subparts D & E of the Uniform Guidance. Action Taken: Management is in the process of formally updating its written policies and procedures to ensure that they conform to the requirements contained in the Uniform Guidance. Anticipated Completion: September 30, 2021 Responsible Party: Linda Spurlock, City Clerk