CITY OF CAMDEN, ALABAMA

Criteria - Financial reports are required to be submitted within 90 days after the end of each fiscal year in which the grant is open. Condition - The City entered into a professional services contract with a grant administrator, the scope of which included preparation and submission of all reporting as required by the project. The grant administrator failed to timely submit, on behalf of the City, the financial reports. Effect - The Federal Financial Reports (SF-425) and the Outlay Report and Request for Reimbursement for Construction Programs (SF-271) for the 2019 and 2020 airport projects were not submitted within 90 days of September 30, 2020. Cause - The City?s policies and procedures over federal award reporting were not adequate and too much reliance was put on the external grant administrator. Recommendation - The City should strengthen its policies and procedures related to federal award reporting to comply with reporting requirements. Views of responsible officials - The City agrees with the finding. The City will implement additional oversight over the timely preparation and submittal of required grant reporting documents.

Criteria - Amounts reported on the Outlay Report and Request for Reimbursement for Construction Programs (SF-271) should be compiled using underlying accounting records and agreement to such records should be verified to determine reports are accurate and complete. Condition - The City reported an amount for the Federal shares of expenditures on the Outlay Report and Request for Reimbursement for Construction Programs (SF-271) for 2019 project that varied from the supporting accounting records. Effect - The City did not report an accurate amount on the Outlay Report and Request for Reimbursement for Construction Programs (SF-271) due to reporting the authorized amount instead of the actual amount. The Federal share of expenditures was overstated by approximately $14,000. Cause - The City?s policies and procedures over federal award reporting were not adequate. Recommendation - The City should strengthen its policies and procedures related to federal award reporting to comply with reporting requirements. Views of responsible officials - The City agrees with the finding. The City will implement additional review procedures over grant reporting requirements, including more adequate review of reports prepared by thirdparty grant administrators.

Criteria - 2 CFR 200.303, Internal Controls, requires that recipients establish and maintain effective internal control over Federal awards that provides reasonable assurance that the recipient is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Condition - In one instance, instructions attached to the Outlay Report and Request for Reimbursement for Construction Programs (SF-271) were not properly followed. In addition, reports were not submitted timely as required by the grant agreements between the City and the U.S. Department of Transportation. Effect - Several financial and nonfinancial items included in the federal award financial reports were inaccurately reported, which are described in the previous noncompliance findings. Cause - The City?s internal controls over federal award reporting were not adequate. There is a lack of monitoring and appropriate review by the City of the reports prepared by the external grant administrator. Recommendation - The City should strengthen its internal controls related to federal award reporting and should implement policies and procedures to monitor and review all reports prepared and submitted by the external grant administrator on behalf of the City. Views of responsible officials - The City agrees with the finding. The City will implement additional review procedures for all grant reporting.