CITY OF CAMDEN, ARLocal Government

CFDA NO. 21.019 Federal Agency US Department of Treasury Pass through agency Arkansas Department of Finance and Administration. Criteria: 2 CFR section 200.303 requires that non federal entities receiving federal awards (i.e.,auditee management) establish and maintain internal control designed to reasonably ensure compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition/ context The city relied on various employees to oversee compliance with federal awards but did not establish written internal control policies over federal awards to ensure compliance requirements were met. As a result, some supporting documentation for federal expenditures could not be located. Effect:Absence of adequate written internal controls over federal compliance requirements as required by Uniform Guidance could result in future non-compliance with federal awards. Questioned Costs: None Cause: The city did not establish adequate internal controls over federal compliance requirements as required by Uniform Guidance. Recommendation: The city should establish written internal controls policies for federal awards. Federal compliance requirements vary for each federal program; accordingly, the city should review compliance requirements specific to each federal program to ensure compliance with Uniform Guidance requirements prior to acceptance of the federal award.Views of Responsible Officials: The city will establish internal control policies over compliance for federal awards to ensure compliance with future awards. See Corrective Action Plan.