Ouachita Council of Governments, Inc.

Reference # and Title: 2025-004 Reporting Federal Grantor/Program Name Award Year Assistance Listing No. Congressionally Mandated Projects 2024 66.202 Criteria or specific requirement: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Subpart D Section 306(b)(5) states "For all Federal Awards, the Federal agency or pass-through entity must accept any cost sharing funds (including cash and third-party in-kind contributions, and also including funds committed by the recipient, subrecipient, or third parties) as part of the recipient's or subrecipient's contributions to a program when the funds are not paid by the Federal Government under another Federal award, except where the program's Federal authorizing statute specifically provides that Federal funds made available for the program can be applied to cost sharing requirements of other Federal Programs." Condition found: The City had adequate local matching funds to meet the matching grant requirements for both grants. However, the claims for reimbursement report included funds as matching that were used as matching or cost reimbursement under another Federal grant. Context: The rnatching funds on the claims for reimbursement report was tested by comparing amounts reimbursed under another Federal grant. Possible asserted effect (cause and effect): Cause: Records that support federal grant reimbursements were not reviewed thoroughly to provide other local matching funds on the claims for reimbursement report. Effect: The claims for reimbursement report did not report matching funds correctly. Recommendation to prevent future occurrences: Underlying records that support Federal grant reimbursements and matching funds used should be reviewed carefully to mitigate the reporting of the same rnatching or reimbursement funds on more than one Federal grant. Origination date and prior year reference (if applicable): This finding originated in the fiscal year ended April 30, 2025. View of responsible official: See auditee prepared corrective action plan included later in this report as "Corrective Action Plan for Current Year Findings and Questioned Costs."

Reference # and Title: 2020-002 Cash Management on Federal Programs CFDA#, Federal Award Title, Federal Agency, Federal Award # and Year, and the name of Pass-Through Entity: This finding relates to: Federal Transit Cluster - CFDA# 20.507 for the Federal Award Years 2017 and 2018 received from Federal Agency: U.S. Department of Transportation. Airport Improvement Program - CFDA# 20.106 for the Federal Award Years 2017 and 2020 received from Federal Agency: U.S. Department of Transportation. Delta Regional Area Economic Development - CFDA# 90.201 for the Federal Award Year 2016 received from Federal Agency: Delta Regional Authority Criteria or specific requirement: In accordance with requirements of 2 CFR section 200.305, non-Federal entities must establish written procedures over cash management, which includes criteria of how the entity will minimize the time elapsing between the transfer from the federal awarding agency and the disbursement of funds for the program costs. Controls over cash management should include reviews over the claims for reimbursement before submission to the federal awarding agency as well as amounts being requested should be adequately recorded in the proper period. Condition found: In testing seven claims for reimbursement for the Federal Transit Cluster, it was noted that four claims for reimbursement were not approved before submission to the federal awarding agency. In addition, it was noted that two claims for reimbursement were not posted in the correct accounting period. In testing seven claims for reimbursement for the Airport Improvement Program, it was noted that one claim for reimbursement was not recorded in the correct accounting period and one claim for reimbursement did not agree with supporting documentation, which resulted in the City requesting more than the actual expenditures. In testing three claims for reimbursement for the Delta Regional Area Economic Development Program, it was noted that two claims for reimbursement included expenditures not posted in the correct accounting period. Context: Seventeen claims for reimbursement were selected for testing over the federal programs, which resulted in approximately 77% of the expenditures for the three programs reported on the schedule of expenditures of federal awards being tested. Possible asserted effect (cause and effect): Cause: The auditor was unable to determine the cause. Effect: The City is not in compliance with federal compliance requirements related to cash management. Recommendation to prevent future occurrences: The City should establish additional procedures over the federal programs to ensure all claims for reimbursements are adequately reviewed and approved. Furthermore, procedures should be established to ensure claims for reimbursement agree to supporting documentation and are adequately recorded and reported in the correct accounting period. Origination date and prior year reference (if applicable): This finding originated in the fiscal year ended April 30, 2020. View of responsible official: See auditee prepared corrective action plan included later in this report as ?Corrective Action Plan for Current Year Findings and Questioned Costs.?

2019-003 Reference # and Title: 2019-003 Airport Improvement Program ? Cash Management CFDA#, Federal Award Title, Federal Agency, Federal Award # and Year, and the name of Pass-Through Entity: This finding relates to the Airport Improvement Program - CFDA# 20.106 for the Federal Award Years 2017 and 2018 received from Federal Agency: U.S. Department of Transportation. Criteria or specific requirement: In accordance with requirements of 2 CFR section 200.305, non-Federal entities must establish written procedures over cash management, which includes criteria of how the entity will minimize the time elapsing between the transfer from the federal awarding agency and the disbursement of funds for the program costs. Condition found: In testing cash management, it was noted that the City?s written policy nor procedures over cash management address the amount of time between the transfer from the federal awarding agency and the disbursement of funds for the program costs. Although the amount of time isn?t reflected in the policy, the industry normal standards are three days between the time the transfer from the federal awarding agency was received and the payment of program costs, if the payment wasn?t paid before the monies were requested from the federal awarding agency. However, in testing ten disbursements, it was noted that, for three disbursements, the time between the transfer from the federal awarding agency and the payment of program costs was more than three days. Context: Ten expenditures tested, which represented 67% of the grant. Possible asserted effect (cause and effect): Cause: The auditor was unable to determine the cause. Effect: The City is not in compliance with federal compliance requirements related to cash management. Recommendation to prevent future occurrences: The City should establish written policies and procedures over cash management in order to eliminate uncertainty as well as establish quality control procedures to ensure the policies are being adhere to. Specifically, the City should define the number of days that they consider reasonable for payment of invoices/charges after the date of the collection of the Federal Award. Origination date and prior year reference (if applicable): This finding originated fiscal year end April 30, 2019. View of responsible official: See auditee prepared corrective action plan included later in this report as ?Corrective Action Plan for Current Year Findings and Questioned Costs.?

Reference # and Title: 2019-004 Airport Improvement Program ? Reporting CFDA#, Federal Award Title, Federal Agency, Federal Award # and Year, and the name of Pass-Through Entity: This finding relates to the Airport Improvement Program - CFDA# 20.106 for the Federal Award Years 2017 and 2018 received from Federal Agency: U.S. Department of Transportation. Criteria or specific requirement: Based on the grant award letter, the City is required to submit the SF-425, ?Federal Financial Report,? annually, due 90 days after the end of each federal fiscal year, which is December 31st. Condition found: The City did not submit the required annual reports for the open grants. Context: The City has two open grants under the AIP program. Possible asserted effect (cause and effect): Cause: The auditor was unable to determine the cause. Effect: The City is not in compliance with federal compliance requirements related to reporting. Recommendation to prevent future occurrences: The City should establish quality control procedures to ensure the federal reports are properly completed and submitted timely. Origination date and prior year reference (if applicable): This finding originated fiscal year end April 30, 2019. View of responsible official: See auditee prepared corrective action plan included later in this report as ?Corrective Action Plan for Current Year Findings and Questioned Costs.?

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