RECREATION AND PARK COMMISSION FOR THE PARISH OF EAST BATON ROUGELocal Government

Criteria: The Uniform Guidance requires written policies and procedures documenting how the organization determines and complies with the applicable compliance requirements. Condition: BREC does not currently maintain written policies and procedures for determining and documenting the applicable compliance requirements in accordance with 2 CFR 200.318-326. Questioned Costs: None. Cause: Written policies and procedures for the applicable compliance requirements have not been developed. Effect: Written policies and procedures over the applicable compliance requirements are not available to guide staff responsible for federal expenditures. Recommendation: We recommend that BREC develop written policies and procedures for determining and documenting the applicable compliance requirements under the Uniform Guidance. Repeat Finding: Yes. View of Responsible Official: A written SOP was developed for determining allowable costs and procurement requirements in accordance with the applicable CFR to guide key finance staff with responsibility for federally eligible expenditures.

Criteria: The Uniform Guidance requires written policies and procedures documenting how the organization determines and complies with the applicable compliance requirements. Condition: BREC does not currently maintain written policies and procedures for determining and documenting the applicable compliance requirements in accordance with 2 CFR 200.318-326. Questioned Costs: None. Cause: Written policies and procedures for the applicable compliance requirements have not been developed. Effect: Written policies and procedures over the applicable compliance requirements are not available to guide staff responsible for federal expenditures. Recommendation: We recommend that BREC develop written policies and procedures for determining and documenting the applicable compliance requirements under the Uniform Guidance. Repeat Finding: No. View of Responsible Official: While BREC currently does not have any federal expenses identified as unallowable costs applicable to this finding, a written SOP was recently developed for determining allowable costs and procurement requirements in accordance with the applicable CFR to guide key finance staff with responsibility for federally eligible expenditures.

Criteria: The Uniform Guidance requires written policies and procedures documenting how the organization determines the allowable costs eligible for reimbursement with federal funds as well as written policies and procedures documenting how the organization complies with the federal procurement standards. Condition: BREC does not currently maintain written policies and procedures for determining allowable costs and compliance with procurement requirements in accordance with 2 CFR 200.318-326. Questioned Costs: Not applicable. Cause: Written policies and procedures over allowable costs and procurement have not been developed. Effect: Written policies and procedures over allowable costs and procurement are not available to guide staff responsible for federal expenditures. Recommendation: We recommend that BREC develop written policies and procedures for determining allowable costs and for procurement under the Uniform Guidance. Management’s Response & Corrective Plan: (Unaudited) • While BREC currently does not have any federal expenses identified as unallowable costs applicable to this finding, a written SOP will be developed for determining allowable costs and procurement requirements in accordance with the applicable CFR to guide key finance staff with responsibility for federally eligible expenditures. o Anticipated Completion Date: July 31, 2024 o Responsable Contact Person: Rhonda Williams

The Office of Management and Budget (OMB) designated the Census Bureau as the National Clearinghouse (or Federal Audit Clearinghouse (FAC) for the receipt of Single Audit Reports from state and local governments (later to include nonprofit organizations). In this capacity, the Census Bureau serves as the central collection point and repository for audit reports prepared and submitted under provisions of the Single Audit Act of 1984 (amended in 1996), and Uniform Guidance. States, local governments, Indian Tribes or Tribal Organizations, institutions of higher education (IHEs), and nonprofit organizations that annually expend $750,000 or more in federal awards must perform a Single Audit and complete Form SFSAC for every fiscal period during which they meet the reporting dollar threshold. The central collection point for single audit reports is the Federal Audit Clearing House Internet Data Entry System (IDES) website. Without any waivers, the report is due no later than nine months after an entity’s year end. Condition: The single audit report with the Federal Audit Clearing House was not submitted in the timeline established by regulation. Questioned Costs: Not applicable. Cause: A software conversion and turnover in key staff resulted in general ledger accounts not being reconciled timely. This resulted in the performance of the singe audit being delayed. Effect: The lack of timely filing may result in delays or denial of federal grant assistance. Recommendation: The federal data collection form should be filed timely. Management’s Response & Corrective Plan: (Unaudited) • While BREC currently does not have any questioned costs applicable to this finding, we have initiated the advertisement for professional level accountants to fill key staff positions to ensure monthly reconciliations of bank accounts in order for the single audit to be performed, which will ultimately allow for timely submission of the Single Audit Report moving forward. o Anticipated Completion Date: September 30, 2024 o Responsable Contact Person: Rhonda Williams

United States Department of Homeland Security 97.036 FEMA Disaster Relief ? Public Assistance Compliance Area: Reporting 2019-002 Preparation of Schedule of Expenditures of Federal Awards and Written Policies and Procedures over Federal Grants Criteria: The Uniform Guidance Subpart F Section 200.510 requires the preparation of a Schedule of Expenditures of Federal Awards (SEFA) that includes an accurate reporting of federal awards expended based on the terms and conditions of the grants along with the amount of funds disbursed to subrecipients. In order for the SEFA to be prepared accurately and properly report the amounts expended for federal awards, a system of controls should be in existence that includes the timely preparation and review of the amounts reported on the SEFA. Additionally, the Uniform Guidance requires written policies and procedures documenting how the organization determines the allowable costs eligible for reimbursement with federal funds as well as written policies and procedures documenting how the organization complies with the federal procurement standards. Condition: The Commission did not maintain adequate internal records in order to prepare an accurate and complete reporting of federal awards expended without significant effort at year-end. The Commission does not currently maintain written policies and procedures for determining allowable costs and compliance with procurement requirements in accordance with 2 CFR 200.318-326. Questioned Costs: Not applicable. Cause: The accounting system is not designed to adequately track and record federal program grant expenditures and revenues accurately and with appropriate supporting documentation or reconciliations. As the Commission is relatively new to federal grant funding, written policies and procedures over allowable costs and procurement have not been developed. Effect: The SEFA provided for audit did not contain the correct amounts of federal expenditures supported by the accounting systemand significant audit adjustments were required.Written policies and procedures over allowable costs and procurement are not available to guide staff responsible for federal expenditures. Recommendation: We recommend the Commission review its policies and procedures for identifying, recording and tracking federal expenses and implement tools within the accounting system to properly identify in order to prepare an accurate SEFA. We also recommend that the Commission develop written policies and procedures for determining allowable costs and for procurement under the Uniform Guidance. Management?s Response & Corrective Plan: (Unaudited) See attached Corrective Action Plan.

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