Park Board of Trustees of the City of Galveston

FEDERAL AWARD FINDINGS 2022-03 Reporting Information on Federal Program: Gulf of Mexico Energy Security Act of 2006, Texas Natural Resource Code, Chapter 33, Coastal Management Program Project of Special Merit Criteria or Specific Requirement: 2 CFR 200.303 of the Uniform Guidance requires that non-Federal entities receiving Federal awards establish and maintain internal control over the Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Condition: The four monthly progress reports and final progress report selected for testing did not have any evidence of approval prior to the submission of the report. Questioned Cost: There are no questioned costs related to this finding. Context: In the testing of the monthly performance reports and final reports due upon completion and the request for reimbursement reports submitted to the grantor under the reporting compliance requirement, the Park Board was not able to provide evidence that such reports were approved prior to submission. Effect: The failure to maintain evidence of approval of a report may result in an inaccurate submission to the grantor which can lead to noncompliance with laws and regulations. Cause: The Park Board failed to maintain evidence that the required reports submitted to the grantor were approved by authorized personnel prior to submission. Recommendation: We recommend that the Park Board maintain evidence of approval by an authorized official of the reports and requests for reimbursements prior to submission to the grantor. Management Response: We agree with the finding. The procedure of maintaining appropriate evidence of approval prior to submitting quarterly reports and requests for reimbursement to the grantor will be implemented in fiscal year 2023.

The procedure of maintaining appropriate evidence of approval prior to submitting quarterly reports and requests for reimbursement to the grantor will be implemented in fiscal year 2023.