Sandy City

General Services Administration Federal Financial Assistance Listing 39.003 Donation of Federal Surplus Personal Property (Donated Property) Preparation of Expenditures of Federal Awards Material Weakness in Internal Control Over Compliance Criteria: Title 2 Code of Federal Regulations Part 200.502 requires the City to prepare a Schedule of Expenditures of Federal Awards (SEFA) that includes all the federal awards expended during the year including the receipt of surplus property. Condition: The original SEFA provided to the auditors for major program determination did not include the Mine-Resistant Ambush Protected (MRAP) vehicle donation received under the Donated Property program. Cause: The City’s internal controls related to preparation of the SEFA did not determine that the donated MRAP should be included in the schedule of expenditures of federal awards. Effect: The SEFA did not include the donated property program. Questioned Costs: None reported. Context/Sampling: Not applicable, sampling was not used. Repeat Finding from Prior Year(s): No Recommendation: We recommend that the City enhance internal controls to ensure all program expenditures are appropriately included on the SEFA. Views of Responsible Officials: This was an unusual transaction and not a literal expenditure. We will continue to provide training on federal expenditures and items included in the SEFA and conduct in-depth research on unusual items as they happen.

Finding 2023-002 Federal Agency Name: General Services Administration Program Name: Donation of Federal Surplus Personal Property (Donated Property) CFDA #39.003 Finding Summary: The original Schedule of Federal Expenditures provided to the auditors did not include all expenditures made during the reporting periods they selected for testing. Responsible Individuals: Helen Kurtz, City Treasurer Corrective Action Plan: This was a result of donated property where the was an unusual transaction and not a literal expenditure. We will continue to provide training on Federal expenditures and items included in SEFA and conduct in-depth research on unusual items as they happen. Anticipated Completion Date: 9/2024