Finding 1057387 (2023-001)

2023-001 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance – Other Matters Criteria or Specific Requirement OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) established significant requirements related to federal awards. The requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial program management. Specifically, written policies are required for the following compliance requirements: • Cash management • Determination of allowable costs • Program income • Eligibility determination • Equipment and real property management • Period of performance • Procurement • Subrecipient monitoring and management Condition and Context The Town does not have written policies and procedures related to federal awards, as required under the Uniform Guidance. Specifically, there are no formalized written policies for cash management, allowable costs, program income/requesting reimbursement, eligibility determina¬tion, equipment and real property management, period of performance, procurement, or subrecipient monitoring. Cause Weakness in the design of internal controls. Effect or Potential Effect The Town is not in compliance with the Uniform Guidance requirements for written policies and procedures. 2023-001 Document Policies and Procedures Over Federal Awards (Continued) Questioned Costs There are no questioned costs as a result of this finding, as there are no costs directly associated with this compliance requirement and this is a procedural requirement under the Uniform Guidance. Recommendation The Town should develop and implement written procedures that are in compliance with the requirements of the Uniform Guidance. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.