Finding 1061715 (2023-002)

Document Policies and Procedures Over Federal Awards Cluster/Program: All federal programs Type of Finding Compliance Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) established significant new requirements related to federal Awards. The new requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial and program management. Specifically, written policies are required for the following: • Cash management • Determination of allowable costs • Employee travel • Procurement • Subrecipient monitoring and management Condition and Context The Town’s written policies and procedures related to federal awards required under Uniform Guidance do not include various required policies such as period of performance, procurement, and reporting. Cause Weaknesses in the design of internal controls. Effect or Potential Effect 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 Written policies and procedures should be implemented in accordance with the Uniform Guidance. Views of Responsible Official Management agrees with the finding.