Core Issue: The Town lacks formal written policies and procedures for managing federal awards, violating compliance requirements.
Impacted Requirements: Key areas needing documentation include cash management, allowable costs, employee travel, procurement, conflicts of interest, and subrecipient monitoring.
Recommended Follow-Up: The Town should prioritize developing and adopting these written policies to meet compliance with Uniform Guidance.
Finding Text
2023-001 Document Policies and Procedures over Federal Awards
Federal Program(s) Information
Cluster/Program: All Federal Programs
Award Year: 2023
Type of Finding
Compliance
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 require-ments 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:
• Cash management
• Determination of allowable costs
• Employee travel
• Procurement
• Conflicts of interest
• Subrecipient monitoring and management
Condition and Context
The Town has not formalized written policies and procedures related to federal awards as required under Uniform Guidance.
Cause
The Town has not developed written formal documentation of internal controls.
Effect or Potential Effect
There is a lack of formal documentation of internal controls as required by the Uniform Guidance.
Recommendation
The Town should ensure that written policies and procedures are compiled and adopted as soon as practicable to ensure compliance with Uniform Guidance.
Views of Responsible Official
See Corrective Action Plan.