Finding 1077502 (2023-002)

Condition-Prior to drawing down funds for this award from the Payment Management System, the company did not have formally documented policies and procedures for financial and business management systems. Criteria As indicated in the grant document prior to drawing down funds for this award from the Payment Management System, the company was required to have in place written policies and procedures for financial and business management systems that comply with the standards and requirements set forth in 45 CFR 75.302, as applicable, and must follow those policies and procedures for the duration of the project. Perspective Information – Subsequent to the year ended December 31, 2023, the Company obtained the services of a third-party consultant to formally document policies and procedures for financial and business management systems. These policies and procedures were completed and provided to the auditor at the beginning of the audit. Cause – Due to the company’s size and limited number of resources (3 employees) the initial policy that was created was limited and not sufficient to meet audit requirements. Effect or Potential Effect – The Company was not in compliance with the terms of the grant agreement.