Finding Text
STATEMENT OF CRITERIA: THE ORGANIZATION DOES NOT MAINTAIN A FORMAL MANUAL FOR POLICIES AND PROCEDURES RELATED TO ACCOUNTING AND FINANCIAL REPORTING FOR FEDERAL GRANTS REQUIREMENTS. STATEMENT OF CONDITION: THE ORGANIZATION IS RESPONSIBLE FOR THE EFFICIENT AND EFFECTIVE ADMINISTRATION OF FEDERAL AWARDS THROUGH THE APPLICATION OF SOUND MANAGEMENT PRACTICES. STATEMENT OF CAUSE: THE ORGANIZATION DOES IN FACT MAINTAIN A FORMAL MANUAL FOR POLICIES RELATED TO ACCOUNTING AND FINANCE. THOSE POLICIES MAY BE DEFICIENT IN HOW THEY ADDRESS FEDERAL GRANT REQUIREMENTS DUE TO THE FACT THAT MANAGEMENT WAS OPERATING UNDER THE ERRONEOUS ASSUMPTION THAT IT DID NOT MEET THE SINGLE AUDIT THRESHOLD AND AS A RESULT IT DID NOT FORMALIZE POLICIES AND PROCEDURES AS THEY RELATE TO FEDERAL AWARDS. STATEMENT OF EFFECT: THE ORGANIZATION MAY NOT BE ABLE TO ENSURE EFFICIENT AND EFFECTIVE ADMINISTRATION OF FEDERAL AWARDS. STATEMENT OF EFFECT: THE ORGANIZATION MAY NOT BE ABLE TO ENSURE EFFICIENT AND EFFECTIVE ADMINISTRATION OF FEDERAL AWARDS. RECOMMENDATION: MANAGEMENT SHOULD FORMALLY DOCUMENT POLICIES AND PROCEDURES RELATED ACCOUNTING AND FINANCIAL REPORTING FOR FEDERAL GRANT REQUIREMENTS AND CONTINUE TO ENHANCE THESE FORMAL PRACTICES AND PROCEDURES ON A REGULAR BASIS AS DETERMINED NECESSARY. MANGEMENT RESPONSE: THE ORGANIZATION HAS RECENTLY HIRED A NEW CFO WITH EXTENSIVE EXPERIENCE MANAGING FEDERAL AWARDS. UPON REVIEW OF CURRENT FISCAL POLICIES AND PRACTICES, THE CFO WILL DEVELOP AND IMPLEMENT NEW WRITTEN POLICIES AND PROCEDURES RELATED TO ACCOUNTING AND FINANCIAL REPORTING AS THEY RELATE TO FEDERAL GRANT REQUIREMENTS. MANAGEMENT WILL SEEK INPUT FROM OUR INDEPENDENT AUDTING FIRM AS IT RELATES TO THE IMPLEMENTATION OF SAID POLICIES. THE MANAGEMENT TEAM'S GOAL IS TO HAVE DRAFT POLICIES AVAILABLE BY THE END OF SEPTEMBER 2024.