Finding Text
2024-004 - Allowable Costs/Cost Principles: Written Financial Policies
Federal Program Information:
US Department of Agriculture
Direct Award
ALN: - 10.760 Water and Waste Disposal Systems for Rural Communities
Criteria: Per 2 CFR Section 200.302(b)(6), and 200.302(b)(7), a non-federal agency
must establish written procedures related to the following: receipt of payment of federal
funds and determination of allowability of costs in accordance with Subpart E – Cost
Principles, respectively.
Condition: The Town has not formally adopted certain required written financial
management policies as outlined in the Code of Federal Regulations.
Cause: Town personnel were unaware of this requirement.
Effect: Transactions could occur that did not comply with federal regulations.
Identification of Questioned Costs: None identified.
Context: The finding was based on requesting the Town’s written financial policies
related to federal compliance and therefore was not the result of a statistical sample.
Repeat Finding: This is a repeat finding of 2023-001.
Recommendation: The auditor recommends that the Town obtain an understanding of
the required written policies in the Code of Federal Regulations as applicable to its
federal programs, create and formally adopt those required policies.
Views of Responsible Officials and Corrective Action Plan: Please see the
Corrective Action Plan issued by Town of Bridgewater, Vermont.