Finding Text
Assistance Listing, Federal Agency, and Program Name 97.039, Hazard Mitigation Grant Program
Federal Award Identification Number and Year 4394-31, 2024
Pass through Entity South Carolina Emergency Management Division
Finding Type Material weakness and material noncompliance with laws and regulations
Repeat Finding No
Criteria In accordance with 2 CFR section 200.302(b)(6), all non federal entities must establish written procedures to implement the cash management requirements of 2 CFR section 200.305.
Condition The Organization did not have a formal cash management policy in place for the period under audit.
Questioned Costs None
If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported N/A
Identification of How Questioned Costs Were Computed N/A
Context After discussion with management, it was identified that the organization does not maintain a formal cash management policy.
Cause and Effect There is not an established control to ensure that a written policy is in place. Because there is no written policy, the Organization is not in compliance with 2 CFR 200.302(b)(6).
Recommendation We recommend that the Organization implement a formal cash management policy and that controls are implemented to ensure that it is maintained and updated, as necessary.
Views of Responsible Officials and Planned Corrective Actions The Organization implemented a Federal Awards Administration Policy which includes a formal cash management policy in February 2025.