Finding Text
Finding 2024-003: Material Weakness: Uniform Guidance Administrative Requirements
Criteria: Section 5.1 of the grant agreement incorporates 2 CFR Part 200, which establishes uniform administrative requirements, cost principles, and audit requirements for Federal awards (Uniform Guidance (UG) Administrative Requirements). UG administrative requirements puts emphasis on written policies and procedures as central in its objective to maintain effective internal controls over federal awards.
Condition: First Financial Credit Union did not develop written policies and procedures relating to the administration of its federal grant program.
Effect or potential effect: Lack of written policies could result in deficiencies relating to accountability, transparency or improper use of federal grant funds.
Recommendation: We recommend the Credit Union establish policies and procedures for its federal grant programs required by the grant agreement.
Questioned costs: None.
Views of responsible officials: Management agrees with the finding. Policies and procedures as described above will be established and implemented during the current year.