Finding Text
2023-001 Document Policies and Procedures Over Federal Awards
Federal Program(s) Information
Cluster/Program: All federal programs
Type of Finding
Compliance – Other Matters
Criteria or Specific Requirement
OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) established significant requirements related to Federal Awards. The requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial and program management. Specifically, written policies are required for the following:
• Cash management
• Determination of allowable costs
• Employee travel
• Procurement
• Subrecipient monitoring and management
Condition and Context
The Town has not formalized written policies and procedures related to federal awards required under Uniform Guidance.
Cause
Weakness in the design of internal controls.
Effect or Potential Effect
There are no questioned costs as a result of this finding as there are no costs directly associated with this compliance requirement, and this is a procedural requirement under the Uniform Guidance.
Recommendation
Written policies and procedures should be implemented in accordance with the Uniform Guidance.
Views of Responsible Official
Management agrees with the finding.
Planned Corrective Action
Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.