Finding 1162348 (2024-001)

2024-001 Document Policies and Procedures over Federal Awards Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Award Year: 2024 Type of Finding Compliance Criteria or Specific Requirement OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“UG”) established requirements related to federal awards. The requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial program management. Specifically, written policies are required for the following: • Cash management • Determination of allowable costs • Employee travel • Procurement • Conflicts of interest • Subrecipient monitoring and management Condition and Context The Town has not formalized written policies and procedures related to federal awards as required under Uniform Guidance. Cause The Town has not developed written formal documentation of policies and procedures relative to grant federal requirements. Effect or Potential Effect There is a lack of formal documentation of policies and procedures related to federal awards as required by the Uniform Guidance. Recommendation The Town should ensure that written policies and procedures are compiled and adopted as soon as practicable to ensure compliance with Uniform Guidance. Views of Responsible Official See Corrective Action Plan.