Finding Text
2023-005 Update Documented Policies and Procedures Over Federal Awards Federal Program(s) Information All federal programs Type of Finding Compliance – Other Matters Internal Control over Compliance – Significant Deficiency Criteria or Specific Requirement OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) 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: • Determination of allowable costs • Employee travel SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (CONTINUED) • Cash management • Procurement • Conflicts of interest • Subrecipient monitoring and management Condition and Context The City was unable to provide documented policies and procedures as it relates to federal awards. Cause The City has not developed written formal documentation of internal controls to encompass all required areas per the Uniform Guidance. Effect or Potential Effect Due to the weaknesses in internal controls noted above, the City did not comply with the requirements of the Uniform Guidance over documented policies and procedures. Questioned Costs No questioned costs are reported. Identification as a Repeat Finding This was not a finding in the prior year. Recommendation The City should address the weakness noted above and create policies and procedures related to federal awards in order to comply with the Uniform Guidance. Views of Responsible Official Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.