Finding Text
2025-002 (2024-004) – Written Policies and Procedures Type of Finding: (B) Significant Deficiency in Internal Control Over Financial Reporting Questioned Costs: None Condition During our test of controls, we noticed CWA did not have written policies and procedures in place related to financial controls. Cause Management has internal controls in place; however, they have not formalized the policies in writing and presented them to the appropriate staff. Effect The absence of formal, written internal control policies and procedures increases the risk that errors, noncompliance with federal program requirements, or misuse of federal funds could occur and not be prevented or detected in a timely manner. Recommendation We recommend management develop and implement written internal control policies and procedures to ensure compliance with federal program requirements and provide appropriate training to applicable staff. The procedures should include appropriate review, approval, and monitoring controls. View of Responsible Officials and Corrective Action Plan Management of CWA agrees with this finding and intends to develop and implement written internal control policies and procedures by December 31, 2026. Applicable employees will be trained in these policies and procedures by December 31, 2026.