Finding 1228584 (2025-003)

2025-003 Document Policies and Procedures Over Federal Awards Federal Program 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 • Cash management • Procurement • Conflicts of interest • Subrecipient monitoring and management Condition and Context The Town’s written policies and procedures related to federal awards required under Uniform Guidance do not include various required policies. Cause The Town has not developed written formal documentation of internal controls to encompass all required areas per the Uniform Guidance. Effect or Potential Effect The Town did not comply with the requirements of the Uniform Guidance over documented policies and procedures. Questioned Costs No questioned costs are reported as this requirement is procedural in nature. Identification as a Repeat Finding This is a repeat of finding 2023-002. Recommendation The Town should develop and implement policies and procedures related to federal awards in order to comply with the Uniform Guidance. Views of Responsible Official and Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.