Finding Text
2025-002 Document Policies and Procedures Over Federal Awards Federal Agency: All Program: All AL Number: All Award Year: 2025 Type of Finding Compliance – Other Matter Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement Uniform Guidance (2 CFR Part 200) requires non-federal entities administering federal awards to establish and maintain written policies and procedures to address all requirements specified in the regulations, including but not limited internal controls, determination of allowable costs, procurement, subrecipient monitoring, financial management, and reporting. Condition and Context During our audit, we noted that the Town did have policies and procedures in place covering certain requirements of Uniform Guidance as specified in 2 CFR Part 200. Elements, such as internal controls, record retention, and compensation personal services, were not addressed in written policies or documented procedures. Cause The Town has not developed comprehensive written policies and procedures to address all compliance requirements under Uniform Guidance. Effect or Potential Effect The absence of complete written policies and procedures for all elements under Uniform Guidance increases the risk of noncompliance with federal requirements, and reduces consistency in federal program administration. Questioned Costs There are no questioned costs as a result of this finding as there are no costs directly associated with the finding. Recommendation The Town should develop and implement comprehensive written policies and procedures that address all major compliance requirements under Uniform Guidance (2 CFR Part 200). Periodic review and updates should be performed to ensure ongoing compliance. Views of Responsible Official and Planned Corrective Action Management’s corrective action plan is included at the end of this report.