Finding Text
Document Policies and Procedures Over Federal Awards 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 to 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 not have formal policies and procedures in place covering all requirements of Uniform Guidance as specified in 2 CFR Part 200. Certain elements, such as cash management, property and equipment management, internal control, and other compliance areas, were not addressed in written policies or documented procedures. Cause: The Organization 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, reduces consistency in federal program administration, and limits transparency and accountability. Questioned Costs:No questioned costs are reported. Identification as a Repeat Finding: This was not a finding in the prior year. Recommendation: Management of 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.