Finding 22114 (2022-004)

-
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-07-19
Audit: 26278
Organization: Village of Honor (MI)
Auditor: Gabridge & CO

AI Summary

  • Core Issue: The Village lacks formal written policies required by the Uniform Grant Guidance for managing federal grants.
  • Impacted Requirements: Written policies are needed for cost allowability, cash management, procurement, and other financial activities.
  • Recommended Follow-Up: The Village should update and formalize these policies by the end of fiscal year 2023.

Finding Text

2022-004 - Written Policies Required by the Uniform Grant Guidance Finding Type: Immaterial Noncompliance Programs: Water and Waste Disposal Systems for Rural Communities (Assistance Listing Number 10.760) Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014, to have written policies pertaining to allowability of costs charged to federal programs, controlled activities over allowable costs and allowable activities, cash management, financial management, procurement, compensation/payroll, travel costs, and relocation cost of employees (?200.300 - 328)). Condition/Finding: Although the Village has processes in place to cover these areas, the Village lacks formal written policies covering these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the Village did not fully comply with the Uniform Guidance applicable to the above noted grants. Questioned Costs: No costs have been questioned as a result of this finding. Repeat Finding: No Recommendation: We recommend that the Village ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year 2023. View of Responsible Officials (Corrective Action): See corrective action plan.

Corrective Action Plan

Finding: 2022-004 ? Immaterial Noncompliance ? Written Policies Required by the Uniform Grant Guidance Auditor Description of Condition and Effect: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014, to have written policies pertaining to allowability of costs charged to federal programs, controlled activities over allowable costs and allowable activities, cash management, financial management, procurement, compensation/payroll, travel costs, and relocation cost of employees (?200.300 - 328)). This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Auditor Recommendation: We recommend that the Village ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year 2023. Corrective Action: The Village agrees to the condition/finding of written policies required by the Uniform Grant Guidance. Management and Village agrees Responsible Person: Anticipated Completion Date: December 31, 2023

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Cash Management Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 22113 2022-003
    Material Weakness
  • 598555 2022-003
    Material Weakness
  • 598556 2022-004
    -

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Waste Disposal Systems for Rural Communities $838,000