Finding Text
2022-001 Document Policies and Procedures Over Federal Awards Federal Program(s) Information Cluster/Program: All federal programs Type of Finding Compliance- Other Matters Criteria or Specific Requirement OMB?s Uniform Administrative Requirements. Cost Principles, and Audit Requirements for Federal Awards established significant requirements related to federal awards. The 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: Cash management Determination of allowable costs Program income Eligibility determination Equipment and real property management Period of performance Procurement Subrecipient monitoring and management Condition and Context The Town has not formalized written policies and procedures related to federal awards as required under the Uniform Guidance. Specifically, there are no formalized written policies for cash management, allowable costs, program income/requesting reimbursement, eligibility determination, equipment and real property management, subrecipient monitoring, and period of performance. Additionally, the existing written policies for procurement do not include standards of conduct over conflicts of interest and procedures for evaluating vendors for suspension and debarment, as required by the Uniform Guidance. Cause Weakness in the design of internal controls. Effect or Potential Effect There are no questioned costs as there are no costs directly associated with this compliance requirement, and this is a procedural requirement under the Uniform Guidance. Recommendation The Town should address the weakness in internal controls noted above in order to comply with the Uniform Guidance. Views of Responsible Officials Management agrees with the finding and management?s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.