Finding Text
Reference Number: 2023-003 Federal Grant Policies and Procedures
Federal Agency: U.S. Department of Justice
Federal Program: OVW Technical Assistance Initiative – ALN 16.526
Compliance
Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Period of Performance, Reporting
Type of Finding: Material Weakness in Internal Control over Compliance
Criteria: Board of Directors approved policies and procedures should be in place to guide federally funded activities and outline requirements for federal grants to be followed by the Organization. This should include documented processes and related controls over the preparation and approval of the Schedule of Expenditures of Federal Awards (SEFA).
Statement of
Condition: The Organization currently does not have written policies and procedures to guide federally funded activities and related processes and controls over the preparation and approval of the SEFA.
Statement of Cause: Management has not developed formal policies and procedures over the administration of federal funds.
Possible Asserted
Effect: A lack of board approved policies and procedures could lead to improper administration of federal funds, noncompliance with federal grant requirements, or possible incorrect or incomplete information reported on the SEFA. Significant noncompliance could result in loss or reduction of federal funding received by the Organization.
Questioned Costs: None
Context: This is the first year the Organization was required to have a Single Audit and policies and procedures related to federal funds have not been requested previously.
Repeat Finding: N/A
Recommendation: Management should develop and have the Board of Directors approve formal policies and procedures over federal funding administration to include processes and controls over the preparation and approval of the SEFA. View of Responsible
Officials and Planned
Corrective Actions: We will develop formal policies and procedures over federal funding administration. This will include processes and controls over the preparation and approval of the SEFA. We will present the policies and procedures to our Board of Directors for approval.