Finding Text
2022-001 Document Policies and Procedures Over Federal AwardsFederal Program(s) InformationCluster/Program: All federal programsType of FindingCompliance ? Other MattersCriteria or Specific RequirementOMB?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (UG) established significant requirements related to federal awards. Therequirements stipulate that federal award recipients must document their policies and proceduresover certain aspects of financial program management. Specifically, written policies are requiredfor the following compliance requirements:? Cash management? Determination of allowable costs? Program income? Eligibility determination? Equipment and real property management? Period of performance? Procurement? Subrecipient monitoring and managementCondition and ContextThe Town does not have written policies and procedures related to federal awards, as requiredunder the Uniform Guidance. Specifically, there are no formalized written policies for cashmanagement, allowable costs, program income/requesting reimbursement, eligibility determination,equipment and real property management, period of performance, procurement, orsubrecipient monitoring.CauseWeaknesses in the design of internal controls.11Effect or Potential EffectThe Town is not in compliance with the Uniform Guidance requirements for written policies andprocedures.Questioned CostsThere are no questioned costs as a result of this finding, as there are no costs directly associatedwith this compliance requirement and this is a procedural requirement under the UniformGuidance.Identification as Repeat FindingAs identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021-001.RecommendationThe Town should develop and implement written policies and procedures that are in compliancewith the requirements of the Uniform Guidance.Views of Responsible OfficialManagement agrees agree with the finding.Planned Corrective ActionManagement?s corrective action plan is included at the end of this report after the Schedule ofPrior-Year Audit Findings.