Finding Text
Policies and Procedures over Federal Grants Condition: Internal controls over federal grants should be in place to provide reasonable assurance that a misstatement in the schedule of expenditures of federal awards would be prevented or detected.
Criteria: Non-federal entities who receive federal or state grants or have grant programs should have documented policies and procedures in place over grants and grant expenditures.
Cause: The Organization does not have documented policies and procedures in place over grants and grant expenditures.
Effect: Without documented policies and procedures, the internal control over federal grants is low, and the risk of misstatement in the schedule of expenditures of federal awards is high.
Auditor’s Recommendation: We recommend that the Organization work on written policies and procedures over grants and grant expenditures.
Management’s Response: The Organization will work with their auditor to develop and adopt written grant procedures that are in accordance with the Uniform Guidance.