Finding 499510 (2023-001)

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Requirement
ABCEFGHIJLMNP
Questioned Costs
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Year
2023
Accepted
2024-09-30
Audit: 322369
Organization: Town of Litchfield (NH)
Auditor: Marcum LLP

AI Summary

  • Core Issue: The Town lacks formal written policies and procedures for managing federal awards, violating compliance requirements.
  • Impacted Requirements: Key areas needing documentation include cash management, allowable costs, employee travel, procurement, conflicts of interest, and subrecipient monitoring.
  • Recommended Follow-Up: The Town should prioritize developing and adopting these written policies to meet compliance with Uniform Guidance.

Finding Text

2023-001 Document Policies and Procedures over Federal Awards Federal Program(s) Information Cluster/Program: All Federal Programs Award Year: 2023 Type of Finding Compliance Criteria or Specific Requirement OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) established significant requirements related to federal awards. The require-ments stipulate that federal award recipients must document their policies and procedures over certain aspects of financial program management. Specifically, written policies are required for the following: • Cash management • Determination of allowable costs • Employee travel • Procurement • Conflicts of interest • Subrecipient monitoring and management Condition and Context The Town has not formalized written policies and procedures related to federal awards as required under Uniform Guidance. Cause The Town has not developed written formal documentation of internal controls. Effect or Potential Effect There is a lack of formal documentation of internal controls as required by the Uniform Guidance. Recommendation The Town should ensure that written policies and procedures are compiled and adopted as soon as practicable to ensure compliance with Uniform Guidance. Views of Responsible Official See Corrective Action Plan.

Corrective Action Plan

Corrective Action Plan for Audit Finding Town of Litchfield Corrective Plan Information: Audit Finding Number: 2023-001 Finding: Document Policies and Procedures over Federal Awards Type of Finding: Compliance Criteria: OMB's Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) 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 program management. Specifically, written policies are required for the following: • Cash management • Determination of allowable costs • Employee travel • Procurement • Conflicts of interest • Subrecipient monitoring and management Corrective Action Taken Adoption of Policy "Federal Grant Acceptance and or to be Taken: Compliance Policy" by the Board of Selectmen and implementation across all departments. See attached Date of Completion or Policy Federal Grant Acceptance and Compliance Policy" estimated Date of Adopted by the Board of Selectmen August 12, 2024 Completion: Issued to all department heads 8/13/2024 Shared drive for grant documentation created and shared with department heads Town Purchasing Policy amended to include reference to Grant policy 8/12/2024. Policies updated on Town website - 8/14/2024 Management The Town of Litchfield agrees with the finding as no Response: formalized Policy or Procedures existed at the time of Audit. Town Contact Kim Kleiner Responsible for Town Administrator Corrective Action: 2 Liberty Way, Litchfield, NH 03052 603-424-4046 x1250 Email: kkleiner@litchfieldnh.gov

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Procurement, Suspension & Debarment Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $874,152
66.458 Capitalization Grants for Clean Water State Revolving Funds $4,463
14.218 Community Development Block Grants/entitlement Grants $2,921
97.067 Homeland Security Grant Program $2,839