Finding Text
2023-005 Noncompliance with Uniform Guidance Written Procedures Over Federal Grants (Significant
Deficiency – Noncompliance)
Criteria – 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards, §200.302 requires all non-federal entities receiving federal awards to develop written procedures to
implement the requirements to received federal payments and determine the allowability of costs.
Condition and Context – Audit procedures revealed that there was a written financial procedures document, but
that it contained no language regarding managing and complying with federal award requirements.
Cause – Lack of understanding relating to the requirements of federal awards under the Uniform Guidance.
Effect – Lack of documented controls over RLHT’s compliance with the Uniform Guidance creates an added risk of
noncompliance occurring.
Questioned Costs – None
Recommendations – RLHT should become familiar with the Uniform Guidance and seek additional training for those
staff involved in all phases of receiving payment on and expending of federal awards.
Views of Responsible Officials and Planned Corrective Actions – RLHT will add procedures to the current financial
policies document that contain oversight over the receipt and use of federal award funds.