FAC Explorer

Finding 520780 (2024-001)

Significant Deficiency
Requirement
ABCEFGHIJLMNP
Questioned Costs
-
Year
2024
Accepted
2025-01-30
Audit: 340575
Organization: Town of Hooksett (NH)
Auditor: Plodzik & Sanderson P A

AI Summary

  • Core Issue: The Town lacks formal written policies and procedures for managing Federal awards, violating OMB requirements.
  • Impacted Requirements: Key areas affected include allowable costs, employee travel, cash management, equipment, procurement, and subrecipient monitoring.
  • Recommended Follow-Up: The Town should develop and adopt the necessary policies and procedures promptly to comply with Uniform Guidance.

Finding Text

2024-001 Document Policies and Procedures over Federal Awards (Significant Deficiency) Cluster/Program: All Federal Programs Type of Finding: Compliance – Other Matters Internal Control over Compliance – Significant Deficiency 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 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: • Determination of allowable costs • Employee travel • Cash Management • Equipment and inventory • Procurement and Suspension and Debarment • Subrecipient monitoring and management. Condition: The Town has not formalized written policies and procedures related to Federal awards as required under Uniform Guidance. Cause: Weaknesses in the formal documentation of internal controls. Effect: There are no formal policies related to federal grant activity noted above. Questioned Costs: There are no questioned costs as a result of this finding as there are no costs directly associated with this compliance requirement. Identification as Repeat Finding: This is not a repeat finding. Recommendation: The Town should ensure that written policies and procedures are compiled and adopted as soon as practicable to ensure compliance with the Uniform Guidance. Views of Responsible Officials: Management’s views and corrective action plan is included at the end of this report.

Corrective Action Plan

Audit Finding Reference: 2024-001 Management’s Response and Planned Corrective Action: The Town acknowledges the need to formalize written policies and procedures to comply with Uniform Guidance requirements. We are in the process of developing and implementing comprehensive policies addressing allowable costs, employee travel, cash management, equipment and inventory, procurement, and subrecipient monitoring. Name of Contact Person and Completion Date: Name 1: Christine Tewksbury Name 2: Anticipated Completion Date – March 2025

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles Equipment & Real Property Management

Other Findings in this Audit

  • 520781 2024-001
    Significant Deficiency
  • 520782 2024-001
    Significant Deficiency
  • 520783 2024-001
    Significant Deficiency
  • 520784 2024-001
    Significant Deficiency
  • 520785 2024-001
    Significant Deficiency
  • 1097222 2024-001
    Significant Deficiency
  • 1097223 2024-001
    Significant Deficiency
  • 1097224 2024-001
    Significant Deficiency
  • 1097225 2024-001
    Significant Deficiency
  • 1097226 2024-001
    Significant Deficiency
  • 1097227 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $410,205
20.219 Recreational Trails Program $80,000
66.458 Clean Water State Revolving Fund $58,628
16.U01 FBI Safe Streets $16,051
16.607 Bulletproof Vest Partnership Program $4,783