Finding Text
2022-002 Document Policies and Procedures Over Federal Awards
Federal Program Information
Federal Agency: U.S. Department of the Interior
Award Name: Natural Resource Stewardship; Cooperative Research and Training Programs – Resources of the National Park System
Assistance Listing Number(s): 15.944, 15.945
Award Year: 2022
Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Procurement, Subrecipient Monitoring
Type of Finding
Compliance
Internal Control over Compliance – Significant Deficiency
Criteria or Specific Requirement
OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial and program management. Specifically, written policies are required for the following:
• Determination of allowable costs
• Employee travel
• Cash management
• Procurement
• Conflicts of interest
Condition and Context
The Organization does not have written policies and procedures in place related to federal awards, as required under the Uniform Guidance.
Cause
The Organization has not developed written formal documentation of internal controls to encompass all applicable areas per the Uniform Guidance.
Effect or Potential Effect
Due to the weaknesses in internal controls noted above, the Organization did not comply with the requirements of the Uniform Guidance over documented policies and procedures. No questioned costs are reported as this requirement is procedural in nature.
Recommendation
The Organization should address the weakness noted above and create policies and procedures related to federal awards in order to comply with the Uniform Guidance.
Views of Responsible Official
Management agrees with the finding. Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.