Finding 565822 (2023-001)

Document Policies and Procedures Over Federal Awards Federal Program Information Federal Agency: U.S. Department of Justice, U.S. Department of Health and Human Services Award Name(s): Crime Victim Assistance, Family Violence Prevention and Services/Domestic Violence Shelter and Supportive Services Assistance Listing Number(s): 16.575, 93.671 Award Year: 2023 Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management 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 based on the compliance requirements noted above: • Determination of allowable costs • Employee travel • Cash management 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 required 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’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.