Finding Text
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
Condition
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
Failure to have written Uniform Guidance policies and procedures constitute noncompliance with federal audit requirements and could impact subsequent federal funding. No questioned costs are reported as this requirement is procedural in nature.
Recommendation
The Organization should address the weakness noted above and develop policies and procedures related to federal awards in order to comply with the Uniform Guidance.
Views of Responsible Officials
Management’s corrective action plan is included at the end of this report.