Finding 576084 (2024-003)

2024-003 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Procurement and Suspension and Debarment Criteria or specific requirement Entities are required to have written policies, procedures, and standards of conduct per 2 CFR 200, Subparts D and E. Condition During inquiry of Church management, it was determined that the Church did not have the required written policies. Context Although the Church operates based on procedures and controls that were sufficient to prevent any known noncompliance, those procedures and controls should be turned into a formal policy. Cause The Church has not received large amounts of federal funding in the past, and, as a result, it was not aware of the requirement. Effect The Church did not have the required written policies in place. Recommendation We recommend that the Church’s written policies be updated to properly reflect all requirements. Views of responsible officials See corrective action plan.