Finding 58397 (2022-001)

2022-001 Policies and Procedures for Federal Awards Federal Agency Department of Health and Human Services Federal Assistance Listing Number 93.155 ? Rural Health Research Center Award Numbers HC2856 Criteria [ ] Compliance Finding [ X ] Significant Deficiency [ ] Material Weakness Recipients of federal awards should maintain written policies and procedures for the tracking and usage of federal awards. Condition The District did not have written procurement policies and procedures with all of the required elements for federal awards for the year ended June 30, 2022. Context This finding appears to be a systemic problem. Cause Management is still developing and implementing internal controls as of June 30, 2022. Effect There is a risk that federal funds may be expended out of conformity with federal regulations and compliance requirements. Recommendation We recommend the District write policies and procedures for the tracking and usage of federal awards that conform to federal regulations and compliance requirements. Views of responsible officials and planned corrective actions We did not have a written policy and procedure in place for federal awards at year-end. Upon discovery, we have created required policies and procedures and have implemented them to our organization.