Finding 619298 (2022-001)

Criteria: A non-federal entity receiving federal funds is required to document and maintain internal control memos related to compliance requirements for federal awards. Condition: During 2022, internal control memos were not formally documented to the extent the Uniform Guidance standards require. Cause: While there is a procurement policy, it does not include all the requirements specified by Uniform Guidance to ensure compliance with federal programs. Effect: Weak internal controls can result in fraud and noncompliance of federal awards. Questioned costs: There were no questioned costs noted. Context: Testing of procurement policies. Repeat Finding: This is not a repeat finding from the prior year as the most recent prior year did not require a single audit. Recommendations: We recommend that management and the Board of Directors perform a risk assessment to consider additional procedures that need to be implemented, considering recommendations provided throughout the audit, and a review of Uniform Guidance requirements. We also recommend that the policy be reviewed and updated accordingly as new thresholds of procurement are reached. Views of responsible official: Management agrees with the finding and will implement adn document the appropriate controls. See client's corrective action plan.