Finding Text
Finding 2022-003 Document Policies and Procedures over Federal Awards Federal Programs Information Cluster/Program: All Federal Programs Award Year: 2022 Type of Finding Compliance ? Other Matters Criteria or Specific Requirement OMB?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UG) established significant requirements related to federal awards. The requirements stipulate that federal award recipients must document their policies and procedures over certain aspects of financial program management. Specifically, written policies are required for the following: ? Cash management ? Determination of allowable costs ? Employee travel ? Procurement ? Subrecipient monitoring and management DRAFT 3.29.2023 14 Condition and Context The Town has not formalized written policies and procedures related to federal awards as required under Uniform Guidance. Cause Weaknesses in the formal documentation of internal controls. Effect or Potential Effect The Town is not in compliance with the requirements of the Uniform Guidance. There are no questioned costs as a result of this finding as there are no costs directly associated with this compliance requirement and this is a procedural requirement. Identification as a Repeat Finding As identified in Section IV, the Schedule of Prior Year Findings, this is a repeat of finding 2021- 002. Due to the timing of the fiscal year 2021 finding (reported during fiscal year 2022), the Town was unable to implement changes during fiscal year 2022. Recommendation The Town should ensure that written policies and procedures are compiled and adopted as soon as practicable to ensure compliance with Uniform Guidance. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management?s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.