Finding Text
2022-002 ? Policies and Procedures for Federal Awards Federal Agency Department of Commerce Federal Assistance Listing Number 11.307 ? Economic Adjustment Assistance Federal Award Identification Number 08-79-05527 116374 Federal Award Years 2021-2026 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 to ensure compliance with relevant requirements. Condition The Medical Center 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 an isolated instance. Effect There is a risk federal funds may be expended out of conformity with federal regulations and compliance requirements. Cause The Medical Center did not develop written policies and procedures over relevant internal controls as of June 30, 2022. Recommendation We recommend the Medical Center 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 The Medical Center complied with all federal requirements for spending federal funds by reviewing related grant agreements and consulting with representatives from relevant federal agencies. Management acknowledges the lack of written policies and procedures, and are in the process of developing such, and anticipate having written federal procurement policies and procedures in place within 60 days of issuance of this report. The CFO will be responsible for resolving this finding by March 31, 2023.