Finding Text
#2022-002 ? Significant Deficiency: Grant and Contract Management Compliance Finding: Administrative Requirements of Uniform Guidance ? Administrative Policies This is a partial repeat of prior year finding #2021-002 Conditions and Criteria: Policies associated with Financial Management and Cash Management as they pertain to the management of federal awards are in need of enhancement to meet the administrative requirements of Uniform Guidance. Cause/Context: Catholic Charities West Michigan has general policies and procedures that are applicable to federal awards. However, there are additional unique policy requirements related to Financial Management and Cash Management that are key to the Organization?s federal programs. Recommendations: ? Catholic Charities West Michigan should consider the following written policy additions or updates: o Financial Management (200.302): written documentation of procedures for tracking federal awards by assistance number, grant amount, awarding agency, relationship (vendor/contractor vs. subrecipient), as well as the process for monitoring to ensure funding is not over or underspent. This will support the timely and accurate preparation of the SEFA. o Cash Management (200.302): A general policy and supporting procedures are required by Uniform Guidance in order to minimize the time that elapses between draw and expenditure of federal dollars. This is typically a compliance concern when funds are drawn prior to expenditure. Catholic Charities West Michigan adopted a Cash Management Policy and related procedures in February 2023. Views of Responsible Officials and Planned Corrective Actions: Catholic Charities West Michigan is in agreement with the recommendations of the auditors. A Cash Management policy was written and adopted in February 2023. The Financial Management policy is being drafted for Board approval no later than September 30, 2023.