Finding Text
2022-003 Lack of Written Procedures for Federal Awards Condition: The Uniform Guidance requires nonfederal entities to have specific written policies and procedures as part of the management of their federal awards to reduce the risk of fraud, waste, and abuse of federal funds. Criteria: Written policies and procedures should be developed in advance of the entity receiving federal awards to make certain the federal statutes, regulations, and terms and conditions are followed. Cause: Management and the accounting staff of the Society are inexperienced in the policies and procedures required by the Uniform Guidance. Management and accounting staff were unaware that the Uniform Guidance required such written policies or procedures before the awarding of the SVOG. Effect: The Society relied on the instructions provided after the awarding of the SVOG and while expending the grant in allowable activities, with proper cost principles, and within the defined period of performance, they have a material weakness due to the lack of written policies and procedures. Questioned Costs: There were no questioned costs associated with this finding. Recommendation: We recommend management develop written policies and procedures in accordance to the requirements of the Uniform Guidance. This will allow the Society to be compliant should they be awarded federal funds in the future. Management?s Response ? See Corrective Action Plan