TOWN OF WHITESTOWN, NEW YORKLocal Government

I. FINDINGS?FINANCIAL STATEMENT AUDIT None II. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS 2021-001 Federal Uniform Guidance Policies and Procedures Condition: The Town currently has effective procedural controls in place over the management of Federal awards as concluded through the testing of grant expenditures. However, key provisions of the Uniform Guidance rules regarding the documentation of internal controls over federal awards require that they be documented in writing in the Town?s policies and that management should evaluate and document the results of ongoing monitoring to identify internal control issues. The written internal controls should specifically address each of the applicable twelve (12) compliance requirements of the federal award programs. Criteria: On December 26, 2014 the Office of Management and Budget?s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, more commonly referred to as the ?Uniform Guidance,? became effective for all federal awards, whether the funds are provided directly from a federal agency or passed-through another state or local agency. Effect: The Town is more at risk of noncompliance with Federal Grant regulations related to Uniform Administrative Requirements by not having a fully effective procedural controls in place. Recommendation: The Town should document policies and procedures in accordance with the new Uniform Guidance. This should include monitoring procedures to ensure that internal controls over compliance are working effectively. Response: The Town Board will formally adopt the Federal Uniform Guidance Policies and Procedures as Town policy, as well as adopt monitoring procedures/procedural controls for federal awards. (