SHERBURNE-EARVILLE CENTRAL SCHOOL DISTRICT

2019-01 Federal Uniform Guidance Policies and Procedures Condition: The District currently has effective procedural controls in place over the management of Federal awards as concluded through the testing of grant expenditures. However, key changes under the Uniform Guidance expanded the rules regarding the documentation of internal controls over Federal Awards to require that they be documented in writing in the District?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. Cause: Unknown. Effect or Potential Effect: The District is more at risk of noncompliance with Federal Grant regulations related to Uniform Administrative Requirements by not having fully effective procedural controls in place. Known Questioned costs: None noted. Context: The District manages multiple federal programs in a single year. Repeat Finding: No. Recommendation: The District should document policies and procedures in accordance with the new Uniform Guidance. This should include monitoring procedures to ensure that internal controls over compliance for the various programs are working effectively. Response: Management has initiated the process of documenting policies and procedures in accordance with the new Uniform Guidance. This process will continue during the subsequent year.