THE UTICA CENTER FOR DEVELOPMENT, INC.

Federal Uniform Guidance Policies and Procedures Condition: The Organization currently does not have written internal controls to specifically address the 12 compliance requirements of Federal award programs. The Uniform Guidance possesses rules regarding the documentation of internal controls over Federal Awards to require that they be documented in writing in the Organization’s policies and that management should evaluate and document the results of ongoing monitoring to identify internal control issues. 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 Organization 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 Organization’s main revenue source is a Federal Grant. Repeat Finding: No. Recommendation: The Organization should document policies and procedures in accordance with the Uniform Guidance. This should include monitoring procedures to ensure that internal controls over compliance for the various programs are working effectively. Managements Response: The Organization will develop policies and procedures for Uniform Guidance. Policies and procedures will be documented and monitored to ensure internal controls over compliance are working effectively. Status: Noted again in the current year.

Federal Uniform Guidance Policies and Procedures Condition: The Organization currently does not have written internal controls to specifically address the 12 compliance requirements of Federal award programs. The Uniform Guidance possesses rules regarding the documentation of internal controls over Federal Awards to require that they be documented in writing in the Organization’s policies and that management should evaluate and document the results of ongoing monitoring to identify internal control issues. 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 Organization 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 Organization’s main revenue source is a Federal Grant. Repeat Finding: No. Recommendation: The Organization should document policies and procedures in accordance with the Uniform Guidance. This should include monitoring procedures to ensure that internal controls over compliance for the various programs are working effectively. Managements Response: The Organization will develop policies and procedures for Uniform Guidance. Policies and procedures will be documented and monitored to ensure internal controls over compliance are working effectively.