What does the Uniform Guidance say about Internal Controls?
Non-Federal entities are required to establish internal control systems which ensure that all transactions are recorded and accounted for, and are in compliance with Federal statues, regulations and the terms and conditions of the Federal award. Funds, property and other assets must be safeguarded against unauthorized use or disposition. An effective internal control system will ensure the
non-Federal entity’s activities and use of Federal funds are compliant through ongoing monitoring and evaluation, taking prompt action when instances of non-compliance are identified. Mechanisms to protect information considered sensitive according to Federal, State, and local laws regarding privacy and obligation of confidentiality, including personally identifiable information, must also be built into the internal control system of the non-Federal entity.
non-Federal entity’s activities and use of Federal funds are compliant through ongoing monitoring and evaluation, taking prompt action when instances of non-compliance are identified. Mechanisms to protect information considered sensitive according to Federal, State, and local laws regarding privacy and obligation of confidentiality, including personally identifiable information, must also be built into the internal control system of the non-Federal entity.