Audit 28078

FY End

2022-09-30

Total Expended

$1.31M

Findings

2

Programs

1

Organization: Village of Clearwater, Nebraska (NE)

Year: 2022 Accepted: 2023-04-06

Auditor: Hbe LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
32395	2022-004	Significant Deficiency	-	I
608837	2022-004	Significant Deficiency	-	I

ALN	Program	Spent	Major	Findings
10.760	Water and Waste Disposal Systems for Rural Communities	$1.31M	Yes	1

Contacts

Name	Title	Type
JT2DL2JDBPK3	Angie Hupp	Auditee
4024852365	Rose Pinkman	Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Village of Clearwater, Nebraska and is presented on the cash basis of accounting. Grant awards are considered expended when the expense transactions associated with the grant are paid. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Village of Clearwater did not elect to use the ten percent de minimis indirect cost rate as allowed in the Uniform Guidance, 2 CFR 200.414.

Finding Details

Finding 2022-004

2022-004 Significant Deficiency in Internal Controls over Compliance for Procurement, Suspension and Debarment Identification data: U.S. Department of Agriculture (USDA) Water and Waste Disposal Systems for Rural Communities ? grants, Assistance Listing No. 10.760 Criteria: Part 2 CFR 300.318 states that the non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in ?? 200.317 through 200.327. Additionally, the non-Federal entity must maintain written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Condition and Context: The Village of Clearwater, Nebraska does not have a formal documented policy regarding procurement, suspension, and debarment transactions. Additionally, the Village does not have a written standards of conduct covering conflicts of interest and governing the performance of its employees engaged in the selection, award, and administration of contracts. Cause: A breakdown in the Village?s internal controls over procurement, suspension and debarment did not allow the Village to comply with the standards. Effect or potential effect: The control deficiency is a significant deficiency that may prevent the Village from complying with the procurement, suspension, and debarment requirements of the award agreements. Recommendation: The Village?s management and Board should develop formal written policies and procedures for procurement, suspension and debarment transactions. Additionally, the Village should adopt written standards of conduct covering conflicts of interest. Views of Responsible Officials: The Village of Clearwater, Nebraska?s management and Board will work on developing formal written procedures for procurement, suspension and debarment transactions. Additionally, the Village will adopt written standards of conduct covering conflicts of interest.

Finding 2022-004

2022-004 Significant Deficiency in Internal Controls over Compliance for Procurement, Suspension and Debarment Identification data: U.S. Department of Agriculture (USDA) Water and Waste Disposal Systems for Rural Communities ? grants, Assistance Listing No. 10.760 Criteria: Part 2 CFR 300.318 states that the non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in ?? 200.317 through 200.327. Additionally, the non-Federal entity must maintain written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Condition and Context: The Village of Clearwater, Nebraska does not have a formal documented policy regarding procurement, suspension, and debarment transactions. Additionally, the Village does not have a written standards of conduct covering conflicts of interest and governing the performance of its employees engaged in the selection, award, and administration of contracts. Cause: A breakdown in the Village?s internal controls over procurement, suspension and debarment did not allow the Village to comply with the standards. Effect or potential effect: The control deficiency is a significant deficiency that may prevent the Village from complying with the procurement, suspension, and debarment requirements of the award agreements. Recommendation: The Village?s management and Board should develop formal written policies and procedures for procurement, suspension and debarment transactions. Additionally, the Village should adopt written standards of conduct covering conflicts of interest. Views of Responsible Officials: The Village of Clearwater, Nebraska?s management and Board will work on developing formal written procedures for procurement, suspension and debarment transactions. Additionally, the Village will adopt written standards of conduct covering conflicts of interest.