Audit 291300

Finding 2023-01 – No Written Policies or Procedures, or Standards of Conduct Relative to Federal Awards Criteria – Written policies, procedures, or standards of conduct relative to federal awards are required by 2 U.S. Code of Federal Regulations (CFR) Part 200: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subparts D and E (Sections 2 CFR 200.300 and 200.400, respectively.) Condition – Sanitation District No. 1 does not have formalized written policies, procedures, or standards of conduct relative to federal awards. Effect – Effective and consistent internal control over compliance relative to federal awards cannot be maintained and monitored without written policies, procedures or standards of conduct. Recommendation – Sanitation District No. 1 should prepare written policies, procedures, or standards of conduct that document internal controls necessary to ensure compliance over the expenditure of federal awards. Management’s Response – Management will prepare written policies to ensure internal control over compliance is documented.

Finding 2023-002 – Lack of Internal Control Over Financial Reporting – Inability to Produce a Schedule of Expenditure of Federal Awards Criteria – Entities that expend Federal funds in excess of $750,000 are each required to gain an understanding of the compliance requirements found in 2 C.F.R. 200 – Uniform Guidance for the specific Federal grant awards the entity receives. The entity should understand those compliance requirements and prepare a Schedule of Expenditure of Federal Awards. Condition – The City of Bellevue shows a lack of familiarity with the 2 C.F.R. 200 – Uniform Guidance compliance requirements and reporting requirements. Effect – This lack of familiarity with the compliance requirements may, in the future, allow funds to be used in a manner that is not consistent with Allowable Activities and Cost Principles in 2 C.F.R.200 – Uniform Guidance. Other compliance requirements such as Program Income, Eligibility, Cost Matching, Suspension/Debarment may also be affected. Recommendation – The City of Bellevue should gain an understanding of the compliance requirements for each federal award and prepare a Schedule of Expenditure of Federal Awards. Management’s Response – Management will utilize a consultant to gain an understanding of each federal award and to prepare a related Schedule of Expenditure of Federal Awards.

Finding 2023-01 – No Written Policies or Procedures, or Standards of Conduct Relative to Federal Awards Criteria – Written policies, procedures, or standards of conduct relative to federal awards are required by 2 U.S. Code of Federal Regulations (CFR) Part 200: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subparts D and E (Sections 2 CFR 200.300 and 200.400, respectively.) Condition – Sanitation District No. 1 does not have formalized written policies, procedures, or standards of conduct relative to federal awards. Effect – Effective and consistent internal control over compliance relative to federal awards cannot be maintained and monitored without written policies, procedures or standards of conduct. Recommendation – Sanitation District No. 1 should prepare written policies, procedures, or standards of conduct that document internal controls necessary to ensure compliance over the expenditure of federal awards. Management’s Response – Management will prepare written policies to ensure internal control over compliance is documented.

Finding 2023-002 – Lack of Internal Control Over Financial Reporting – Inability to Produce a Schedule of Expenditure of Federal Awards Criteria – Entities that expend Federal funds in excess of $750,000 are each required to gain an understanding of the compliance requirements found in 2 C.F.R. 200 – Uniform Guidance for the specific Federal grant awards the entity receives. The entity should understand those compliance requirements and prepare a Schedule of Expenditure of Federal Awards. Condition – The City of Bellevue shows a lack of familiarity with the 2 C.F.R. 200 – Uniform Guidance compliance requirements and reporting requirements. Effect – This lack of familiarity with the compliance requirements may, in the future, allow funds to be used in a manner that is not consistent with Allowable Activities and Cost Principles in 2 C.F.R.200 – Uniform Guidance. Other compliance requirements such as Program Income, Eligibility, Cost Matching, Suspension/Debarment may also be affected. Recommendation – The City of Bellevue should gain an understanding of the compliance requirements for each federal award and prepare a Schedule of Expenditure of Federal Awards. Management’s Response – Management will utilize a consultant to gain an understanding of each federal award and to prepare a related Schedule of Expenditure of Federal Awards.