Audit 292707

Federal Program - Water and Waste Disposal Systems for Rural Communities (10.760); Procurement, Suspension, and Debarment; Criteria - Uniform Guidance requires entities that have federal expenditures to have a procurement policy in place that follows all federal requirements. Also, an entity should have controls in place to ensure vendors are not suspended or disbarred from receiving federal dollars.; Condition - During testing we noted that the city does not have a procurement policy that meets Uniform Guidance requirements. We also noted that the city doesn't have controls in place to ensure vendors are not suspended or disbarred from receiving federal funds.; Questioned Costs - None; Context - The City does not have a procurement policy in place that follows Uniform Guidance. The City also does not have procedures in place to ensure they do not enter into a contract with a vendor who is not suspended or disbared from federal dollars.; Cause - Oversight by staff.; Effect - There is an increased risk that the City could enter into a contract with a vendor that has an active exclusion from federal dollars.; Repeat finding - Yes. Prior audit finding 2021-005.; Recommendation - The City should update their procurement policy to include all federal requirements and implement procedures to ensure vendors are not suspended or disbarred from receiving federal dollars.; Views of Responsible Officials - The City agrees with the recommendation and will review its procurement policy.

Federal Program - Water and Waste Disposal Systems for Rural Communities (10.760); Reporting; Criteria - The Uniform Guidance states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor's report or nine months after the end of the audit period.; Condition - The City's December 31, 2022 reporting package was not filed with the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor's report or nine months after the end of the audit period.; Questioned Costs - None; Context - The City's December 31, 2022 reporting package was not filed with the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor's report or nine months of the City's year end.; Effect - Non-compliance with Uniform Guidance reporting requirements.; Cause - The information required to audit was not obtained until after the filing deadline.; Repeat finding - Yes. Prior audit finding 2021-006.; Recommendation - The City's audit should be completed within nine months of the fiscal year end to allow for timely submission fo the data collection form and reporting package.; Views of Responsible Officials - The City agrees with the recommendation.

Federal Program - Water and Waste Disposal Systems for Rural Communities (10.760); Activities Allowed and Unallowed, Allowable Costs/Cost Principles, Procurement, Suspension, and Debarment, Reporting; Criteria - To provide reasonable assurance that an entity is in compliance with grant requirements, an entity shoudl retain and file grant agreements.; Condition - The City was unable to produce a signed grant agreement between the City and USDA for their water and waste project.; Questioned Costs - None; Context - The City entered into a grant agreement with the USDA to fund their water and waste project but was not able to provide this documentation during audit.; Effect - There is an increased risk of non-compliance with grant requirements.; Cause - The City was unable to locate the signed grant.; Repeat finding - Yes. Prior audit finding 2021-007.; Recommendation - The City should retain and file all grant agreements.; Views of Responsible Officials - The City agrees with the recommendation.

Federal Program - Water and Waste Disposal Systems for Rural Communities (10.760); Procurement, Suspension, and Debarment; Criteria - Uniform Guidance requires entities that have federal expenditures to have a procurement policy in place that follows all federal requirements. Also, an entity should have controls in place to ensure vendors are not suspended or disbarred from receiving federal dollars.; Condition - During testing we noted that the city does not have a procurement policy that meets Uniform Guidance requirements. We also noted that the city doesn't have controls in place to ensure vendors are not suspended or disbarred from receiving federal funds.; Questioned Costs - None; Context - The City does not have a procurement policy in place that follows Uniform Guidance. The City also does not have procedures in place to ensure they do not enter into a contract with a vendor who is not suspended or disbared from federal dollars.; Cause - Oversight by staff.; Effect - There is an increased risk that the City could enter into a contract with a vendor that has an active exclusion from federal dollars.; Repeat finding - Yes. Prior audit finding 2021-005.; Recommendation - The City should update their procurement policy to include all federal requirements and implement procedures to ensure vendors are not suspended or disbarred from receiving federal dollars.; Views of Responsible Officials - The City agrees with the recommendation and will review its procurement policy.

Federal Program - Water and Waste Disposal Systems for Rural Communities (10.760); Reporting; Criteria - The Uniform Guidance states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor's report or nine months after the end of the audit period.; Condition - The City's December 31, 2022 reporting package was not filed with the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor's report or nine months after the end of the audit period.; Questioned Costs - None; Context - The City's December 31, 2022 reporting package was not filed with the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor's report or nine months of the City's year end.; Effect - Non-compliance with Uniform Guidance reporting requirements.; Cause - The information required to audit was not obtained until after the filing deadline.; Repeat finding - Yes. Prior audit finding 2021-006.; Recommendation - The City's audit should be completed within nine months of the fiscal year end to allow for timely submission fo the data collection form and reporting package.; Views of Responsible Officials - The City agrees with the recommendation.

Federal Program - Water and Waste Disposal Systems for Rural Communities (10.760); Activities Allowed and Unallowed, Allowable Costs/Cost Principles, Procurement, Suspension, and Debarment, Reporting; Criteria - To provide reasonable assurance that an entity is in compliance with grant requirements, an entity shoudl retain and file grant agreements.; Condition - The City was unable to produce a signed grant agreement between the City and USDA for their water and waste project.; Questioned Costs - None; Context - The City entered into a grant agreement with the USDA to fund their water and waste project but was not able to provide this documentation during audit.; Effect - There is an increased risk of non-compliance with grant requirements.; Cause - The City was unable to locate the signed grant.; Repeat finding - Yes. Prior audit finding 2021-007.; Recommendation - The City should retain and file all grant agreements.; Views of Responsible Officials - The City agrees with the recommendation.