FAC Explorer

Audit 299995

FY End
2023-06-30
Total Expended
$852,825
Findings
2
Programs
6
Organization: Town of Quartzsite, Arizona (AZ)
Year: 2023 Accepted: 2024-03-28
Auditor: Colby & Powell Plc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
388226 2023-002 Material Weakness - I
964668 2023-002 Material Weakness - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $628,384 Yes 1
20.509 Formula Grants for Rural Areas and Tribal Transit Program $154,852 - 0
97.067 Homeland Security Grant Program $22,702 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $16,093 - 0
20.600 State and Community Highway Safety $8,665 - 0
20.616 National Priority Safety Programs $4,688 - 0

Contacts

Name Title Type
HGGTPZUFKYN5 Kiki Tunnell Auditee
9289274333 Scott Graff Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual/accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Town of Quartzsite, Arizona has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Town of Quartzsite, Arizona has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Town of Quartzsite, Arizona under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town of Quartzsite, Arizona, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Quartzsite, Arizona.

Finding Details

Finding 2023-002
Criteria: When a non-federal entity enters into a covered transaction with an entity at a lower tier, the nonfederal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: During our audit of the Coronavirus State and Local Fiscal Recovery Funds, we noted that internal controls related to compliance with federal requirements over procurement, and suspension and debarment could be enhanced. It was noted that there were no policies and procedures to ensure that an entity the Town entered into a transaction with is not suspended or debarred. Cause: The Town has not drafted policies and procedures to ensure vendors are not suspended or debarred. Effect: The Town is at a greater risk of using a vendor that is suspended or debarred which would put the Town at risk of noncompliance with program requirements. Recommendation: We recommend that the Town include in its policies and procedures additional procedures for the Town to verify vendors within the System for Award Management (SAM) Exclusions prior to engaging in a contract that is expected to equal or exceed $25,000. In addition, we recommend that the Town check the SAM Exclusions at least bi-annually for all vendors exceeding the threshold to ensure that no federal funds have been paid to excluded parties.
Finding 2023-002
Criteria: When a non-federal entity enters into a covered transaction with an entity at a lower tier, the nonfederal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: During our audit of the Coronavirus State and Local Fiscal Recovery Funds, we noted that internal controls related to compliance with federal requirements over procurement, and suspension and debarment could be enhanced. It was noted that there were no policies and procedures to ensure that an entity the Town entered into a transaction with is not suspended or debarred. Cause: The Town has not drafted policies and procedures to ensure vendors are not suspended or debarred. Effect: The Town is at a greater risk of using a vendor that is suspended or debarred which would put the Town at risk of noncompliance with program requirements. Recommendation: We recommend that the Town include in its policies and procedures additional procedures for the Town to verify vendors within the System for Award Management (SAM) Exclusions prior to engaging in a contract that is expected to equal or exceed $25,000. In addition, we recommend that the Town check the SAM Exclusions at least bi-annually for all vendors exceeding the threshold to ensure that no federal funds have been paid to excluded parties.