FAC Explorer

Audit 304084

FY End
2023-12-31
Total Expended
$3.01M
Findings
2
Programs
1
Organization: Hardin County Water District No. 2 (KY)
Year: 2023 Accepted: 2024-04-22
Auditor: Rfh PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
393927 2023-001 Significant Deficiency - I
970369 2023-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $500,000 Yes 0

Contacts

Name Title Type
MA61M54AJM44 Mandy Isham Auditee
2707371056 Tyler Fallin Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Hardin County Water District No. 2, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in, or used in the preparation of the basic financial statements may differ from these numbers. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the 10 percent de minimis cost rate as allowed under Uniform Guidance The accompanying schedule of expenditures of federal awards includes the federal grant activity of Hardin County Water District No. 2, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in, or used in the preparation of the basic financial statements may differ from these numbers.
Title: Indirect Cost Rates Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Hardin County Water District No. 2, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in, or used in the preparation of the basic financial statements may differ from these numbers. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the 10 percent de minimis cost rate as allowed under Uniform Guidance The District did not elect to use the 10 percent de minimis cost rate as allowed under Uniform Guidance

Finding Details

Finding 2023-001
Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: During our audit we noted that the District did not have a process in place for ensuring that parties it contracts with have not been suspended or debarred. As part of the audit, we examined the debarment status of vendors with which the District contracted for approximately 91% of the federal award and noted that there were no active exclusions on these vendors. Cause: Internal controls over suspension and debarment are inadequate. Effect: The District could use federal funds to pay a party who has been suspended or debarred by the federal government. Recommendation: We recommend that the District establish a control process to review the debarment status of parties prior to contracting with the party under a federal award. RESPONSE: The District will include a suspension and debarment clause within its procurement contracts. The District will also review the SAM website for each contractor to determine whether the contractor has been suspended or debarred. This will be implemented no later than April 30, 2024.
Finding 2023-001
Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: During our audit we noted that the District did not have a process in place for ensuring that parties it contracts with have not been suspended or debarred. As part of the audit, we examined the debarment status of vendors with which the District contracted for approximately 91% of the federal award and noted that there were no active exclusions on these vendors. Cause: Internal controls over suspension and debarment are inadequate. Effect: The District could use federal funds to pay a party who has been suspended or debarred by the federal government. Recommendation: We recommend that the District establish a control process to review the debarment status of parties prior to contracting with the party under a federal award. RESPONSE: The District will include a suspension and debarment clause within its procurement contracts. The District will also review the SAM website for each contractor to determine whether the contractor has been suspended or debarred. This will be implemented no later than April 30, 2024.