FAC Explorer

Audit 304393

FY End
2023-12-31
Total Expended
$5.21M
Findings
2
Programs
1
Organization: Russell Rural Water District No. 3 (KS)
Year: 2023 Accepted: 2024-04-24
Auditor: Adamsbrown LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
394519 2023-003 Significant Deficiency - I
970961 2023-003 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $5.21M Yes 1

Contacts

Name Title Type
MKHFAJ5YQFK3 Jamie Tomlinson Auditee
6206532649 Danielle Hollingshead Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule are presented in accordance with generally accepted accounting principles. Such expenditures are recognized following the cost principles contained in the Uniform Guidance cost principles, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use a cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Russell Rural Water District No. 3 under programs of the federal government for the year ended December 31, 2023.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), Audits of States, Local Governments, and Non-Profit Organizations. Because the schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the net position, changes in net position, or cash flows of the District.
Title: Federal Loan Programs Accounting Policies: Expenditures reported on the schedule are presented in accordance with generally accepted accounting principles. Such expenditures are recognized following the cost principles contained in the Uniform Guidance cost principles, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use a cost rate. Russell Rural Water District No. 3’s has received a direct loan from the U.S. Department of Agriculture. The balance of the loan outstanding at December 31, 2023 consists of: See the Notes to the SEFA for chart/table.

Finding Details

Finding 2023-003
SIGNIFICANT DEFICIENCY 2023-003 – Water and Waste Disposal Systems for Rural Communities – Procurement, Suspension, and Debarment Criteria or specific requirement Entities are required to have written policies, procedures, and standards of conduct per 2 CFR 200, Subparts D and E. Condition During inquiry of District management, it was determined that the District did not have the required written policies. Context Although the District operates based on procedures and controls that were sufficient to prevent any known noncompliance, those procedures and controls should be turned into a formal policy. Cause The District has not received large amounts of federal funding in the past, and, as a result, they were not aware of the requirement. Effect The District’s informal procedures were not documented as a written policy. Recommendation We recommend that the District’s written policies be updated to properly reflect all requirements. Views of responsible officials See Corrective Action Plan.
Finding 2023-003
SIGNIFICANT DEFICIENCY 2023-003 – Water and Waste Disposal Systems for Rural Communities – Procurement, Suspension, and Debarment Criteria or specific requirement Entities are required to have written policies, procedures, and standards of conduct per 2 CFR 200, Subparts D and E. Condition During inquiry of District management, it was determined that the District did not have the required written policies. Context Although the District operates based on procedures and controls that were sufficient to prevent any known noncompliance, those procedures and controls should be turned into a formal policy. Cause The District has not received large amounts of federal funding in the past, and, as a result, they were not aware of the requirement. Effect The District’s informal procedures were not documented as a written policy. Recommendation We recommend that the District’s written policies be updated to properly reflect all requirements. Views of responsible officials See Corrective Action Plan.