Audit 328432

2024-002 –Single Audit Performance (66.468 Environmental Protection Agency) Condition: A single audit was not performed for a major program for the fiscal year ended June 30, 2023. Criteria: A single audit in accordance with the requirements set forth in the Uniform Guidance is required if total federal expenditures exceed $750,000 in a fiscal year. Federal expenditures exceeded $750,000 and the major program was a high-risk Type A program for the year ended June 30, 2023. Cause: The program required revolving loan fund drawdowns, which did not occur within the fiscal year funds were expended. Effect: The identified Type A high risk program was not tested as major. Questioned Costs: N/A Recommendation: Ensure management considers federal award compliance requirement and ensures that such requirements are satisfied each year. Views of Responsible Officials: Management will monitor major programs and ensure that they are tested when necessary. The grant in question was tested during 2024.

2024-003: Controls Over Cutoff – COVID-19 Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) (Material Weakness Controls Over Compliance) Condition: During our review of CSLFRF expenditures, we noted approximately $2,577,622 of allowable costs that were recorded in the wrong period. Criteria: The expenditures must be reported in the proper period for accurate reporting on the Schedule of Expenditures of Federal Awards. Cause: Procedures in place to ensure all expenditures are recorded in the proper period were not followed. Effect: Approximately $2,577,622 of allowable costs were recorded in fiscal year 2025 instead of fiscal year 2024. Questioned Cost Amount: N/A – the expenditures in question are allowable costs that were reported in the wrong fiscal year. Perspective Information: Five invoices were recorded in the wrong fiscal year. Context: Grant management and District management did not communicate about June 30, 2024 cutoff procedures. Recommendation: We recommend continued communications with all individuals involved in the grant process to ensure activity is recorded in the proper reporting period. Views of Responsible Officials and Planned Corrective Action: The District uses an outside party to oversee grant management. District management will review work performed by outside parties to ensure completeness and accuracy.

2024-002 –Single Audit Performance (66.468 Environmental Protection Agency) Condition: A single audit was not performed for a major program for the fiscal year ended June 30, 2023. Criteria: A single audit in accordance with the requirements set forth in the Uniform Guidance is required if total federal expenditures exceed $750,000 in a fiscal year. Federal expenditures exceeded $750,000 and the major program was a high-risk Type A program for the year ended June 30, 2023. Cause: The program required revolving loan fund drawdowns, which did not occur within the fiscal year funds were expended. Effect: The identified Type A high risk program was not tested as major. Questioned Costs: N/A Recommendation: Ensure management considers federal award compliance requirement and ensures that such requirements are satisfied each year. Views of Responsible Officials: Management will monitor major programs and ensure that they are tested when necessary. The grant in question was tested during 2024.

2024-003: Controls Over Cutoff – COVID-19 Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) (Material Weakness Controls Over Compliance) Condition: During our review of CSLFRF expenditures, we noted approximately $2,577,622 of allowable costs that were recorded in the wrong period. Criteria: The expenditures must be reported in the proper period for accurate reporting on the Schedule of Expenditures of Federal Awards. Cause: Procedures in place to ensure all expenditures are recorded in the proper period were not followed. Effect: Approximately $2,577,622 of allowable costs were recorded in fiscal year 2025 instead of fiscal year 2024. Questioned Cost Amount: N/A – the expenditures in question are allowable costs that were reported in the wrong fiscal year. Perspective Information: Five invoices were recorded in the wrong fiscal year. Context: Grant management and District management did not communicate about June 30, 2024 cutoff procedures. Recommendation: We recommend continued communications with all individuals involved in the grant process to ensure activity is recorded in the proper reporting period. Views of Responsible Officials and Planned Corrective Action: The District uses an outside party to oversee grant management. District management will review work performed by outside parties to ensure completeness and accuracy.