FAC Explorer

Audit 362656

FY End
2024-12-31
Total Expended
$3.54M
Findings
2
Programs
1
Organization: Russell Rural Water District No. 3 (KS)
Year: 2024 Accepted: 2025-07-21
Auditor: Adamsbrown LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
571701 2024-003 Significant Deficiency Yes I
1148143 2024-003 Significant Deficiency Yes I

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $3.54M 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 the de minimis 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, 2024.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 the de minimis cost rate. Russell Rural Water District No. 3’s was awarded a direct loan from the U.S. Department of Agriculture. Interim financing has been obtained to fund project costs until such time as the U.S. Department of Agriculture loan proceeds are disbursed to refund the interim financing. The balance of the interim financing outstanding at December 31, 2024 consists of: See the Notes to the SEFA for table.

Finding Details

Finding 2024-003
SIGNIFICANT DEFICIENCY 2024-003 – 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 in place to be followed. Context Informal policies and procedures are utilized for applicable procurements, but they have not implemented written policies. Cause The District has not received large amounts of federal funding in the past, and, as a result, it was not aware of the requirement. Effect The District may not effectively follow procurement standards. 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 2024-003
SIGNIFICANT DEFICIENCY 2024-003 – 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 in place to be followed. Context Informal policies and procedures are utilized for applicable procurements, but they have not implemented written policies. Cause The District has not received large amounts of federal funding in the past, and, as a result, it was not aware of the requirement. Effect The District may not effectively follow procurement standards. Recommendation We recommend that the District’s written policies be updated to properly reflect all requirements. Views of responsible officials See Corrective Action Plan.