Audit 363900

Federal Agency: U.S. Environmental Protection Agency Federal Program Name: Capitalization Grants for Clean Water State Revolving Funds Assistance Listing Number: 66.458 Federal Award Identification Number and Year: Unknown Pass-Through Agency: Wisconsin Department of Administration Pass-Through Number(s): 4021-10 Award Period: July 10, 2024 – September 30, 2026 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Section 320.318(i) requires the District to maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. CFR 200.320(c) states that noncompetitive procurement can only be awarded if one or more of the following circumstances apply: (1) The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold; (2) The item is available only from a single source; (3) The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation; (4) The Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non-Federal entity; or (5) After solicitation of a number of sources, competition is determined inadequate. Condition: The District did not maintain documentation of the justification for the noncompetitive procurement and that it was done in accordance with Uniform Guidance requirements. Questioned costs: None Context: The District entered into one noncompetitive proposal during the course of the grant and did not maintain documentation of the consideration of the procurement method. Cause: The District does not receive frequent federal awards and was unfamiliar with the documentation requirements surrounding procurement procedures. Effect: Procurement practices may not be in compliance with the Uniform Guidance. Repeat Finding: No Recommendation: District personnel should familiarize themselves with the documentation requirements required by the CFR related to procurement. In addition, District policies and procedures should be modified to ensure documentation is maintained on the justification for any noncompetitive procurement transactions that are entered into and that the justification is reviewed and approved by someone other than the one making that determination. The written policies should be expanded to clearly address all five procurement methods allowed under Uniform Guidance. The District should also make sure to update its conflict of interest policy to specifically address situations with federal awards and also create written policies and procedures related to suspension and debarment. Views of responsible officials: There is no disagreement with the audit finding. The Board of Commissioners will discuss at future regularly scheduled meetings. Clerk and Director will make sure any decisions made include documentation as to why they differ from the established policy.

Federal Agency: U.S. Environmental Protection Agency Federal Program Name: Capitalization Grants for Clean Water State Revolving Funds Assistance Listing Number: 66.458 Federal Award Identification Number and Year: Unknown Pass-Through Agency: Wisconsin Department of Administration Pass-Through Number(s): 4021-10 Award Period: July 10, 2024 – September 30, 2026 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Section 320.318(i) requires the District to maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: Rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. CFR 200.320(c) states that noncompetitive procurement can only be awarded if one or more of the following circumstances apply: (1) The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold; (2) The item is available only from a single source; (3) The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation; (4) The Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non-Federal entity; or (5) After solicitation of a number of sources, competition is determined inadequate. Condition: The District did not maintain documentation of the justification for the noncompetitive procurement and that it was done in accordance with Uniform Guidance requirements. Questioned costs: None Context: The District entered into one noncompetitive proposal during the course of the grant and did not maintain documentation of the consideration of the procurement method. Cause: The District does not receive frequent federal awards and was unfamiliar with the documentation requirements surrounding procurement procedures. Effect: Procurement practices may not be in compliance with the Uniform Guidance. Repeat Finding: No Recommendation: District personnel should familiarize themselves with the documentation requirements required by the CFR related to procurement. In addition, District policies and procedures should be modified to ensure documentation is maintained on the justification for any noncompetitive procurement transactions that are entered into and that the justification is reviewed and approved by someone other than the one making that determination. The written policies should be expanded to clearly address all five procurement methods allowed under Uniform Guidance. The District should also make sure to update its conflict of interest policy to specifically address situations with federal awards and also create written policies and procedures related to suspension and debarment. Views of responsible officials: There is no disagreement with the audit finding. The Board of Commissioners will discuss at future regularly scheduled meetings. Clerk and Director will make sure any decisions made include documentation as to why they differ from the established policy.