Audit 402647

Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19: American Rescue Plan Act - Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: City of Pasco Pass-Through Number(s): N/A Award Period: July 26, 2024 – September 2, 2026 Type of Finding:  Significant Deficiency in Internal Control Over Compliance – Suspension & Debarment  Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards §200.214 requires non-Federal entities to ensure that contractors are not suspended or debarred prior to entering into covered procurement transactions and to maintain controls to verify compliance with suspension and debarment requirements. Condition: Verification was not formally documented. As such, we were unable to verify this was performed prior to engaging with the contractors. Questioned costs: None. Context: Suspension and debarment verification support from SAM.gov was not retained, and no documentation was available to evidence that verification procedures were performed prior to the Club engaging with the contractors. Cause: Management did not retain documentation evidencing the performance of suspension and debarment verification procedures. Effect: The Club did not have documented evidence to demonstrate compliance with suspension and debarment verification requirements. Repeat finding: Not a repeat finding. Recommendation: We recommend the Club establish and retain documentation to evidence that suspension and debarment verification procedures are performed prior to engaging with contractors. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19: American Rescue Plan Act - Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: City of Pasco Pass-Through Number(s): N/A Award Period: July 26, 2024 – September 2, 2026 Type of Finding:  Significant Deficiency in Internal Control Over Compliance – Reporting  Other Matters Criteria or specific requirement: Performance progress reports must be complete and include expenditure activity incurred during the reporting period. Condition: Quarterly performance progress report did not include all expenditure activity for the reporting period. Questioned costs: None. Context: One of the three quarterly performance progress reports selected for testing did not include all expenditures incurred during the reporting period. Expenditures were included on the subsequently filed quarterly performance progress report. Cause: Expenditures reported on the quarterly performance progress report were based on grant billings that occurred during the reporting period rather than actual expenditures incurred. Effect: The quarterly performance progress report under reported expenditures during the period in the amount of $256,352.42. Repeat finding: Not a repeat finding. Recommendation: We recommend the Club use expenditures reported in the accounting system when preparing progress reports in order to ensure all activity is properly captured. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19: American Rescue Plan Act - Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: City of Pasco Pass-Through Number(s): N/A Award Period: July 26, 2024 – September 2, 2026 Type of Finding:  Significant Deficiency in Internal Control Over Compliance – Procurement  Other Matters Criteria or specific requirement: Management is responsible for maintaining and using documented procedures for procurement transactions under Federal awards or subawards that are consistent with laws and regulations and the standards identified in §200.317 through §200.327. Condition: The Club's procurement policy in effect at the time of the procurement did not address all required standards of conduct, conflict-of-interest provisions, and mandatory federal contract clauses applicable to covered procurement transactions. Questioned costs: None. Context: Contracts were procured during the audit period based on a procurement policy that did not fully align with the requirements of the Uniform Guidance. Cause: The procurement policy did not include all of the required elements under the Uniform Guidance. Effect: The Club's procurement policy did not meet all of the requirements of the Uniform Guidance. Repeat finding: Not a repeat finding. Recommendation: We recommend the Club establish procedures to ensure internal policies remain up to date and are revised to incorporate changes from regulatory agencies as needed. Views of responsible officials: There is no disagreement with the audit finding.