Audit 405374

SIGNIFICANT DEFICIENCY 2025-001 - Procurement Federal Program Information: US Department of Agriculture – Rural Development ALN - 10.770 - Water and Waste Facility Loans and Grants to Alleviate Health Risks on Tribal Lands Criteria: The following CFR(s) apply to this finding: 2 CFR 200.200.318(a)(i) Condition: During audit procedures, it was identified that the Company did not have a Procurement Policy. Cause: The Company does not have the necessary internal controls over compliance. This is due to the lack of knowledge of federal procurement requirements. Effect: The Company did not have the necessary method of procurement documentation for the bid process and hiring of the engineer to oversee and manage the project. Identification of Questioned Costs: None identified. Context: No approved procurement policy which resulted in one of the two contracts not have the necessary method of procurement documentation. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the Company implement a Procurement Policy to ensure that internal control processes and procedures meet the federal procurement requirements. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan.