Audit 414470

Program: Air Pollution Control Program Support and National Clean Diesel Funding Assistance Program Assistance Listing No.: 66.001 and 66.039 Federal Grantor: U.S. Environmental Protection Agency Passed-through: Direct Award Award No.: A00905921 and DE-98T08201 Award Year: 2024 and 2023 Compliance Requirements: Cash Management Type of Finding: Material Weakness in Internal Control Over Compliance Criteria: 2 CFR Section 200.303(a), Internal Controls, states that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: For ALN 66.001, three (3) out of three (3) payment drawdowns, the District did not retain evidence to document the individual who reviewed and approved the drawdowns prior to submission. For ALN 66.039, one (1) out of one (1) payment drawdown, the District did not retain evidence to document the individual who reviewed and approved the drawdown prior to submission. Cause: The District’s procedures did not include documenting the review and approval of the payment drawdowns prior to submission. Effect: Ineffective controls over this area of compliance could result in payment drawdowns that are inaccurate being submitted to the granting agency. Questioned Costs: No questioned costs were identified as a result of our audit procedures. Context/Sampling: For ALN 66.001, a non-statistical sample of three (3) out of three (3) payment drawdowns were selected for testing. We tested the entire population of three (3) drawdowns during the year. For ALN 66.039, a non-statistical sample of one (1) out of one (1) payment drawdown was selected for testing. We tested the entire population of one (1) drawdown during the year. Repeat Finding from Prior Years: No. Recommendation: We recommend the District revise its procedures to include evidence to document the individual who reviewed and approved payment drawdowns prior to submission. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.