Audit 47009

2022-001 Uniform Guidance Written Policies and Procedures ? Significant Deficiency Criteria: Uniform Guidance policies requires 2 CFR Part 180, which states written policies and procedures related to internal controls be written regarding SAMS.gov contractor verification of debarment and suspension. In addition, 200.326 Contract Provisions that pay over $2,000 in labor wages require to be in compliant with Davis Bacon Labor Laws. This requirement contains written acknowledge of certified wage rate payrolls weekly and contractual language of the wage rate certification of payroll in the contract between the contractor and the District. Condition: We found that Powder River Conservation District does not have written updated policies implementing Uniform Guidance contractual and internal control procedures. Cause & Effect: The cause appears to be the result of a lack of experience, and the effect is non-compliance and the possibility of entering into transactions with debarred or suspended vendors, and not paying adequate Federal wages to labors. Questioned Costs: -0- Recommendation: We recommend that the District update and implement written internal control policies that coincide with Federal grant requirements and contain all Uniform Guidance regulations, relating to Sams.gov debarment and suspension, Davis-Bacon Wage Requirements and internal controls. Management Response: See the last page of this report for Management?s response as found on the District?s letterhead.

2022-002 Cost Sharing Requirements ? Material Weakness Criteria: The Emergency Watershed Protection Program has a cost sharing requirement of Federal and non-Federal participation. The non-Federal portion, of the participation of funds must not utilize other Federal dollars toward meeting the cost-share requirement of this award. Cost sharing must come from non-Federal sources. Cause: Powder River Conservation District used Federal Fish & Game funds to match the non-Federal portion of the Emergency Watershed Protection Program. Condition: Federal funds to match other Federal funds are not allowed according to the cost sharing participation agreement Effect: The District must use matching funds in-accordance to the Federal grant cost sharing requirements. Questioned Costs: $75,000 Recommendation: We recommend that the District follow the agreements of the grant requirements and receive updated training for personnel on OMB requirements of Federal grants. Management Response: See the last page of this report for Management?s response as found on the District?s letterhead.

2022-001 Uniform Guidance Written Policies and Procedures ? Significant Deficiency Criteria: Uniform Guidance policies requires 2 CFR Part 180, which states written policies and procedures related to internal controls be written regarding SAMS.gov contractor verification of debarment and suspension. In addition, 200.326 Contract Provisions that pay over $2,000 in labor wages require to be in compliant with Davis Bacon Labor Laws. This requirement contains written acknowledge of certified wage rate payrolls weekly and contractual language of the wage rate certification of payroll in the contract between the contractor and the District. Condition: We found that Powder River Conservation District does not have written updated policies implementing Uniform Guidance contractual and internal control procedures. Cause & Effect: The cause appears to be the result of a lack of experience, and the effect is non-compliance and the possibility of entering into transactions with debarred or suspended vendors, and not paying adequate Federal wages to labors. Questioned Costs: -0- Recommendation: We recommend that the District update and implement written internal control policies that coincide with Federal grant requirements and contain all Uniform Guidance regulations, relating to Sams.gov debarment and suspension, Davis-Bacon Wage Requirements and internal controls. Management Response: See the last page of this report for Management?s response as found on the District?s letterhead.

2022-002 Cost Sharing Requirements ? Material Weakness Criteria: The Emergency Watershed Protection Program has a cost sharing requirement of Federal and non-Federal participation. The non-Federal portion, of the participation of funds must not utilize other Federal dollars toward meeting the cost-share requirement of this award. Cost sharing must come from non-Federal sources. Cause: Powder River Conservation District used Federal Fish & Game funds to match the non-Federal portion of the Emergency Watershed Protection Program. Condition: Federal funds to match other Federal funds are not allowed according to the cost sharing participation agreement Effect: The District must use matching funds in-accordance to the Federal grant cost sharing requirements. Questioned Costs: $75,000 Recommendation: We recommend that the District follow the agreements of the grant requirements and receive updated training for personnel on OMB requirements of Federal grants. Management Response: See the last page of this report for Management?s response as found on the District?s letterhead.