Finding ref number: 2024-001 Finding captions: The district did not have adequate internal controls ensuring accurate reporting of its financial statements. Name, address, and telephone of District contact person: Erick Brittain, Fire Chief PO Box 1449, Soap Lake, WA 98851 (509) 246-0321 Corrective ...
Finding ref number: 2024-001 Finding captions: The district did not have adequate internal controls ensuring accurate reporting of its financial statements. Name, address, and telephone of District contact person: Erick Brittain, Fire Chief PO Box 1449, Soap Lake, WA 98851 (509) 246-0321 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). 1. Develop and implement Written Policies and Procedures- The District will immediately develop formal, written internal control policies and procedures specific to financial reporting. This will include a robust internal review process to ensure all financial statements are accurate, properly supported and classified correctly prior to submission. Assigned to: Fire Chief and Administrative Assistant 2. Mandatory Financial Reporting Training: The Administrative Assistant and Fire Chief will attend ongoing training on Budgeting, Accounting and Reporting System (BARS) to gain a comprehensive understanding of proper financial reporting requirements and principals Assigned to: Fire Chief and Administrative Assistant 3. Cross Training and Segregation of Duties: The District will establish clear segregation of duties to ensure no single employee has control over all steps of a financial transaction or reporting process. The Administrative Assistant and Fire Chief will be cross trained to provide independent secondary review of the financial statements as well as obtaining Board of Commissioner Approval. Assigned to: Fire Chief and Administrative Assistant. 4. Contract with a third-party scheduling platform: The District will contract with a third-party vendor to accurately track employee time off in accordance with Grant County Fire District #7 paid time off policy. Assigned to: Fire Chief. Anticipated date to complete the corrective action: Ongoing/ December 31st 2025 Finding ref number: 2024-002 Finding captions: The district did not have adequate controls and did not comply with federal suspension, debarment and procurement requirements Name, address, and telephone of District contact person: Erick Brittain, Fire Chief PO Box 1449, Soap Lake, WA 98851 (509) 246-0321 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). 1. Develop and Implement Comprehensive Procurement and Public Works Policies: The District will immediately develop and adopt robust written procurement and public works policies and procedures. These policies will ensure compliance with both federal regulations and Washington state law (RCW). The policies will include detailed procedures for: ○ Vendor and Subcontractor Vetting: Incorporating explicit steps for checking potential vendors against the federal System for Award Management (SAM) database to ensure they are not suspended or debarred. This process will apply to all federally funded procurements, as well as any other procurements exceeding the federal threshold of $25,000 paid with federal funds. ○ Competitive Bidding: Establishing clear thresholds for purchases and public works projects requiring minimal, informal, or formal competitive bidding, in line with state guidelines. ○ Public Works Requirements: Mandating compliance with prevailing wage requirements and incorporating bonding and retainage rules for all public works projects. ○ Documentation: Requiring detailed record-keeping for all procurement activities, including bids, vendor evaluations, and justification for contract awards. ○ Contract Clauses: Including a standard contract clause affirming vendor understanding and compliance with federal debarment and suspension requirements. ○ Policy Approval: Submitting the draft policies for review and adoption by the district’s governing body. ○ Assigned to: Fire Chief and Administrative Assistant. 2. Conduct Staff Training: All relevant staff, particularly the Fire Chief and Administrative Assistant, will undergo mandatory training on the new policies and procedures. Training will cover the correct application of procurement rules, the importance of federal suspension and debarment checks, and proper documentation procedures. ○ Assigned to: Fire Chief. 3. Implement Management Review and Oversight: The Fire Chief will conduct and document a review of all procurement and public works transactions to ensure compliance with the newly adopted policies before any contract is finalized, or a purchase order is issued. ○ Assigned to: Fire Chief. 4. Establish Periodic Compliance Self-Assessment: The District will perform annual self-assessments of its procurement process to identify and correct any control weaknesses and ensure ongoing compliance with federal and state regulations. ○ Assigned to: Fire Chief Anticipated date to complete the corrective action: Ongoing/ December 31st, 2025.