Finding 1078876 (2022-008)

Department of the Treasury, Passed through North Dakota State Water Commission Federal Financial Assistance Listing 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Other Material Weakness in Internal Control Over Compliance Criteria - Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the District to prepare a Schedule of Expenditures of Federal Awards (Schedule) showing all federal expenditures for the year. Condition - The District does not have an internal control system designed to provide for a complete and accurate Schedule. The District did not include a federal program totaling expenditures of $1,094,581. Cause - The District did not have adequate internal controls to ensure all grants were identified that needed to be included on the Schedule. Effect - The District did not properly reflect all grants in its Schedule. Questioned Costs - None reported Context/Sampling - None Repeat Finding from Prior Year(s) - No Recommendation - We recommend the District revise its process for creating the Schedule to ensure all federal grants are included. Views of Responsible Officials - There is no disagreement with the audit finding.