Finding 1090292 (2024-003)

Criteria: The District should have control procedures in place to ensure that compliance requirements applicable to federal programs are met. This finding was reported in the previous year as number 2023- 004. Condition: The District has established internal controls over compliance for the major federal programs; however, these controls failed in regard to establishing documented procurement procedures in accordance with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327. Questioned Costs: There are no questioned costs associated with this finding. Context: During our examination of compliance with federal programs, we noted one instance of internal controls not preventing noncompliance with the requirements of the federal programs. Effect: The District did not comply with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327. Cause: The District did not establish documented procurement procedures for the acquisition of property or services consistent with State, local, and tribal laws and regulations and the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 until November 13, 2023. Recommendation: We recommend that the District establish appropriate controls to ensure compliance in regard to the compliance requirements of federal programs. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendations will be adopted.