Finding 1093897 (2023-004)

Finding No. 2023-004: Uniform Guidance Requirements Federal Program Affected: Capitalization Grants for Clean Water State Revolving Funds (ALN 66.458) Compliance Requirement: Allowable Costs/Cost Principles, Cash Management, Procurement, Reporting Questioned Costs: None Condition and Cause: The District does not have written policies for allowable costs/cost principles. The District did not submit the data collection form within nine months of year-end. Criteria and Effect: Uniform Guidance specifically requires entities to maintain written policies for allowable costs/cost principles. Not properly maintaining such policies leads to noncompliance and potential unallowable costs. The District properly planned to complete the data collection form timely but accounting activity unrelated to the compliance audit prevented timely filing. Repeat Finding from Prior Year: No. Recommendation: The District should create written policies for allowable costs/cost principles. No expected future concerns with filing date collection form timely. Response/Corrective Action Plan: See District’s Corrective Action Plan.