Finding 1102962 (2024-003)

2024 – 003 Significant Deficiency; Lack of Written Policies Relative to Federal Awards United States Environmental Protection Agency Capitalization Grants for Drinking Water State Revolving Funds ALN# 66.468 Condition: During my single audit of the current year, I noted that the District did not have written policies for compliance with the requirements of 2 CFR 200, Subpart D—Post Federal Award Requirements, and Subpart E—Cost Principles, as applicable. Criteria: The District must have written policies for compliance with the requirements of 2 CFR 200, Subpart D—Post Federal Award Requirements, and Subpart E—Cost Principles, as applicable. Cause: The District has not written these policies but continue to rely on the policies of the contracted District engineer, the Indian Health Service, to adhere to the compliance requirements applicable to the federal award. Effect: This is a significant deficiency in the internal control over compliance to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. There are no questioned costs related to this finding. Context: This is the first year of a Single Audit for this District and the first year for this finding. Recommendation: I recommend that the District ensure that policies relative to federal awards be developed and written to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Views of Responsible Officials: The District agrees with the finding.