Finding 1174654 (2025-002)

Finding 2025-002: Approval of Expenditures– Internal Control Finding – Significant Deficiency Assisted Listing Number: 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: Uniform Guidance policies require entities to establish and maintain effective internal control over federal awards that provides reasonable assurance that the entity is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Effective internal controls include documented approval processes for expenditures to ensure allowability, accuracy, and proper authorization. Condition: North Sweetwater Water and Sewer District did not consistently document evidence of supervisory review and approval for federal expenditures charged to the program. During testing, expenditures were processed and paid without documented approval by an authorized individual prior to disbursement. Cause: Unknown. Effect: Without a documented approval process, there is an increased risk that unallowable, inaccurate, or unauthorized expenditures could be charged to the federal program. Repeat Finding: N/A Recommendation: We recommend that management establish and enforce formal policies and procedures requiring documented supervisory approval of all federal expenditures prior to payment. Response: Please see the last page of this report for the North Sweetwater Water and Sewer District’s response to this finding.