Finding 1218916 (2025-003)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-06-25
Audit: 404949
Auditor: ADAMS BROWN LLC

AI Summary

  • Core Issue: The District lacks required written policies for procurement, violating 2 CFR 200 standards.
  • Impacted Requirements: Absence of formal procedures may lead to non-compliance with federal procurement standards.
  • Recommended Follow-Up: Update and implement written policies to meet all procurement requirements.

Finding Text

SIGNIFICANT DEFICIENCY 2025-003 – Water and Waste Disposal Systems for Rural Communities – Procurement, Suspension, and Debarment Criteria or specific requirement Entities are required to have written policies, procedures, and standards of conduct per 2 CFR 200, Subparts D and E. Condition During inquiry of District management, it was determined that the District did not have the required written policies in place to be followed. Context Informal policies and procedures are utilized for applicable procurements, but they have not implemented written policies. Cause The District has not received large amounts of federal funding in the past, and, as a result, it was not aware of the requirement. Effect The District may not effectively follow procurement standards. Recommendation We recommend that the District’s written policies be updated to properly reflect all requirements. Views of responsible officials See Corrective Action Plan.

Corrective Action Plan

SIGNIFICANT DEFICIENCY 2025-003 Water and Waste Disposal Systems for Rural Communities – Procurement, Suspension and Debarment Condition During inquiry of District management, it was determined that the District did not have the required written policies in place to be followed. Recommendation We recommend that the District’s written policies be updated to properly reflect all requirements. Comments on the Finding Management is aware of the oversight and has begun the process of creating a written policy.

Categories

Procurement, Suspension & Debarment

Programs in Audit

ALN Program Name Expenditures
10.760 WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES $2.39M