Finding 1227059 (2024-001)

Federal Program: Direct - USDA Rural Utilities Service award; ALN 10.760, 'Water and Waste Disposal Systems for Rural Communities' (Single Audit / Uniform Guidance) Condition: The Great Northwest Wholesale Water Commission did not complete and submit its reporting package, including the SEFA and the single audit report, to the Federal Audit Clearinghouse within nine months of the fiscal year end. Questioned Costs: None. Criteria: Under 2 CFR §200.512, the audit must be completed, and the data collection form and reporting package must be submitted within 30 calendar days after receipt of the auditor's report, or nine months after the fiscal year end, whichever is earlier. Context / Cause: The Commission was not aware that its federal award expenditures exceeded the $750,000 single audit threshold under 2 CFR §200.501 and did not engage auditors until November 2025. As a result, the single audits for the years ended December 31, 2022, 2023, and 2024 are being performed concurrently and will be submitted to the Federal Audit Clearinghouse upon completion. Effect: Non-compliance with federal filing deadlines, which can place the entity on a federal risk-status list or jeopardize future grant funding eligibility. Recommendation: Management should implement a strict year-end financial closing schedule and engage external auditors early to ensure the SEFA is compiled, reconciled, and audited on time. Views of Responsible Officials: Management agrees with the finding and has established a timeline to complete future filings prior to the statutory deadline.