Finding 1227259 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-08-18

AI Summary

  • Core Issue: The Association failed to retain necessary documentation for the five Wastewater Community Assessment Reports and the implementation of recommendations.
  • Impacted Requirements: Compliance with USDA Decentralized Wastewater Program Performance Procedures was not demonstrated, including the Utility Management Certification (UMC) for the Water Quality Action Specialist (WQAS).
  • Recommended Follow-Up: The Association should maintain a centralized file for all relevant documentation and ensure ongoing coordination with NRWA to secure copies of required reports and certifications.

Finding Text

Special Tests and Provisions ALN 10:761: USDA Decentralized Wastewater Technical Assistance & Training Program Criteria: In the USDA Decentralized Wastewater Training and Technical Assistance Program Performance Procedures, it discusses the requirements of this program. The Water Quality Action Specialist (WQAS) is to work with communities and local decision makers and key stakeholders to complete five Wastewater Community Assessment Reports and is to implement a minimum of one recommendation from each Wastewater Community Assessment Report. The WQAS must possess a Utility Management Certification (UMC) or attain this UMC within 180 days of placement in the program. The program period is July 1, 2024 through June 30, 2025. Condition: The Association did not have what was provided to Nationals on the five Wastewater Community Assessment Reports and did not have information on if, or how many, recommendations from those reports were implemented. They also did not have information on whether the WQAS had the required UMC. Context: The Association submitted this information to Nationals. Effect: The Association did not retain support on what was submitted to Nationals for the required assessments and could not provide information that the Program Performance Procedures were followed. Questioned Costs: None. Cause: The WQAS employed by the Association submitted information directly to Nationals and no copy or information was retained by the Association. Nationals administers the UMC certification. Auditor Recommendation: We recommend the Association retain supporting documentation to demonstrate compliance with the Program Performance Procedures. Association Response: The Executive Director and Executive Assistant will coordinate with the appropriate NRWA program manager on an ongoing basis to ensure that Montana Rural Water Systems retains copies of all Wastewater Community Assessment Reports, documentation showing implementation of recommendations, focus stories, certification records, and other supporting program documentation. Program staff will be required to provide the MRWS office with a copy of each required submission at the time it is submitted to NRWA. These records will be maintained in a centralized program file and retained for future audits and program reviews. MRWS will also contact NRWA to request copies of, or written confirmation regarding, the five Wastewater Community Assessment Reports, documentation showing implementation of recommendations, certification records, and other supporting program documentation from the audit period. Any documentation received will be placed in the Association's program files.

Corrective Action Plan

The Executive Director and Executive Assistant will coordinate with the appropriate NRWA program manager on an ongoing basis to ensure that Montana Rural Water Systems retains copies of all Wastewater Community Assessment Reports, documentation showing implementation of recommendations, focus stories, certification records, and other supporting program documentation. Program staff will be required to provide the MRWS office with a copy of each required submission at the time it is submitted to NRWA. These records will be maintained in a centralized program file and retained for future audits and program reviews. MRWS will also contact NRWA to request copies of, or written confirmation regarding, the five Wastewater Community Assessment Reports, documentation showing implementation of recommendations, certification records, and other supporting program documentation from the audit period. Any documentation received will be placed in the Association's program files. Completion Date: The documentation retention process and request to NRWA for prior records will be completed by August 31, 2026. Documentation retention and coordination with NRWA will continue an ongoing basis. Tanya and I will oversee this process, remain in communication with the appropriate NRWA program managers, and make sure the required documentation is retained by Montana Rural Water Systems going forward. We will also reach out to NRWA to obtain the reports and supporting documentation identified in the findings so that those records can be placed in the Association's files. Sincerely, Ben Rigby Executive Director Montana Rural Water Systems Association, Inc.

Categories

Special Tests & Provisions

Other Findings in this Audit

  • 1227258 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.761 WATER AND WASTE TECHNICAL ASSISTANCE AND TRAINING GRANTS $485,845
10.U01 CIRCUIT RIDER PROGRAM $392,499
10.U02 SOURCE WATER PROTECTION PROGRAM $273,107
66.203 ENVIRONMENTAL FINANCE CENTER GRANTS $124,311
66.424 SURVEYS, STUDIES, INVESTIGATIONS, DEMONSTRATIONS, AND TRAINING GRANTS - SECTION 1442 OF THE SAFE DRINKING WATER ACT $124,113
66.446 TECHNICAL ASSISTANCE FOR TREATMENT WORKS (CLEAN WATER ACT [CWA] SECTION 104(B)(8)) $17,572