Finding Text
U.S. Department of the Interior Reclamation States Emergency Drought Relief, Federal Financial Assistance Listing 15.514 Procurement, Suspension, and Debarment Significant Deficiency in Internal Control over Compliance and Non-Compliance Criteria: Draper Irrigation Company and Subsidiary should have written policies regarding procurement and conflict-of-interest with Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.318.. Condition: In connection with the audit procedures performed, it was noted that Draper Irrigation Company and Subsidiary did not have formal written policies regarding their procurement policies and conflict-of-interest policies in regards to program expenditures. However, procurement compliance was adhered to during the year. Cause: Draper Irrigation Company and Subsidiary did not prepare any formal written policies regarding their procurement policies and conflict-of-interest policies in regards to program expenditures and did not have an internal control process to review and verify all required policies were documented. Effect: Draper Irrigation Company and Subsidiary is not in compliance in accordance with Title 2, Code of Federal Regulations, Part 200, Subpart D, Section 200.318. Questioned Costs: None reported Context: In connection with the audit procedures performed, it was noted that Draper Irrigation Company and Subsidiary did not prepare formal written policies regarding their procurement policies and conflict-of-interest policies in regards to program expenditures. Repeat Finding from Prior Year: No Recommendation: We recommend Draper Irrigation Company and Subsidiary formally document in writing their procurement policies and conflict-of-interest policies. Views of Responsible Officials: Management agrees with this finding and is in the process of approving drafted written procurement policies.