Finding 380982 (2023-002)

Finding 2023-002: Written Policies - Internal Control Finding - Significant Deficiency Prior year Findings: None Department of Agency: Department of Environmental Quality Assisted Listing Number: 66.458 Capitalization Grants For Clean Water State Revolving Funds Criteria: Uniform Guidance policies require 2 CFR Part 180 states written policies and procedures related to internal controls be written regarding SAMS.gov contractor verification of debarment and suspension. Condition: North Sweetwater Water and Sewer District does not have updated written policies implementing Uniform Guidance contractual and internal control procedures. Cause and Effect; While detail testing, we found no unallowed costs or vendors who were debarred or suspended with SAMS.gov, without lack of written internal control policies the North Sweetwater Water and Sewer District could enter into transactions with debarred or suspended vendors. Repeat Finding: No Recommendation: We recommend that the North Sweetwater Water and Sewer District update and have written internal control policies to contain all Uniform Guidance regulations, relating to SAMS.gov debarment and suspension and other federal contractual requirements. It is recommended that these policies and internal controls be reviewed in alignment with the Federal Award contractual agreements on a regular basis. Response: Please see the last page of this report for the North Sweetwater Water and Sewer District's response to this finding.