Finding 394519 (2023-003)

SIGNIFICANT DEFICIENCY 2023-003 – 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. Context Although the District operates based on procedures and controls that were sufficient to prevent any known noncompliance, those procedures and controls should be turned into a formal policy. Cause The District has not received large amounts of federal funding in the past, and, as a result, they were not aware of the requirement. Effect The District’s informal procedures were not documented as a written policy. Recommendation We recommend that the District’s written policies be updated to properly reflect all requirements. Views of responsible officials See Corrective Action Plan.