Maricopa Stanfield Irrigation and Drainage District respectfully submits the following corrective action plan for the year ended December 31, 2022. Baker Tilly, US, LLP 1115 E. Cottonwood Lane, Suite 100 Casa Grande, AZ 85122 Audit period: December 31, 2022 The findings from the December 31, 2022 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS RELATED TO FINANCIAL STATEMENTS REPORTED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SIGNIFICANT DEFICIENCY FINDING 2022-001 LEASE CONTRACT DOCUMENTATION RECOMMENDATION: We recommend the District maintain all contracts that are currently in force by both parties and properly track/maintain these contracts. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Management concurs with the finding. Management will put in place a formal policy and procedure to track and maintain contracts in force. FINDINGS AND QUESTIONED COSTS RELATED TO FEDERAL AWARDS SIGNIFICANT DEFICIENCY FINDING 2022-002 PROCUREMENT PROCESSES AND PROCEDURES RECOMMENDATION: We recommend that management formally adopt amendments to their existing procurement policies to conform with U.S. Code of Federal Regulations Title 2, Part 200, Uniform Administrative Guidance CFR Section 318 (a). Additionally, we recommend management perform competitive procurement on all purchases made with federal funds and pay all vendors awarded directly from the District and not through a third-party conduit grant manager. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Management concurs with the finding. The District?s policies will be updated and approved to conform to federal guidance. Additionally, management will begin paying all vendors awarded through competitive procurement, on projects paid with federal funds, directly from the District?s bank accounts and not through a third part grant administrator. Lastly, Management of MSIDD has since obtained express authorization from the pass-through entity to use ED3 as a sole source vendor. If there are questions regarding this plan, please call Brian Yerges, General Manager or Kenneth Bodle, Director of Financial Services at 520-424-9311.