FAC Explorer

Finding 45646 (2022-002)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-09-14
Audit: 51314
Organization: Leino Park Water District (MA)
Auditor: Roselli Clark and Associates

AI Summary

  • Core Issue: The District lacks formal written policies for managing federal awards, which is a significant deficiency in internal controls.
  • Impacted Requirements: This situation violates the Uniform Guidance, which mandates documented policies on cash management, allowable costs, employee travel, procurement, and subrecipient monitoring.
  • Recommended Follow-Up: The District should create and implement the necessary procedures to document all required policies for federal awards compliance.

Finding Text

2022-002 U.S. Department of Agriculture Community Facilities Loans ? 10.766 Significant Deficiency in Internal Controls Over Compliance Criteria: The Uniform Guidance requires written policies regarding cash management, determination of allowable costs, employee travel, procurement and subrecipient monitoring. Condition: The District has not formalized written policies and procedures related to federal awards. Cause: The District has not formally documented internal controls over federal awards. Effect: The District is not in compliance with the Uniform Guidance requirements. Questioned Costs: None Repeat Finding from Prior Year: No Recommendation: The District should implement procedures to properly document all federal awards policies required by the Uniform Guidance. Views of Responsible Official: Management agrees with this finding.

Corrective Action Plan

Finding 2022-002 Significant Deficiency in Internal Controls Over Compliance Condition: The District has not formalized written policies and procedures related to federal awards. Corrective Action Planned: The District has historically not received federal grant funds and had no previous requirements to implement this compliance item. Additionally, at this time, the District does not anticipate receiving any federal grant funds in the foreseeable future. In the future, if the District were to pursue requesting more federal grant funds, it will look to establish formalized, written policies relative to grant management. Anticipated Completion Date: November 1, 2028 Contact: Derek Knerr, Treasurer, Leino Park Water District

Categories

Subrecipient Monitoring Procurement, Suspension & Debarment Allowable Costs / Cost Principles Cash Management Significant Deficiency

Other Findings in this Audit

  • 622088 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $1.08M