Finding Text
Reference No. 2022-001 Condition The District received $989,082 in Coronavirus State and Local Fiscal Recovery Funds (?CSLFRF?) for the year ended June 30, 2022 passed through the State Water Resource Control Board as part of the California Water and Wastewater Arrearage Payment Program. A Single Audit, or the Alternative Compliance Examination Engagement (?ACEE?) is required for all nonfederal entities which expend more than $750,000 and is due nine months after an entity?s fiscal year end. The District completed its ACEE on April 26, 2023 which is 26 days past the due date for completion of the ACEE. Criteria Title 2, Subtitle A, Chapter II, Part 200, Subpart F, Section 200.512 of the Code of Federal Regulations requires that ?the audit must be completed and the data collection form?and reporting package?must be submitted [to the Federal Audit Clearinghouse] within the earlier of 30 calendar days after receipt of the auditor?s report(s), or nine months after the end of the audit period.? For the District, the due date would have been March 31, 2023. Cause of Condition During the grant acceptance process, the District did not properly identify the CSLFRF program as a federal award program, as it was passed-through the State Water Resources Control Board of the State of California and was believed to be a nonfederal state program. Effect or Potential Effect of Condition The District submitted its ACEE report to the Federal Audit Clearinghouse late. Recommendation We recommend that the District implement procedures to ensure proper identification of federal awards during the grant application or acceptance process to ensure that Federal Single Audit requirements are complied with for the District?s major programs. Other Information Although the ACEE was submitted to the Federal Audit Clearinghouse past the deadline, there were no exceptions or instances of noncompliance identified with respect to the compliance requirements ?activities allowed or unallowed? and ?allowable costs/cost principles.? Evaluation of Finding Material weakness