Finding 497930 (2023-002)

Program Name - Water and Waste Disposal Systems for Rural Communities Federal I.D. Number - 10.760 Federal Agency - U.S. Department of Agriculture Type of Finding - Noncompliance of the Provisions of the Uniform Guidance Condition: The Village does not have written policies and procedures to follow for procuring goods or services or written standards of conduct to follow when procuring those goods or services. Criteria: The Uniform Guidance requires all auditees to have written policies and procedures for procuring goods and services and written standards of conduct to follow when procuring those goods and services as stated in 2 CFR Part 200.318. Effect: Not having written policies and procedures to follow when procuring goods or services and not having standards of conduct to follow when procuring those goods or services could result in unallowed costs charged to a federal program. Cause: The Village has never been required to have a Single Audit and was not aware of the requirement to have written policies and procedures for procuring goods and services and written stanards of conduct to follow when procuring those goods or services. Auditor's Recommendation: This circumstance is not unusual in a small entity which has never been required to have a Single Audit. We recommend that the Village Board implement written policies and procedures for prouring goods and services and standards of conduct for employees to follow when procuring those goods and services. Management's Response: See management's corrective action plan on page 55.