Finding 517738 (2024-005)

Finding 2024-005 Written Policies and Procedures and Other Control Activities - Significant Deficiency Criteria: Uniform Guidance requries that the District has written policies to ensure consistency in how federal funds are handled, provide clear framework for staff and facilitate audit compliance. Furthermore, the District should have a clear and documented process that addresses approval of federal expenditures and to verify vendors are neither suspended nor debarred. Condition: During our audit we found that the District does not have written policies and procedures that address how to manage the procurement process, determine allowable costs, document authorization of expenditures and other applicable matters. Furthermore, we found that the District does not have a formal process to document the District manager's approval of federal expenditures nor is there a process in place to verify if a vendor is suspended or debarred. Cause: As the District has not spent over $750,000 in federal awards for many years, they were unaware of certain requirements as set forth by Uniform Guidance. Effect: Noncompliance with the requirements of Uniform Guidance. Recommendation: We recommend that the District implements written policies and procedures that adequately address all applicable compliance points including authorization and verification of suspension and debarment. Response: Please see the last page for managements response to this finding.