Finding 5628 (2023-001)

Finding 2023-01 – No Written Policies or Procedures, or Standards of Conduct Relative to Federal Awards Criteria – Written policies, procedures, or standards of conduct relative to federal awards are required by 2 U.S. Code of Federal Regulations (CFR) Part 200: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subparts D and E (Sections 2 CFR 200.300 and 200.400, respectively.) Condition – Sanitation District No. 1 does not have formalized written policies, procedures, or standards of conduct relative to federal awards. Effect – Effective and consistent internal control over compliance relative to federal awards cannot be maintained and monitored without written policies, procedures or standards of conduct. Recommendation – Sanitation District No. 1 should prepare written policies, procedures, or standards of conduct that document internal controls necessary to ensure compliance over the expenditure of federal awards. Management’s Response – Management will prepare written policies to ensure internal control over compliance is documented.