Finding Text
Controls over Compliance of Federal Programs
Criteria: The District should have control procedures in place to ensure that compliance requirements applicable to federal programs are met.
Condition: The District has established internal controls over compliance for the major federal programs; however, these controls failed in regard to establishing documented procurement procedures in accordance with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 and obtaining approval from the state agency prior to purchasing property and equipment as required by 2 Code of Federal Regulations Part 225 Appendix B, section 15. The District implemented the procurement policy controls on October 17, 2022. This finding was reported in the previous year as number 2022-007.
Questioned Costs: There are no questioned costs associated with this finding.
Context: During our examination of compliance with federal programs, we noted two instances of internal controls not preventing noncompliance with the requirements of the federal programs.
Effect: The District did not comply with the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 and Title 2 Code of Federal Regulations Part 225 Appendix B, section 15 for the entirety of the year ended June 30, 2023.
Cause: The District did not establish documented procurement procedures for the acquisition of property or services consistent with State, local, and tribal laws and regulations and the standards of Title 2 U.S. Code of Federal Regulations §200.317 through §200.327 until October 17, 2022. The District did not obtain approval from the state agency prior to purchasing property and equipment as required by Title 2 Code of Federal Regulations Part 225 Appendix B, section 15.
Recommendation: We recommend that the District continue to follow the appropriate controls to ensure compliance in regard to the compliance requirements of federal programs.
Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and the auditor’s recommendations will be adopted.