Finding Text
Federal program: Water and Waste Disposal Systems for Rural Communities
Assistance listing number: 10.760
Federal agency: U.S. Department of Agriculture
Pass-through entity: n/a – direct award
Pass-through entity identification number: n/a
Type of Finding: Significant deficiency in internal control over compliance.
Criteria: Per 2 CFR Section 200.214, non-federal entities are subject to the non-procurement and suspension regulations restricting awards, subawards, and contracts with certain parties that are debarred or suspended.
Condition: The Town does not have a formal procedure to determine that contractors are not debarred, suspended or otherwise excluded or ineligible for participation in Federal assistance programs or activities.
Cause: Town personnel were unaware of this requirement.
Effect: Transactions could occur that did not comply with federal regulations.
Questioned costs: None
Repeat finding: The Town of Bridgewater, Vermont was not required to have a Single Audit for its prior fiscal year. Accordingly, this is not a repeat finding.
Perspective information: The finding was based on requesting the Town’s policies and procedures related to federal compliance and therefore was not the result of a statistical sample.
Recommendation: The auditor recommends that the Town obtain an understanding of the required procedures in the Code of Federal Regulations as applicable to its federal programs, create and formally adopt those required procedures.