SANITATION DISTRICT NO. 1 OF NORTHERN KENTUCKY

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.

Re: State Single Audit Corrective Action Plan for the Fiscal Year Ended June 30, 2023 AUDIT FINDINGS Finding Reference Number: 2023-01 Description of Finding: No Written Policies, Procedures, or Standards of Conduct Relative to Federal Awards. Statement of Concurrence or Nonconcurrence: Sanitation District No.1 agrees with the audit finding. Corrective Action: Sanitation District No.1 will prepare written procedures governing the expenditures of Federal Funds. Name of Contact Person:Debbie Vinson, Accounting Manager dvinsonsd1.orq (859) 578-7462 Projected Completion Date: On or before June 30, 2024