North Alamo Water Supply CorporationNon-Profit

Criteria and Condition: In accordance with 2 CFR 200.502 and under the terms and conditions of federal grant and loans awarded to the Corporation by the United States Department of Agriculture (USDA), funds expended under interim construction financing advances relating to CFDA 10.706 are considered federal expenditures. It was noted that prior to 2021, the Corporation had not considered the expenditures from such interim financing on its SEFA. Cause and Effect: The Corporation's processes and procedures are not designated to ensure all federal program expenditures are considered on the entity's SEFA. Should these federal programs and related expenditures have been considered, the Corporation may have met the dollar threshold which would have triggered the need for a Single Audit. Repeat Finding from Prior Year(s ): N/A Recommendation: We recommend the Corporation enhance its processes and procedures surrounding the identification of applicable federal awards and related expenditures that should be presented on the entity's SEFA. Views of Responsible Officials: See management's corrective action plan.

Criteria and Condition: As per 2 CFR Section 200.313(d)(l), property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal awards under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. The Corporation maintains and regularly updates a comprehensive fixed asset schedule; however, it was noted that not all of the elements required under 2 CFR 200.313(d)(l) are documented. Cause and Effect: The Corporation's processes and procedures surrounding the documentation of property and equipment do not consider all of the elements required under 2 CFR 200.313(d)(l). Failure to appropriately identify property and equipment purchased in part or in whole with federal funds could result in erroneous reporting or the disallowed disposition of assets subject to federal interest. Repeat Finding from Prior Year(s): N/A Recommendation: We recommend the Corporation modify its existing fixed asset schedule to encompass all required elements to satisfy 2 CFR Section 200.313(d)(l) requirements. Views of Responsible Officials: See management's corrective action plan.