BUFFALO MOUNTAIN METROPOLITAN DISTRICTLocal Government

BUFFALO MOUNTAIN METROPOLITAN DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2019 Financial Reporting Findings: 2019-001 Procurement Policy Criteria: The District received and spent federal grant funds during the year ended December 31, 2019. Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) ? 200.318 requires the District to establish, in writing, procurement standards for use in the District procurement (purchases) over federal grant expenditures. Condition: The District does not have written procurement (purchasing) policies and procedures for use in procuring and spending federal grant expenditures. Context: During the performance of our audit procedures, we identified that the District doesn?t have the required procurement standards in writing. Effect: There is a risk that District?s procurement of federal grant expenditures are not in compliance with the federal grant program that is funding the water tank project. Cause: The District?s financial activities usually do not include expenditures which are funded by federal grants. The District?s new water tank construction project is being funded by federal grant funds through a loan from the Colorado Water Resources & Power Development Authority, which is also overseen by the Colorado Department of Public Health and Environment. During the planning stages of the project and loan approval, neither entity informed the District of these federal requirements. Therefore, District management was not aware of these requirements, in order to establish and approve procurement policies and procedures. Questioned Costs: None. Recommendation: We recommend that the District establish and approve procurement policies and procedures for all procurement activities of the District. View of Responsible Officials and Planned Corrective Actions See the accompanying Corrective Action Plan.