Carson Water Subconservancy DistrictLocal Government

2020-002: U.S. Department of Homeland Security Cooperating Technical Partners, CFDA 97.045 Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Criteria: The OMB Compliance Supplement requires that non-federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Accurate reconciliation of expenditures is a key component of effective internal controls. Condition: Carson Water Subconservancy District charged a lower rate than actual on one employee. Cause: Carson Water Subconservancy District did not have adequate internal controls to review the rates utilized. Effect: Carson Water Subconservancy District did not draw the full amount of funds that it was entitled to draw for the transaction noted as an exception. Questioned Costs: None. Context/Sampling: We sampled four grant draws out of a population of 12 grant draws where payroll was drawn. Repeat Finding from Prior Year: No. Recommendation: We recommend Carson Water Subconservancy District enhance internal controls for review and approval of draw requests which include the underlying support and calculations utilized. Views of Responsible Officials: Carson Water Subconservancy District agrees with this finding.

2020-003: U.S. Department of Homeland Security Cooperating Technical Partners, CFDA 97.045 Procurement, Suspension, and Debarment Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the following: ? All contracts contain the applicable provisions described in Appendix II to Part 200 for contracts under federal awards. ? Procurement processes as described in Appendix II to Part 200 take place prior to entering into any covered contract transaction. ? A procurement policy is required that addresses the items described within 2 CFR 200.318. Condition: Certain applicable provisions described in Appendix II to Part 200 were not included in contracts as required. Procurement procedures were not always performed prior to entering into any covered contract transaction. Additionally, Carson Water Subconservancy District?s procurement policy does not address various items required by 2 CFR 200.318. Cause: Carson Water Subconservancy District did not have adequate internal controls to ensure contracts under federal awards contained all of the applicable provisions, to ensure procurement procedures were always performed prior to entering into all covered transactions, and to ensure its procurement policy addressed all items required by Uniform Guidance. Effect: Contractors may not be aware of required terms and conditions involved with Federally funded projects, the entity is not analyzing all Federally-required procurement factors prior to entering into contracts, and the entity?s procurement policy is missing certain items required by Uniform Guidance that may cause incomplete procurement procedures to take place. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 20 procurement transactions out of approximately 119 was selected for testing. All of the contracts were missing certain applicable provisions and procurement procedures described in Uniform Guidance were not performed for any of the individual contracts. Repeat Finding from Prior Year: No. Recommendation: We recommend Carson Water Subconservancy District enhance internal controls to ensure all contracts under federal awards contain the applicable provisions, ensure all applicable procurement procedures are performed prior to entering into all covered transactions, and ensure its procurement policy addresses all items required by Uniform Guidance. Views of Responsible Officials: Carson Water Subconservancy District agrees with this finding.