2016/06/22 Council Agenda Packet

6 control does not operate as designed or the person performing the control does not possess the necessary authority or competence to perform the control effectively. . . Material weakness in_internal control over compliance. A deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented, or detected and corrected, on a timely basis. In this section, a reasonable possibility exists when the likelihood of the event is either reasonably possible or probable as defined as follows: Reasonably possible. The chance of the future event or events occurring is more than remote but less than likely. Remote. The chance of the future event or events occurring is slight. Probable. The future.event or events are likely to occur. . . Significant deficiency in internal control over compliance. A deficiency, or a combination of deficiencies, in internal control over compliance that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Title 2, Code of Federal Regulations, APPENDIX A TO PART 170 — AWARD TERM,provides, in part: I.Reporting Subawards and Executive Compensation. a. Reporting offirst-tier subawards. 1. Applicability. Unless you are exempt as provided in paragraph d. of this award term, you must report each action that obligates $25,000 or more in Federal funds that does not include Recovery funds (as defined in section 1512(a)(2) of the American Recovery and Reinvestment Act of 2009, Pub. L. 111-5) for a subaward to an entity (see definitions in paragraph e. of this award term). Washington State Auditor's Once 9 2 Page 9