Audit 11091

FY End
2022-06-30
Total Expended
$993,341
Findings
4
Programs
4
Year: 2022 Accepted: 2024-01-11

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
8293 2022-005 Significant Deficiency Yes L
8294 2022-005 Significant Deficiency Yes L
584735 2022-005 Significant Deficiency Yes L
584736 2022-005 Significant Deficiency Yes L

Contacts

Name Title Type
YMXKYNGCWM15 Robert Voss Auditee
3206794065 Douglas P. Host Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 REPORTING ENTITY Accounting Policies: REPORTING ENTITY The Schedule of Expenditures of Federal Awards presents the activities of federal award programs expended by East Central Regional Development Commission (the Commission). The Commission’s reporting entity is defined in Note 1 to the financial statements. BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Commission under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) from the Office of Management and Budget (OMB). Because the schedule presents only a selected portion of the operations of the Commission, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Commission. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. The Commission has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Commission has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Schedule of Expenditures of Federal Awards presents the activities of federal award programs expended by East Central Regional Development Commission (the Commission). The Commission’s reporting entity is defined in Note 1 to the financial statements.
Title: NOTE 2 BASIS OF PRESENTATION Accounting Policies: REPORTING ENTITY The Schedule of Expenditures of Federal Awards presents the activities of federal award programs expended by East Central Regional Development Commission (the Commission). The Commission’s reporting entity is defined in Note 1 to the financial statements. BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Commission under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) from the Office of Management and Budget (OMB). Because the schedule presents only a selected portion of the operations of the Commission, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Commission. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. The Commission has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Commission has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Commission under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) from the Office of Management and Budget (OMB). Because the schedule presents only a selected portion of the operations of the Commission, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Commission.
Title: NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: REPORTING ENTITY The Schedule of Expenditures of Federal Awards presents the activities of federal award programs expended by East Central Regional Development Commission (the Commission). The Commission’s reporting entity is defined in Note 1 to the financial statements. BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Commission under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) from the Office of Management and Budget (OMB). Because the schedule presents only a selected portion of the operations of the Commission, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Commission. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. The Commission has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Commission has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. The Commission has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE 4 RECONCILIATION OF REVOLVING LOAN FUNDS REPORTED Accounting Policies: REPORTING ENTITY The Schedule of Expenditures of Federal Awards presents the activities of federal award programs expended by East Central Regional Development Commission (the Commission). The Commission’s reporting entity is defined in Note 1 to the financial statements. BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Commission under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) from the Office of Management and Budget (OMB). Because the schedule presents only a selected portion of the operations of the Commission, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Commission. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. The Commission has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Commission has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. For purposes of completing the Schedule of Expenditures of Federal Awards (SEFA), each EDA RLF grant (CFDA 11.307) must be shown as a separate line item calculated as follows: 1. Balance of RLF principal outstanding on loans at the end of the recipient's fiscal year, plus $481,111 2. Cash and investment balance in the RLF at the end of the recipient's fiscal year, plus $19,172 3. Administrative expenses paid out of RLF income during the recipient's fiscal year, plus $33,350 4. The unpaid principal of all loans written off during the recipient's fiscal year. $0 5. Multiply this sum (1+2+3+4) by the federal share of the RLF. The federal share is defined as the federal participation rate (or the federal grant rate) as specified in the grant award. 100% Total Expenditures of 11.307 COVID-19 Economic Adjustment Assistance $533,633

Finding Details

CASEFILE REVIEW Federal Agency: U.S Department of Commerce Federal Program Name: Covid-19 Economic Adjustment Assistance (Economic Development Cluster) Assistance Listing Number: 11.307 Pass-Through Agency: N/A – Direct Pass-Through Numbers: N/A – Direct Federal Award Identification Number and Year: ED20CHI3070088/06-79-06222/06-79-06392; 2022 Compliance Requirement Affected: Reporting Award Period: Year Ended June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: Standard internal control procedures recommend that all reports should have supporting documentation, documentation of review, and documentation of the date of submission. Condition: There was no formal review documented over several reports tested, some reports were not submitted timely as required by the specific award requirements, and two reports did not have supporting documentation on hand. Questioned Costs: None Context: During our testing of reporting and inquiry, it was noted that one of five SF-425 reports, one of two ED-209 reports, four of ten project progress reports, and two of two GPRA performance reports did not have formal documentation of review. In addition, two of two ED-209 reports, five of 10 project progress reports, and two of two GPRA performance reports were not submitted timely. Finally, two of two GPRA reports did not have supporting documentation on hand to support what was submitted. Cause: New reporting requirements to the Commission due to unique nature of COVID funding. Effect: The Commission could have submitted inaccurate reports for reimbursement, or not submitted them timely. Repeat Finding: Yes, Finding 2021-005. Recommendation: We recommend the Commission implement procedures to ensure all reports have proof of review and submission, as well as working towards submitting all reports timely. Views of Responsible Officials: There is no disagreement with the audit finding.
CASEFILE REVIEW Federal Agency: U.S Department of Commerce Federal Program Name: Covid-19 Economic Adjustment Assistance (Economic Development Cluster) Assistance Listing Number: 11.307 Pass-Through Agency: N/A – Direct Pass-Through Numbers: N/A – Direct Federal Award Identification Number and Year: ED20CHI3070088/06-79-06222/06-79-06392; 2022 Compliance Requirement Affected: Reporting Award Period: Year Ended June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: Standard internal control procedures recommend that all reports should have supporting documentation, documentation of review, and documentation of the date of submission. Condition: There was no formal review documented over several reports tested, some reports were not submitted timely as required by the specific award requirements, and two reports did not have supporting documentation on hand. Questioned Costs: None Context: During our testing of reporting and inquiry, it was noted that one of five SF-425 reports, one of two ED-209 reports, four of ten project progress reports, and two of two GPRA performance reports did not have formal documentation of review. In addition, two of two ED-209 reports, five of 10 project progress reports, and two of two GPRA performance reports were not submitted timely. Finally, two of two GPRA reports did not have supporting documentation on hand to support what was submitted. Cause: New reporting requirements to the Commission due to unique nature of COVID funding. Effect: The Commission could have submitted inaccurate reports for reimbursement, or not submitted them timely. Repeat Finding: Yes, Finding 2021-005. Recommendation: We recommend the Commission implement procedures to ensure all reports have proof of review and submission, as well as working towards submitting all reports timely. Views of Responsible Officials: There is no disagreement with the audit finding.
CASEFILE REVIEW Federal Agency: U.S Department of Commerce Federal Program Name: Covid-19 Economic Adjustment Assistance (Economic Development Cluster) Assistance Listing Number: 11.307 Pass-Through Agency: N/A – Direct Pass-Through Numbers: N/A – Direct Federal Award Identification Number and Year: ED20CHI3070088/06-79-06222/06-79-06392; 2022 Compliance Requirement Affected: Reporting Award Period: Year Ended June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: Standard internal control procedures recommend that all reports should have supporting documentation, documentation of review, and documentation of the date of submission. Condition: There was no formal review documented over several reports tested, some reports were not submitted timely as required by the specific award requirements, and two reports did not have supporting documentation on hand. Questioned Costs: None Context: During our testing of reporting and inquiry, it was noted that one of five SF-425 reports, one of two ED-209 reports, four of ten project progress reports, and two of two GPRA performance reports did not have formal documentation of review. In addition, two of two ED-209 reports, five of 10 project progress reports, and two of two GPRA performance reports were not submitted timely. Finally, two of two GPRA reports did not have supporting documentation on hand to support what was submitted. Cause: New reporting requirements to the Commission due to unique nature of COVID funding. Effect: The Commission could have submitted inaccurate reports for reimbursement, or not submitted them timely. Repeat Finding: Yes, Finding 2021-005. Recommendation: We recommend the Commission implement procedures to ensure all reports have proof of review and submission, as well as working towards submitting all reports timely. Views of Responsible Officials: There is no disagreement with the audit finding.
CASEFILE REVIEW Federal Agency: U.S Department of Commerce Federal Program Name: Covid-19 Economic Adjustment Assistance (Economic Development Cluster) Assistance Listing Number: 11.307 Pass-Through Agency: N/A – Direct Pass-Through Numbers: N/A – Direct Federal Award Identification Number and Year: ED20CHI3070088/06-79-06222/06-79-06392; 2022 Compliance Requirement Affected: Reporting Award Period: Year Ended June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: Standard internal control procedures recommend that all reports should have supporting documentation, documentation of review, and documentation of the date of submission. Condition: There was no formal review documented over several reports tested, some reports were not submitted timely as required by the specific award requirements, and two reports did not have supporting documentation on hand. Questioned Costs: None Context: During our testing of reporting and inquiry, it was noted that one of five SF-425 reports, one of two ED-209 reports, four of ten project progress reports, and two of two GPRA performance reports did not have formal documentation of review. In addition, two of two ED-209 reports, five of 10 project progress reports, and two of two GPRA performance reports were not submitted timely. Finally, two of two GPRA reports did not have supporting documentation on hand to support what was submitted. Cause: New reporting requirements to the Commission due to unique nature of COVID funding. Effect: The Commission could have submitted inaccurate reports for reimbursement, or not submitted them timely. Repeat Finding: Yes, Finding 2021-005. Recommendation: We recommend the Commission implement procedures to ensure all reports have proof of review and submission, as well as working towards submitting all reports timely. Views of Responsible Officials: There is no disagreement with the audit finding.