FAC Explorer

Audit 11836

FY End
2023-06-30
Total Expended
$3.82M
Findings
4
Programs
6
Organization: Nebraska Enterprise Fund (NE)
Year: 2023 Accepted: 2024-01-16
Auditor: Hayes & Associates

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
8696 2023-002 Significant Deficiency - L
8697 2023-002 Significant Deficiency - L
585138 2023-002 Significant Deficiency - L
585139 2023-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.020 Community Development Financial Institutions Program $861,214 - 0
59.046 Microloan Program $424,318 Yes 1
10.870 Rural Microentrepreneur Assistance Program $135,736 - 0
59.050 Prime Technical Assistance $60,190 - 0
59.044 Veterans Outreach Program $19,538 - 0
11.307 Economic Adjustment Assistance $13,190 Yes 0

Contacts

Name Title Type
SEL4A8Z9RJ67 Jane Olson Auditee
4026855500 Austin Hanke Auditor
No contacts on file

Notes to SEFA

Title: Outstanding Loan Balances Accounting Policies: 1.Reporting EntityNebraska Enterprise Fund, (the Organization) serves Nebraska's micro-businesses as a financial intermediary by providing support for programs to assist micro-businesses with loans, training, technical assistance and peer support. The Organization provides the micro-programs with grant funds for operating capital; loan funds to re-lend to businesses; research and product development; capacity building and evaluations. The Organization directly provides resources to micro/small businesses. The Organization makes direct loans to businesses, provides collateral support in the form of certificates of deposits loan guarantees for bank loans, and provides technical assistance to the businesses.2.Basis of AccountingThe schedule of expenditures of federal awards is presented on the accrual basis of accounting.3.Basis of PresentationThe accompanying schedule presents expenditures paid for each federal award program in accordance with the Office of Management and Budget (OMB) Title 2 U.S. Code of Federal Regulations part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal programs are reported as presented in the Catalog of Federal Domestic Assistance (CFDA), whenever possible.4.ContingenciesDuring the normal course of business, the Organization receives funds from the United State Government for program services. Substantially all of these funds are subject to future audit by various federal and state agencies, however, it is managements opinion that resulting adjustments, if any, would not have a material effect upon the accompanying financial statements. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to charge the 10% de minimis indirect cost rate to its federal award programs. As of the year ended June 30, 2023, the outstanding balances for the following loan programs are; Microloan Program – $1,004,357, CDFI Lending – $2,377,324, Economic Adjustment Assistance – $1,203,482.

Finding Details

Finding 2023-002
59.046 MICROLOANS AND TECHNICAL ASSISTANCE GRANT Condition: The organization was unable to submit the 2022 audited financial statements to the SBA within the required 180-day reporting period. Additionally, proof of timely submission of first quarter quarterly reports for the Microloan program was not available. Criteria: During the reporting period the organization is required to submit various reports on the status of the SBA microloan program and technical assistance grant within a specified timeframe after each reporting period ends. Cause: Due to delays in the completion of the June 30, 2022, financial statement audit, audited financial statements were not able to be sent to the SBA within 180 days after year end. Additionally, proof of timely submission of the first quarter quarterly reports for the Microloan program was not retained. Effect: Audited financial statements were not submitted timely and it was not possible to verify the timely submission of the first quarter quarterly reports. Recommendation: To ensure timely preparation of the audited financial statements for submission we recommend the Organization to implement additional yearend closing procedures and review of required GAAP adjustments prior to the audit. We also recommend the organization implement a data retention policy to retain copies of report submissions for reports submitted via email. Response: Management will review its year-end accounting and internal control procedures and implement improvements where practical.
Finding 2023-002
59.046 MICROLOANS AND TECHNICAL ASSISTANCE GRANT Condition: The organization was unable to submit the 2022 audited financial statements to the SBA within the required 180-day reporting period. Additionally, proof of timely submission of first quarter quarterly reports for the Microloan program was not available. Criteria: During the reporting period the organization is required to submit various reports on the status of the SBA microloan program and technical assistance grant within a specified timeframe after each reporting period ends. Cause: Due to delays in the completion of the June 30, 2022, financial statement audit, audited financial statements were not able to be sent to the SBA within 180 days after year end. Additionally, proof of timely submission of the first quarter quarterly reports for the Microloan program was not retained. Effect: Audited financial statements were not submitted timely and it was not possible to verify the timely submission of the first quarter quarterly reports. Recommendation: To ensure timely preparation of the audited financial statements for submission we recommend the Organization to implement additional yearend closing procedures and review of required GAAP adjustments prior to the audit. We also recommend the organization implement a data retention policy to retain copies of report submissions for reports submitted via email. Response: Management will review its year-end accounting and internal control procedures and implement improvements where practical.
Finding 2023-002
59.046 MICROLOANS AND TECHNICAL ASSISTANCE GRANT Condition: The organization was unable to submit the 2022 audited financial statements to the SBA within the required 180-day reporting period. Additionally, proof of timely submission of first quarter quarterly reports for the Microloan program was not available. Criteria: During the reporting period the organization is required to submit various reports on the status of the SBA microloan program and technical assistance grant within a specified timeframe after each reporting period ends. Cause: Due to delays in the completion of the June 30, 2022, financial statement audit, audited financial statements were not able to be sent to the SBA within 180 days after year end. Additionally, proof of timely submission of the first quarter quarterly reports for the Microloan program was not retained. Effect: Audited financial statements were not submitted timely and it was not possible to verify the timely submission of the first quarter quarterly reports. Recommendation: To ensure timely preparation of the audited financial statements for submission we recommend the Organization to implement additional yearend closing procedures and review of required GAAP adjustments prior to the audit. We also recommend the organization implement a data retention policy to retain copies of report submissions for reports submitted via email. Response: Management will review its year-end accounting and internal control procedures and implement improvements where practical.
Finding 2023-002
59.046 MICROLOANS AND TECHNICAL ASSISTANCE GRANT Condition: The organization was unable to submit the 2022 audited financial statements to the SBA within the required 180-day reporting period. Additionally, proof of timely submission of first quarter quarterly reports for the Microloan program was not available. Criteria: During the reporting period the organization is required to submit various reports on the status of the SBA microloan program and technical assistance grant within a specified timeframe after each reporting period ends. Cause: Due to delays in the completion of the June 30, 2022, financial statement audit, audited financial statements were not able to be sent to the SBA within 180 days after year end. Additionally, proof of timely submission of the first quarter quarterly reports for the Microloan program was not retained. Effect: Audited financial statements were not submitted timely and it was not possible to verify the timely submission of the first quarter quarterly reports. Recommendation: To ensure timely preparation of the audited financial statements for submission we recommend the Organization to implement additional yearend closing procedures and review of required GAAP adjustments prior to the audit. We also recommend the organization implement a data retention policy to retain copies of report submissions for reports submitted via email. Response: Management will review its year-end accounting and internal control procedures and implement improvements where practical.