FAC Explorer

Audit 21652

FY End
2022-09-30
Total Expended
$2.41M
Findings
2
Programs
1
Organization: The Utilities Board of the City of Opp (AL)
Year: 2022 Accepted: 2023-04-12
Auditor: Carr Riggs & Ingram LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
25007 2022-001 Material Weakness Yes AB
601449 2022-001 Material Weakness Yes AB

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $2.41M Yes 1

Contacts

Name Title Type
JCHRTJ881QL1 Stacey Parker Auditee
3344935221 Melissa Barnes Auditor
No contacts on file

Notes to SEFA

Title: Note 5: FEDERAL PASS-THROUGH FUNDS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal spending of The Utilities Board of the City of Opp (the Board) and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Board, it is not intended to and does not represent the financial position of the Board. De Minimis Rate Used: N Rate Explanation: The Board has not elected to use the 10% de minimis cost rate. The Board is also the subrecipient of federal funds that have been subjected to testing and are reported as expenditures and listed as federal pass-through funds. Federal awards other than those indicated as pass-through are considered direct.
Title: Note 6: CONTINGENCIES Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal spending of The Utilities Board of the City of Opp (the Board) and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Board, it is not intended to and does not represent the financial position of the Board. De Minimis Rate Used: N Rate Explanation: The Board has not elected to use the 10% de minimis cost rate. Grant monies received and disbursed by the Board are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the Board does not believe that such disallowance, if any, would have a material effect on the financial position of the Board. As of March 17, 2023, there were no known material questioned or disallowed costs as a result of grant audits in process or completed.
Title: Note 7: NONCASH AWARDS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal spending of The Utilities Board of the City of Opp (the Board) and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Board, it is not intended to and does not represent the financial position of the Board. De Minimis Rate Used: N Rate Explanation: The Board has not elected to use the 10% de minimis cost rate. During the year ended September 30, 2022, the Board did not receive any non-cash federal awards.
Title: Note 8: FEDERALLY FUNDED INSURANCE Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal spending of The Utilities Board of the City of Opp (the Board) and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Board, it is not intended to and does not represent the financial position of the Board. De Minimis Rate Used: N Rate Explanation: The Board has not elected to use the 10% de minimis cost rate. During the year ended September 30, 2022, the Board had no federally funded insurance.
Title: Note 3: LOANS AND LOAN GUARANTEES Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal spending of The Utilities Board of the City of Opp (the Board) and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Board, it is not intended to and does not represent the financial position of the Board. De Minimis Rate Used: N Rate Explanation: The Board has not elected to use the 10% de minimis cost rate. The Board had expenditures of $2,406,325 related to a loan program with the Water and Waste Disposal Systems for Rural Communities which are required to be reported on the schedule for the fiscal year ended September 30, 2022. As of September 30, 2022, there were no amounts outstanding for loans with the U.S. Department of Agriculture.
Title: Note 4: SUBRECIPIENTS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal spending of The Utilities Board of the City of Opp (the Board) and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Board, it is not intended to and does not represent the financial position of the Board. De Minimis Rate Used: N Rate Explanation: The Board has not elected to use the 10% de minimis cost rate. The Board did not provide federal funds to subrecipients for the fiscal year ending September 30, 2022.

Finding Details

Finding 2022-001
Item 2022-001 Written policies, procedures, and standards of conduct Water and Waste Disposal Systems for Rural Communities Assistance Listing Number 10.760 U.S. Department of Agriculture Grant period: Year ended September 30, 2022 Questioned Costs ? $0 Condition ? The Board does not have all of the written policies, procedures and standards of conduct required by UG. Criteria ? Grantees should have written policies, procedures, and standards of conduct as required by 2 CFR 200, Subparts D & E of the Uniform Guidance. 2 CFR 200, Subparts D & E requires the non-Federal entity to establish and maintain written policies, procedures, and standards of conduct including internal controls over the Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award. Specific requirements relate to the following: ? ? 200.302 Financial management ? ? 200.305 Payment ? ? 200.319 Competition ? ? 200.320 Methods of procurement to be followed ? ? 200.430 Compensation?personal services ? ? 200.431 Compensation?fringe benefits Cause of Condition ? The Board has failed to prepare written policies, procedures, and standards of conduct as required by 2 CFR 200, Subparts D & E of the Uniform Guidance. Potential Effect of Condition ? Lack of written policies, procedures, and standards of conduct could result in noncompliance related to federal awards. Recommendation ? We recommend that the Board implement the required written policies and procedures. Audit finding 2022-001 relates to prior year 2021-001 finding. Updated reference number to current audit year 2022.
Finding 2022-001
Item 2022-001 Written policies, procedures, and standards of conduct Water and Waste Disposal Systems for Rural Communities Assistance Listing Number 10.760 U.S. Department of Agriculture Grant period: Year ended September 30, 2022 Questioned Costs ? $0 Condition ? The Board does not have all of the written policies, procedures and standards of conduct required by UG. Criteria ? Grantees should have written policies, procedures, and standards of conduct as required by 2 CFR 200, Subparts D & E of the Uniform Guidance. 2 CFR 200, Subparts D & E requires the non-Federal entity to establish and maintain written policies, procedures, and standards of conduct including internal controls over the Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award. Specific requirements relate to the following: ? ? 200.302 Financial management ? ? 200.305 Payment ? ? 200.319 Competition ? ? 200.320 Methods of procurement to be followed ? ? 200.430 Compensation?personal services ? ? 200.431 Compensation?fringe benefits Cause of Condition ? The Board has failed to prepare written policies, procedures, and standards of conduct as required by 2 CFR 200, Subparts D & E of the Uniform Guidance. Potential Effect of Condition ? Lack of written policies, procedures, and standards of conduct could result in noncompliance related to federal awards. Recommendation ? We recommend that the Board implement the required written policies and procedures. Audit finding 2022-001 relates to prior year 2021-001 finding. Updated reference number to current audit year 2022.