Audit 22462

FY End
2022-12-31
Total Expended
$2.54M
Findings
2
Programs
3
Organization: Milo Water District (ME)
Year: 2022 Accepted: 2023-08-01
Auditor: Hmv LLC

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
20964 2022-001 - - P
597406 2022-001 - - P

Contacts

Name Title Type
F15PJCK132X1 Adam Leprevost Auditee
2079432501 Nicholas Henry Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: All federal awards received directly from federal agencies as well as federal awards passed through other governmental agencies are included on the Schedule. The information in the Schedule is presented in accordance with the audit 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). Because the Schedule presents only a selected portion of the operations of Milo Water District, it is not intended to, and does not, present the financial position, changes in net position or cash flows of Milo Water District. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable, or are limited to reimbursement. The Milo Water District has not elected to use the 10% de minimis indirect cost rate. Amounts included in the Schedule include only federal portions of the award; nonfederal portions are not included in the Schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES (10.760) - Balances outstanding at the end of the audit period were 1377005.
Title: Contingency Note Accounting Policies: All federal awards received directly from federal agencies as well as federal awards passed through other governmental agencies are included on the Schedule. The information in the Schedule is presented in accordance with the audit 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). Because the Schedule presents only a selected portion of the operations of Milo Water District, it is not intended to, and does not, present the financial position, changes in net position or cash flows of Milo Water District. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable, or are limited to reimbursement. The Milo Water District has not elected to use the 10% de minimis indirect cost rate. Amounts included in the Schedule include only federal portions of the award; nonfederal portions are not included in the Schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Federal award amounts received are subject to audit and adjustment. If any expenditures or expenses are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would be a liability to Milo Water District. In the opinion of management, all federal expenditures are in compliance with the terms of the grant agreements and applicable federal and state laws and regulations.
Title: Loan Program Note Accounting Policies: All federal awards received directly from federal agencies as well as federal awards passed through other governmental agencies are included on the Schedule. The information in the Schedule is presented in accordance with the audit 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). Because the Schedule presents only a selected portion of the operations of Milo Water District, it is not intended to, and does not, present the financial position, changes in net position or cash flows of Milo Water District. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable, or are limited to reimbursement. The Milo Water District has not elected to use the 10% de minimis indirect cost rate. Amounts included in the Schedule include only federal portions of the award; nonfederal portions are not included in the Schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Water and Waste Disposal Systems for Rural Communities Program, CFDA #10.760, includes two loans from the U.S. Department of Agriculture Rural Development Program with outstanding balances totaling $1,377,005 at December 31, 2022.
Title: reconciliation of Schedule to the Financial statements Accounting Policies: All federal awards received directly from federal agencies as well as federal awards passed through other governmental agencies are included on the Schedule. The information in the Schedule is presented in accordance with the audit 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). Because the Schedule presents only a selected portion of the operations of Milo Water District, it is not intended to, and does not, present the financial position, changes in net position or cash flows of Milo Water District. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable, or are limited to reimbursement. The Milo Water District has not elected to use the 10% de minimis indirect cost rate. Amounts included in the Schedule include only federal portions of the award; nonfederal portions are not included in the Schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures per the Schedule 2,536,424Less: Federal Loan Program Expenditures(1,377,005)Grant Expenditures per the Schedule 1,159,419Statement of Revenues, Expenses and Changes in Fund Net Position: Grant Revenues 1,159,419

Finding Details

2022-001 Written Policies Relative to Federal Awards Criteria: 2 CFR 200, Subparts D and E of the Uniform Guidance require recipients of federal awards to have written policies relative to federal awards. Condition: Milo Water District (the District) does not have specific written policies relative to federal awards. Cause: The District was unaware of the specific written policy requirements relative to federal awards stated in the Uniform Guidance. Effect: The District was not incompliance with Uniform Guidance requirements to establish specific policies relative to federal awards. Recommendation: We recommend written policies be created relative to federal awards that comply with all requirements of 2 CFR 200, Subparts D and E of the Uniform Guidance. Management?s Response: Management agrees with this recommendation and will work on creating written policies relative to federal awards.
2022-001 Written Policies Relative to Federal Awards Criteria: 2 CFR 200, Subparts D and E of the Uniform Guidance require recipients of federal awards to have written policies relative to federal awards. Condition: Milo Water District (the District) does not have specific written policies relative to federal awards. Cause: The District was unaware of the specific written policy requirements relative to federal awards stated in the Uniform Guidance. Effect: The District was not incompliance with Uniform Guidance requirements to establish specific policies relative to federal awards. Recommendation: We recommend written policies be created relative to federal awards that comply with all requirements of 2 CFR 200, Subparts D and E of the Uniform Guidance. Management?s Response: Management agrees with this recommendation and will work on creating written policies relative to federal awards.