FAC Explorer

Audit 23478

FY End
2022-06-30
Total Expended
$1.73M
Findings
2
Programs
4
Organization: South Tahoe Public Utility District (CA)
Year: 2022 Accepted: 2023-01-23
Auditor: Mann Urrutia Nelson CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
19850 2022-001 - - B
596292 2022-001 - - B

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $633,707 Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $408,153 Yes 1
15.507 Watersmart (sustaining and Manage America's Resources for Tomorrow) $75,000 - 0
97.039 Hazard Mitigation Grant $71,720 - 0

Contacts

Name Title Type
NPEMHJBC7T15 Paul Hughes Auditee
5305436211 Erica Pastor Auditor
No contacts on file

Notes to SEFA

Title: Note 1: Scope of Audit Pursuant to Uniform Guidance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards has been prepared on the accrual basis of accounting. Grant and contract revenues are recorded for financial reporting purposes when the District has met the qualifications for the respective grants and contracts. De Minimis Rate Used: N Rate Explanation: The District elected not to use the 10% de minimus indirect cost rate, and did not charge indirect costs to federal grants during the year ended June 30, 2022. The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance provided to South Tahoe Public Utility District 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).
Title: Note 2: Reporting Entity Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards has been prepared on the accrual basis of accounting. Grant and contract revenues are recorded for financial reporting purposes when the District has met the qualifications for the respective grants and contracts. De Minimis Rate Used: N Rate Explanation: The District elected not to use the 10% de minimus indirect cost rate, and did not charge indirect costs to federal grants during the year ended June 30, 2022. The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the District. The District's reporting entity is defined in Note 1 of the District's financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included in the schedule. When federal awards were received from a pass-through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through entity.
Title: Note 4: Claims Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards has been prepared on the accrual basis of accounting. Grant and contract revenues are recorded for financial reporting purposes when the District has met the qualifications for the respective grants and contracts. De Minimis Rate Used: N Rate Explanation: The District elected not to use the 10% de minimus indirect cost rate, and did not charge indirect costs to federal grants during the year ended June 30, 2022. The District has received federal grants for specific purposes that are subject to review and audit by the Federal Government. Although such audits could result in expenditure disallowances under the grant terms, any required reimbursements are not expected to be material.

Finding Details

Finding 2022-001
Finding 2022-001: Water and Wastewater Arrearages Payment Program Criteria The California Water and Wastewater Arrearage Payment Program was created to provide relief to water and wastewater systems to cover unpaid bills from customers accrued between March 4, 2020 and June 15, 2021. Condition The District claimed arrearages that were accrued outside of the allowable timeframe. In addition, one out of forty customers selected for testing had a claimed amount that was in excess of the allowable arrearage. Cause Due to turnover in the customer service department, the sewer and water arrearages were not correctly calculated. Effect The District initially claimed arrearages that were not eligible for reimbursement under the program. Upon discovery, the District worked with the State of California to calculate the correct amount and subsequently returned any required funds. However, as a result of testing, we noted an additional amount of $178 that needs to be returned to the State. Recommendation We recommend the District review all arrearages claimed to ensure the program guidelines are met and return any additional funds received that do not meet the program guidelines. Views of Responsible Officials The District worked with the State of California to correct arrearages that were outside the allowable timeframe, and subsequently returned any required funds. As a result of the additional $178 noted by the auditors, the District is continuing to review the remaining arrearages to insure only allowable amounts have been reimbursed by the State.
Finding 2022-001
Finding 2022-001: Water and Wastewater Arrearages Payment Program Criteria The California Water and Wastewater Arrearage Payment Program was created to provide relief to water and wastewater systems to cover unpaid bills from customers accrued between March 4, 2020 and June 15, 2021. Condition The District claimed arrearages that were accrued outside of the allowable timeframe. In addition, one out of forty customers selected for testing had a claimed amount that was in excess of the allowable arrearage. Cause Due to turnover in the customer service department, the sewer and water arrearages were not correctly calculated. Effect The District initially claimed arrearages that were not eligible for reimbursement under the program. Upon discovery, the District worked with the State of California to calculate the correct amount and subsequently returned any required funds. However, as a result of testing, we noted an additional amount of $178 that needs to be returned to the State. Recommendation We recommend the District review all arrearages claimed to ensure the program guidelines are met and return any additional funds received that do not meet the program guidelines. Views of Responsible Officials The District worked with the State of California to correct arrearages that were outside the allowable timeframe, and subsequently returned any required funds. As a result of the additional $178 noted by the auditors, the District is continuing to review the remaining arrearages to insure only allowable amounts have been reimbursed by the State.