FAC Explorer

Audit 291137

FY End
2022-12-31
Total Expended
$1.10M
Findings
2
Programs
6
Organization: Kansas Alliance for Wetlands and Streams INC (KS)
Year: 2022 Accepted: 2024-02-20
Auditor: Regier Carr & Monroe

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
369691 2022-001 Material Weakness - P
946133 2022-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
15.611 Wildlife Restoration and Basic Hunter Education $156,364 - 0
10.932 Regional Conservation Partnership Program $65,901 - 0
20.219 Recreational Trails Program $36,769 - 0
10.931 Agricultural Conservation Easement Program $17,063 - 0
66.460 Nonpoint Source Implementation Grants $16,619 Yes 0
10.912 Environmental Quality Incentives Program $14,808 - 0

Contacts

Name Title Type
GF2KNMH55CJ6 Libby Albers Auditee
3162043146 Laura Lehmer Auditor
No contacts on file

Notes to SEFA

Title: 1. Basis of Presentation Accounting Policies: 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 as to reimbursement. De Minimis Rate Used: N Rate Explanation: Kansas Alliance for Wetlands and Streams, Inc. has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Kansas Alliance for Wetlands and Streams, Inc. under programs of the federal government for the year ended December 31, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 Kansas Alliance for Wetlands and Streams, Inc., it is not intended to and does not present the financial position, changes in net position, or cash flows of Kansas Alliance for Wetlands and Streams, Inc.
Title: 2. Summary of Significant Accounting Policies Accounting Policies: 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 as to reimbursement. De Minimis Rate Used: N Rate Explanation: Kansas Alliance for Wetlands and Streams, Inc. has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. 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 as to reimbursement.
Title: 3. Indirect Cost Rate Accounting Policies: 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 as to reimbursement. De Minimis Rate Used: N Rate Explanation: Kansas Alliance for Wetlands and Streams, Inc. has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Kansas Alliance for Wetlands and Streams, Inc. has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2022-001
Criteria: The QuickBooks file is maintained by an external accountant; a copy of the QuickBooks file is not provided to the Organization. The external accountant compiles the financial statements on a monthly basis for management. A breakout of the grants is not included in the compiled financial statements. Job reports are provided to management on an interim basis from QuickBooks for management to complete grant reporting. The Organization also lacks controls and segregation of duties over the deposit process. Condition and Context: While material variances were not ultimately noted during testing, discrepancies were found on multiple awards between the QuickBooks file and the filed reports. The QuickBooks data appears to have been changed subsequent to the reports being provided to management for grant reporting. The deposits are primarily handled by one person with little oversight. Timing differences may occur between receipt of payment and deposit into the financial institution. Effect: The grant reports filed did not match the expenses in QuickBooks, which could lead to incorrect filings and requests for reimbursement. Receipts could potentially be misappropriated. The financial records may not reflect the correct revenue and/or receivables for the period due to timing differences. Cause: Expenses were changed after a report was given to the Organization and amended grant reports were not filed. The QuickBooks data is not being reviewed by the Organization once a grant report is filed. The information provided to the Organization is only for the current period grant report. There is not currently a review and/or reconciliation of the bank statement in comparison to the deposit log. Recommendation: The Organization should review the information posted in QuickBooks for accurate reporting, which could include a Profit and Loss by Job report. Implementation of procedures to ensure the Organization is reviewing the QuickBooks data and looking over revenue and expenses for each grant. The QuickBooks file could be locked after month-end close to mitigate changes subsequent to information being provided to management. We recommend routine review and reconciliation of the bank statement to ensure all receipts are included and activity through the bank accounts appear to be in accordance with the activities of the Organization. Management Response: Management agrees with finding. Procedures are being implemented to ensure an appropriate review process, see attached corrective action plan.
Finding 2022-001
Criteria: The QuickBooks file is maintained by an external accountant; a copy of the QuickBooks file is not provided to the Organization. The external accountant compiles the financial statements on a monthly basis for management. A breakout of the grants is not included in the compiled financial statements. Job reports are provided to management on an interim basis from QuickBooks for management to complete grant reporting. The Organization also lacks controls and segregation of duties over the deposit process. Condition and Context: While material variances were not ultimately noted during testing, discrepancies were found on multiple awards between the QuickBooks file and the filed reports. The QuickBooks data appears to have been changed subsequent to the reports being provided to management for grant reporting. The deposits are primarily handled by one person with little oversight. Timing differences may occur between receipt of payment and deposit into the financial institution. Effect: The grant reports filed did not match the expenses in QuickBooks, which could lead to incorrect filings and requests for reimbursement. Receipts could potentially be misappropriated. The financial records may not reflect the correct revenue and/or receivables for the period due to timing differences. Cause: Expenses were changed after a report was given to the Organization and amended grant reports were not filed. The QuickBooks data is not being reviewed by the Organization once a grant report is filed. The information provided to the Organization is only for the current period grant report. There is not currently a review and/or reconciliation of the bank statement in comparison to the deposit log. Recommendation: The Organization should review the information posted in QuickBooks for accurate reporting, which could include a Profit and Loss by Job report. Implementation of procedures to ensure the Organization is reviewing the QuickBooks data and looking over revenue and expenses for each grant. The QuickBooks file could be locked after month-end close to mitigate changes subsequent to information being provided to management. We recommend routine review and reconciliation of the bank statement to ensure all receipts are included and activity through the bank accounts appear to be in accordance with the activities of the Organization. Management Response: Management agrees with finding. Procedures are being implemented to ensure an appropriate review process, see attached corrective action plan.