Audit 291757

FY End
2023-06-30
Total Expended
$3.78M
Findings
2
Programs
18
Year: 2023 Accepted: 2024-02-22

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
370196 2023-001 Significant Deficiency - L
946638 2023-001 Significant Deficiency - L

Contacts

Name Title Type
K12ZE7954DM6 Kathy Terbovitz Auditee
4062656746 Keegan Witt Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) is presented on the accrual basis of accounting, which is the same basis of accounting used for financial reporting purposes. The 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). Expenditures are recognized following the cost principles contained in the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of District IV, it is not intended to and does not present the financial position, changes in net assets, or cash flows of District IV. De Minimis Rate Used: N Rate Explanation: District IV has not elected to use the 10 percent de minimis indirect cost rate method allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) is presented on the accrual basis of accounting, which is the same basis of accounting used for financial reporting purposes. The 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). Expenditures are recognized following the cost principles contained in the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of District IV, it is not intended to and does not present the financial position, changes in net assets, or cash flows of District IV.
Title: PROGRAM DESCRIPTIONS Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) is presented on the accrual basis of accounting, which is the same basis of accounting used for financial reporting purposes. The 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). Expenditures are recognized following the cost principles contained in the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of District IV, it is not intended to and does not present the financial position, changes in net assets, or cash flows of District IV. De Minimis Rate Used: N Rate Explanation: District IV has not elected to use the 10 percent de minimis indirect cost rate method allowed under Uniform Guidance. District IV is a not-for-profit corporation located in Havre, Montana. District IV is part of a national network of community agencies that were created by the federal government to combat poverty. District IV partners with various agencies to provide basic needs services within north eastern Montana.
Title: INDIRECT COST RATE Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) is presented on the accrual basis of accounting, which is the same basis of accounting used for financial reporting purposes. The 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). Expenditures are recognized following the cost principles contained in the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of District IV, it is not intended to and does not present the financial position, changes in net assets, or cash flows of District IV. De Minimis Rate Used: N Rate Explanation: District IV has not elected to use the 10 percent de minimis indirect cost rate method allowed under Uniform Guidance. District IV has not elected to use the 10 percent de minimis indirect cost rate method allowed under Uniform Guidance.

Finding Details

2023 – 001 BASIS FOR DETERMINING FEDERAL AWARDS EXPENDED – SEFA EXPENDITURES Criteria: 2 CFR § 200.502 explains that the value of Federal awards expended under loan programs, the use of loan proceeds under loan and loan guarantee programs are to be reported on the Schedule of Federal Expenditures of Federal Awards. Condition: The Schedule of Federal Expenditures of Federal Awards did not appropriately present the USDA Loans. Cause: The Council should make sure that expenditures are appropriately characterized as loans or federal grant expenditures. Effect: Loans may not be correctly reported on the Schedule of Expenditures of Federal Awards. Questioned Cost: -0-. Recommendation: We recommend that the Schedule of Federal Expenditures of Federal Awards appropriately includes and measures loans and loan guarantees in accordance with 2 CFR § 200.502(b) and (c) of the Uniform Guidance.
2023 – 001 BASIS FOR DETERMINING FEDERAL AWARDS EXPENDED – SEFA EXPENDITURES Criteria: 2 CFR § 200.502 explains that the value of Federal awards expended under loan programs, the use of loan proceeds under loan and loan guarantee programs are to be reported on the Schedule of Federal Expenditures of Federal Awards. Condition: The Schedule of Federal Expenditures of Federal Awards did not appropriately present the USDA Loans. Cause: The Council should make sure that expenditures are appropriately characterized as loans or federal grant expenditures. Effect: Loans may not be correctly reported on the Schedule of Expenditures of Federal Awards. Questioned Cost: -0-. Recommendation: We recommend that the Schedule of Federal Expenditures of Federal Awards appropriately includes and measures loans and loan guarantees in accordance with 2 CFR § 200.502(b) and (c) of the Uniform Guidance.