Audit 293513

FY End
2023-09-30
Total Expended
$1.14M
Findings
2
Programs
1
Year: 2023 Accepted: 2024-03-05

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
372191 2023-001 Material Weakness Yes L
948633 2023-001 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
11.307 Economic Adjustment Assistance $1.14M Yes 1

Contacts

Name Title Type
EU6BZNJ5VJK5 Fran White Auditee
6057160012 Traci Hanson Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Basis of Presentation and Summary of Significant Accounting Policies Accounting Policies: Note 1 – Basis of Presentation and Summary of Significant Accounting Policies The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Organization under programs of the federal government for the year ended September 30, 2023. 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). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting and grant guidance (see Note 3). 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: Note 2 – Indirect Cost Rate The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Note 1 – Basis of Presentation and Summary of Significant Accounting Policies The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Organization under programs of the federal government for the year ended September 30, 2023. 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). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting and grant guidance (see Note 3). 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: Note 2 – Indirect Cost Rate Accounting Policies: Note 1 – Basis of Presentation and Summary of Significant Accounting Policies The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Organization under programs of the federal government for the year ended September 30, 2023. 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). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting and grant guidance (see Note 3). 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: Note 2 – Indirect Cost Rate The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Note 2 – Indirect Cost Rate The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 3 – Calculations were as follows: Accounting Policies: Note 1 – Basis of Presentation and Summary of Significant Accounting Policies The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Organization under programs of the federal government for the year ended September 30, 2023. 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). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting and grant guidance (see Note 3). 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: Note 2 – Indirect Cost Rate The Organization has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Note 3 – Calculations were as follows: RLF Principal Outstanding $ 994,549 Cash in RLF 114,481 Administrative Expenses 33,665 1,142,695 Federal Share 100.00% $ 1,142,695

Finding Details

#2023-001 FINDING: Financial Statement and Schedule of Expenditures of Federal Awards (SEFA) Preparation Federal Program Affected: Economic Adjustment Assistance – 2021 CARES Act RLF, Assistance Listing #11.307. Compliance Requirement: Reporting. Questioned Costs: None. Condition and Cause: We were requested to draft the audited financial statements, related footnote disclosures, and SEFA as part of our regular audit services. Ultimately, it is management’s responsibility to provide for the preparation of the Organization’s statements, footnotes, and SEFA, and the responsibility of the auditor to determine the fairness of presentation of those statements. From a practical standpoint, we do both for you at the same time in connection with our audit. This is not unusual for us to do this with organizations of your size. Criteria and Effect: This control deficiency could result in a material misstatement to the financial statements or SEFA that would not be prevented or detected by your Organization’s internal control system. Repeat Finding from Prior Year: Yes, prior year finding #2022-001. Recommendation: We have instructed management to review a draft of the auditor prepared financial statements and SEFA in detail for their accuracy. It is the responsibility of management and those charged with governance to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Views of Responsible Officials Corrective Action Plan: See Organization’s Corrective Action Plan
#2023-001 FINDING: Financial Statement and Schedule of Expenditures of Federal Awards (SEFA) Preparation Federal Program Affected: Economic Adjustment Assistance – 2021 CARES Act RLF, Assistance Listing #11.307. Compliance Requirement: Reporting. Questioned Costs: None. Condition and Cause: We were requested to draft the audited financial statements, related footnote disclosures, and SEFA as part of our regular audit services. Ultimately, it is management’s responsibility to provide for the preparation of the Organization’s statements, footnotes, and SEFA, and the responsibility of the auditor to determine the fairness of presentation of those statements. From a practical standpoint, we do both for you at the same time in connection with our audit. This is not unusual for us to do this with organizations of your size. Criteria and Effect: This control deficiency could result in a material misstatement to the financial statements or SEFA that would not be prevented or detected by your Organization’s internal control system. Repeat Finding from Prior Year: Yes, prior year finding #2022-001. Recommendation: We have instructed management to review a draft of the auditor prepared financial statements and SEFA in detail for their accuracy. It is the responsibility of management and those charged with governance to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Views of Responsible Officials Corrective Action Plan: See Organization’s Corrective Action Plan