Audit 298291

FY End
2023-06-30
Total Expended
$774,520
Findings
2
Programs
3
Year: 2023 Accepted: 2024-03-27

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
385476 2023-001 Significant Deficiency - L
961918 2023-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
15.252 Abandoned Mine Land Reclamation (amlr) Program $303,452 - 0
20.219 Recreational Trails Program $261,823 - 0
11.307 Economic Adjustment Assistance $209,245 Yes 1

Contacts

Name Title Type
LH1VLUN2P7N3 Jeffery Lusk Auditee
3047523255 Justin Schumaker Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority does not use the 10% de minimis indirect cost rate allowed under Uniform Guidance as the Federal programs administered by the Authority do not include charges for indirect costs. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hatfield-McCoy Regional Recreation Authority (the Authority) under programs of the federal government for the year ended June 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 Authority it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Authority.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority does not use the 10% de minimis indirect cost rate allowed under Uniform Guidance as the Federal programs administered by the Authority do not include charges for indirect costs. Expenditures reported on the Schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority does not use the 10% de minimis indirect cost rate allowed under Uniform Guidance as the Federal programs administered by the Authority do not include charges for indirect costs. The Authority does not use the 10% de minimis indirect cost rate allowed under Uniform Guidance as the Federal programs administered by the Authority do not include charges for indirect costs.

Finding Details

Federal Program: Economic Development Cluster: Economic Adjustment Assistance Assistance Listing Number: 11.307 Federal Agency: U.S. Department of Commerce Pass-through Agency: N/A Award Number: N/A Award Year: 2023 Compliance Requirement: Reporting Questioned Costs: None Criteria: As required by the grant agreement, the Authority must submit a Form SF-425, Federal Financial Report, on a semi-annual basis for the periods ending March 31, and September 30 for the entire project period. Condition and Context: The Authority did not submit the Form SF-425, Federal Financial Report, for the period of September 30, 2022. Effect: The Authority has failed to comply with the terms of the grant agreement. Cause: The Authority did not have sufficient internal controls in place to monitor on-going compliance with the grant agreement. Recommendation: We recommend that management implement procedures to ensure that all grant agreements are reviewed on an on-going basis and that compliance requirements are recorded and tracked to ensure on-going compliance. View of Responsible Officials: Management agrees with this finding and has implemented controls to monitor on-going compliance with grant agreements. Additionally, when management became aware of the non-compliance, a Form SF-425, Federal Financial Report, was submitted for the period of September 30, 2022. The submission was approved by U.S. Department of Commerce on February 6, 2023.
Federal Program: Economic Development Cluster: Economic Adjustment Assistance Assistance Listing Number: 11.307 Federal Agency: U.S. Department of Commerce Pass-through Agency: N/A Award Number: N/A Award Year: 2023 Compliance Requirement: Reporting Questioned Costs: None Criteria: As required by the grant agreement, the Authority must submit a Form SF-425, Federal Financial Report, on a semi-annual basis for the periods ending March 31, and September 30 for the entire project period. Condition and Context: The Authority did not submit the Form SF-425, Federal Financial Report, for the period of September 30, 2022. Effect: The Authority has failed to comply with the terms of the grant agreement. Cause: The Authority did not have sufficient internal controls in place to monitor on-going compliance with the grant agreement. Recommendation: We recommend that management implement procedures to ensure that all grant agreements are reviewed on an on-going basis and that compliance requirements are recorded and tracked to ensure on-going compliance. View of Responsible Officials: Management agrees with this finding and has implemented controls to monitor on-going compliance with grant agreements. Additionally, when management became aware of the non-compliance, a Form SF-425, Federal Financial Report, was submitted for the period of September 30, 2022. The submission was approved by U.S. Department of Commerce on February 6, 2023.