FAC Explorer

Audit 299811

FY End
2023-06-30
Total Expended
$750,473
Findings
6
Programs
3
Organization: Wyoming Energy Authority (WY)
Year: 2023 Accepted: 2024-03-28
Auditor: McGee Hearne & Paiz LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
387737 2023-002 Significant Deficiency Yes P
387738 2023-005 Significant Deficiency Yes L
387739 2023-006 Significant Deficiency - G
964179 2023-002 Significant Deficiency Yes P
964180 2023-005 Significant Deficiency Yes L
964181 2023-006 Significant Deficiency - G

Programs

ALN Program Spent Major Findings
81.041 State Energy Program $644,344 Yes 3
11.307 Economic Adjustment Assistance $94,963 - 0
10.868 Rural Energy for America Program $11,166 - 0

Contacts

Name Title Type
FF45WXDCMWB8 Jami Blosmo Auditee
3077773521 Brandy Marrou Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Wyoming Energy Authority’s (the Authority) Schedule of Expenditures of Federal Awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained either in Office of Management and Budget Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Authority provided no Federal funds to subrecipients. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Schedule includes the Federal award activity of 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 the 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 position, or cash flows of the Authority.
Title: State Energy Program Revolving Loan Fund (RLF) Accounting Policies: Expenditures reported on the Wyoming Energy Authority’s (the Authority) Schedule of Expenditures of Federal Awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained either in Office of Management and Budget Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Authority provided no Federal funds to subrecipients. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Authority administers an RLF that was originally funded pursuant to the American Recovery and Reinvestment Act of 2009 (ARRA), the loans of which support activities eligible under the State Energy Program (SEP) (Assistance Listing #81.041). Based on guidance provided by the U.S. Department of Energy (DOE), after the first revolution of funds, the ARRA funds retain their Federal character in perpetuity, but subsequent disbursements of funds (i.e., recycled funds) are to be excluded from the Federal expenditures presented in the Schedule. In addition, the Authority may request to repurpose funds toward another eligible SEP activity upon approval from the DOE. All of the funds held by the Authority in the RLF have been recycled. As of July 1, 2022, the balance of the RLF totaled $1,207,130, inclusive of loans outstanding of $750,000. During the year ended June 30, 2023, no loans were made and the Authority repurposed funds totaling $71,303. The balance of loans outstanding at June 30, 2023 was $750,000.

Finding Details

Finding 2023-002
2023-002: Segregation of Duties (Significant Deficiency) Criteria: A fundamental concept in an adequate system of internal control is the segregation of duties, which follows the basic premise that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Condition/context: During the course of our audit, we noted that the Accounting Manager has access to all modules of the accounting system. Specifically, she has the ability to receive, deposit, and record cash receipts; initiate, record, and process general journal entries; and reconcile all accounts. Cause: Due to the small size of the Authority, there is only one individual responsible for its accounting functions, and as such, the ability to properly segregate duties is limited. Effect: Without an adequate segregation of duties, the Authority could be susceptible to a misappropriation of assets and/or inaccurate financial reporting. Questioned costs: $0 Identification as a repeat finding: Yes; see prior-year finding 2022-002. Recommendation: While additional segregation of duties is difficult with the Authority’s limited staffing, management and the Board of Directors should remain cognizant of the lack of an adequate segregation of duties and implement mitigating controls when feasible. We also recommend that the Executive Director and the Board of Directors continue to review financial reconciliations and reports for reasonableness. Views of responsible officials and planned corrective actions: Management concurs with the finding. See Exhibit I.
Finding 2023-005
2023-005: Reporting (Significant Deficiency) Criteria: 2 CFR 200.303 requires a non-Federal entity to establish and maintain effective internal control over a Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, including reliability of reporting for internal and external use. Condition/context: During the completion of the fiscal year 2021 audit, it was identified that the Authority did not have a control system in place that allows for the independent review of the SF-425 financial reports. In January 2022, the Authority established such a control system. However, the Authority has not maintained supporting documentation of the independent review of the reports. Cause: The Authority did not maintain documentation to demonstrate that independent reviews of the reports were performed during the year. Effect: If the Authority does not complete an independent review of its financial reports prior to submission, it is possible that the Authority could submit inaccurate or incomplete information to the U.S. Department of Energy. Questioned costs: $0 Identification as a repeat finding: Yes; see prior-year finding 2022-006. Recommendation: As the Authority has designed a control system to ensure the independent review of the SF-425 financial reports, we recommend that compliance with the established control system be formally documented. Views of responsible officials and planned corrective actions: Management concurs with the finding. See Exhibit I.
Finding 2023-006
2023-006: Level of Effort - Supplement, Not Supplant (Significant Deficiency) Criteria: 10 CFR 420.13(b)(7) requires that a state provide reasonable assurance to the U.S. Department of Energy that it has established policies and procedures designed to assure that Federal financial assistance under this subpart will be used to supplement, and not to supplant, State and local funds and, to the extent practicable, increase the amount of such funds that otherwise would be available, in the absence of such Federal financial assistance, for those activities set forth in the State Energy Program plan approved pursuant to this subpart. Condition/context: The Authority does not have an internal control system in place to evaluate and monitor the level of effort as it pertains to supplement, not supplant. Cause: The Authority was unaware of the compliance requirement. Effect: If the Authority does not monitor this requirement, it is possible that the Authority could utilize Federal funds to supplant its activities. Questioned costs: $0 Identification as a repeat finding: No. Recommendation: We recommend implementing a control system to ensure regular monitoring and evaluation of level of effort as it pertains to supplement, not supplant. Views of responsible officials and planned corrective actions: Management concurs with the finding. See Exhibit I.
Finding 2023-002
2023-002: Segregation of Duties (Significant Deficiency) Criteria: A fundamental concept in an adequate system of internal control is the segregation of duties, which follows the basic premise that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Condition/context: During the course of our audit, we noted that the Accounting Manager has access to all modules of the accounting system. Specifically, she has the ability to receive, deposit, and record cash receipts; initiate, record, and process general journal entries; and reconcile all accounts. Cause: Due to the small size of the Authority, there is only one individual responsible for its accounting functions, and as such, the ability to properly segregate duties is limited. Effect: Without an adequate segregation of duties, the Authority could be susceptible to a misappropriation of assets and/or inaccurate financial reporting. Questioned costs: $0 Identification as a repeat finding: Yes; see prior-year finding 2022-002. Recommendation: While additional segregation of duties is difficult with the Authority’s limited staffing, management and the Board of Directors should remain cognizant of the lack of an adequate segregation of duties and implement mitigating controls when feasible. We also recommend that the Executive Director and the Board of Directors continue to review financial reconciliations and reports for reasonableness. Views of responsible officials and planned corrective actions: Management concurs with the finding. See Exhibit I.
Finding 2023-005
2023-005: Reporting (Significant Deficiency) Criteria: 2 CFR 200.303 requires a non-Federal entity to establish and maintain effective internal control over a Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, including reliability of reporting for internal and external use. Condition/context: During the completion of the fiscal year 2021 audit, it was identified that the Authority did not have a control system in place that allows for the independent review of the SF-425 financial reports. In January 2022, the Authority established such a control system. However, the Authority has not maintained supporting documentation of the independent review of the reports. Cause: The Authority did not maintain documentation to demonstrate that independent reviews of the reports were performed during the year. Effect: If the Authority does not complete an independent review of its financial reports prior to submission, it is possible that the Authority could submit inaccurate or incomplete information to the U.S. Department of Energy. Questioned costs: $0 Identification as a repeat finding: Yes; see prior-year finding 2022-006. Recommendation: As the Authority has designed a control system to ensure the independent review of the SF-425 financial reports, we recommend that compliance with the established control system be formally documented. Views of responsible officials and planned corrective actions: Management concurs with the finding. See Exhibit I.
Finding 2023-006
2023-006: Level of Effort - Supplement, Not Supplant (Significant Deficiency) Criteria: 10 CFR 420.13(b)(7) requires that a state provide reasonable assurance to the U.S. Department of Energy that it has established policies and procedures designed to assure that Federal financial assistance under this subpart will be used to supplement, and not to supplant, State and local funds and, to the extent practicable, increase the amount of such funds that otherwise would be available, in the absence of such Federal financial assistance, for those activities set forth in the State Energy Program plan approved pursuant to this subpart. Condition/context: The Authority does not have an internal control system in place to evaluate and monitor the level of effort as it pertains to supplement, not supplant. Cause: The Authority was unaware of the compliance requirement. Effect: If the Authority does not monitor this requirement, it is possible that the Authority could utilize Federal funds to supplant its activities. Questioned costs: $0 Identification as a repeat finding: No. Recommendation: We recommend implementing a control system to ensure regular monitoring and evaluation of level of effort as it pertains to supplement, not supplant. Views of responsible officials and planned corrective actions: Management concurs with the finding. See Exhibit I.