FAC Explorer

Audit 305532

FY End
2023-12-31
Total Expended
$3.04M
Findings
2
Programs
4
Organization: Metropolitan Economic Development Association (MN)
Year: 2023 Accepted: 2024-05-06
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
395904 2023-002 Significant Deficiency - I
972346 2023-002 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
21.033 Community Development Financial Institutions Fund Equitable Recovery Program (cdfi Erp) $2.56M Yes 1
11.805 Mbda Business Center $420,167 - 0
59.005 Small Business Development Center Program $46,674 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $12,600 - 0

Contacts

Name Title Type
D4AEJBK74GM5 Nelly Chick Auditee
6122596593 Hannah Horn Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: Meda has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the Metropolitan Economic Development Association (Meda) under programs of the Federal Government for the year ended December 31, 2023. The information 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 Meda, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Meda.
Title: Note 2 – Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: Meda has not elected to use the 10% de minimis cost rate. Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient.
Title: Note 3 – Indirect Cost Rate Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: Meda has not elected to use the 10% de minimis cost rate. Meda has not elected to use the 10% de minimis cost rate.

Finding Details

Finding 2023-002
Department of Treasury Federal Financial Assistance Listing 21.033, Award 22ERP060843 Community Development Financial Institutions Equitable Recovery Program (CDFI ERP) Suspension & Debarment Significant Deficiency in Internal Control over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: In our testing of procurement, suspension, and debarment, it was identified that there was no observable documentation to directly indicate that a search for suspension and debarment was performed on vendors prior to entering into contracts. Cause: Meda has designed internal controls over these areas; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering the contact could result in possibly noncompliance. Questioned Costs: None reported. Context: Two vendors, accounting for $149,320 of expenses were selected for testing out of a total of two vendors. Repeat Finding from Prior Years: No Recommendation: We recommend that management maintain adequate supporting documentation and records to document history and methods of the procedures performed to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-002
Department of Treasury Federal Financial Assistance Listing 21.033, Award 22ERP060843 Community Development Financial Institutions Equitable Recovery Program (CDFI ERP) Suspension & Debarment Significant Deficiency in Internal Control over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: In our testing of procurement, suspension, and debarment, it was identified that there was no observable documentation to directly indicate that a search for suspension and debarment was performed on vendors prior to entering into contracts. Cause: Meda has designed internal controls over these areas; however, the controls were not performed timely. Effect: Failure to document the search for suspension and debarment before entering the contact could result in possibly noncompliance. Questioned Costs: None reported. Context: Two vendors, accounting for $149,320 of expenses were selected for testing out of a total of two vendors. Repeat Finding from Prior Years: No Recommendation: We recommend that management maintain adequate supporting documentation and records to document history and methods of the procedures performed to ensure vendors are not suspended or debarred. Views of Responsible Officials: Management agrees with the finding.