Audit 305539

FY End
2022-06-30
Total Expended
$5.78M
Findings
4
Programs
1
Year: 2022 Accepted: 2024-05-06

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
395920 2022-002 Material Weakness Yes B
395921 2022-003 - - N
972362 2022-002 Material Weakness Yes B
972363 2022-003 - - N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $5.78M Yes 2

Contacts

Name Title Type
JZ1GNZLT71B3 Peter Clark Auditee
3077513163 Jason Lund Auditor
No contacts on file

Notes to SEFA

Title: 1. BASIS FOR PRESENTATION Accounting Policies: Expenditures reported on the schedule are reported on the same basis of accounting used in preparation of the financial statements from which the information was derived as described in Note 1 to the District's basic financial statements. 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: The Board does not utilize the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal awards activity of under programs of the federal government for the year ended June 30, 2022. 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 the Audit Requirements for Federal Awards (Uniform Guidance). All federal financial awards received directly from federal agencies as well as federal financial awards passed through from other governmental agencies are included in the schedule. Because the schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Board.
Title: 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the schedule are reported on the same basis of accounting used in preparation of the financial statements from which the information was derived as described in Note 1 to the District's basic financial statements. 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: The Board does not utilize the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the schedule are reported on the same basis of accounting used in preparation of the financial statements from which the information was derived as described in Note 1 to the District's basic financial statements. 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: 3. INDIRECT COST RATES Accounting Policies: Expenditures reported on the schedule are reported on the same basis of accounting used in preparation of the financial statements from which the information was derived as described in Note 1 to the District's basic financial statements. 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: The Board does not utilize the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Board does not utilize the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: 4. SUBRECIPEINTS Accounting Policies: Expenditures reported on the schedule are reported on the same basis of accounting used in preparation of the financial statements from which the information was derived as described in Note 1 to the District's basic financial statements. 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: The Board does not utilize the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. There were no awards to subrecipients.

Finding Details

2022-002 (repeat of 2021-002) Inadequate Supporting Documentation Material Weakness Criteria Requests for reimbursement must include invoices to verify amounts requested, and review/approval must be documented. Condition The Board did not provide fully executed supporting documentation for 6 transactions, additionally the detail provided to support what had been purchased did not contain the expected detail for a thorough review. We recognize that there are compensating controls given the oversight exerciesed by the USDA, however, based on the supporting documentation we received, we were unable to verify that such oversight was operating as intended. Cause The Board is staffed by 5 volunteers and has no dedicated office space. It is challenging for the volunteers to maintain complete documentation under these conditions. Effect As a result, reimbursement requests may be incomplete, therefore, the Board may not be reimbursed for all program costs. Recommendation The Board should retain all documentation pertaining to reimbursements.
2022-003 Loan Reserve Requirement Non-Compliance Criteria The Board is required to set aside an amount equal to one-tenth of one yearly payment until one average annual loan installment is reached. Condition & Cause As a result of significant financial difficulties, the Board has been unable to meet the requirement to fund the reserve account. Effect As a result, the Board is not in compliance with the reserve requirement. Recommendation We recongize that is may not be possible for the Board to meet this requirement.
2022-002 (repeat of 2021-002) Inadequate Supporting Documentation Material Weakness Criteria Requests for reimbursement must include invoices to verify amounts requested, and review/approval must be documented. Condition The Board did not provide fully executed supporting documentation for 6 transactions, additionally the detail provided to support what had been purchased did not contain the expected detail for a thorough review. We recognize that there are compensating controls given the oversight exerciesed by the USDA, however, based on the supporting documentation we received, we were unable to verify that such oversight was operating as intended. Cause The Board is staffed by 5 volunteers and has no dedicated office space. It is challenging for the volunteers to maintain complete documentation under these conditions. Effect As a result, reimbursement requests may be incomplete, therefore, the Board may not be reimbursed for all program costs. Recommendation The Board should retain all documentation pertaining to reimbursements.
2022-003 Loan Reserve Requirement Non-Compliance Criteria The Board is required to set aside an amount equal to one-tenth of one yearly payment until one average annual loan installment is reached. Condition & Cause As a result of significant financial difficulties, the Board has been unable to meet the requirement to fund the reserve account. Effect As a result, the Board is not in compliance with the reserve requirement. Recommendation We recongize that is may not be possible for the Board to meet this requirement.