Audit 305635

FY End

2023-12-31

Total Expended

$913,436

Findings

4

Programs

1

Organization: Jefferson County Local Development Corporation (NY)

Year: 2023 Accepted: 2024-05-07

Auditor: Bowers & Company CPAS PLLC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
396029	2023-001	Significant Deficiency	-	P
396030	2023-002	-	-	P
972471	2023-001	Significant Deficiency	-	P
972472	2023-002	-	-	P

ALN	Program	Spent	Major	Findings
21.027	Coronavirus State and Local Fiscal Recovery Funds	$139,529	Yes	0

Contacts

Name	Title	Type
G7KLWMN6GB33	Marshall Weir	Auditee
3157825865	Laurie Podvin, CPA	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. 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: Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source of the data presented. The LDC has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Jefferson County Local Development Corporation under programs of the federal government for the year ended December 31, 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 Jefferson County Local Development Corporation it is not intended to and does not present the financial position, changes in net assets, or cash flows of Jefferson County Local Development Corporation.

Finding Details

Finding 2023-001

Condition: The LDC did not identify a subrecipient of the Coronavirus State and Local Fiscal Recovery Funds and applicable requirements at the time a subaward was made to another Organization. Criteria: Internal controls should be in place to ensure management identifies any subrecipients of Federal grants and has processes in place to notify and monitor the subrecipient. Cause: There were no procedures in place to determine if any grants were subawards to subrecipients. Effect: Because the terms and conditions of the subaward were not identified, the LDC may not have been able to comply with Federal statutes, regulations, and the terms and conditions of the Federal award. Recommendation: Procedures should be implemented to evaluate grant activity and contracts to make a determination of subrecipients or beneficiaries on all grant awards.

Finding 2023-002

Condition: The LDC did not identify the subaward of the Coronavirus State and Local Fiscal Recovery Funds and applicable requirements at the time the subaward was made. Because of the failure to identify the subaward, the LDC was not able to comply with monitoring subrecipient activities to provide reasonable assurance that the subrecipient administered the subaward in compliance with the terms and conditions of the subaward in accordance with the Uniform Guidance. Criteria: Federal administration requires a pass-through entity (PTE) to identify the federal award and requirements to a subrecipient and to then monitor subrecipient activities. Cause: Since the LDC did not identify the subaward at time of contract, they did not complete subrecipient compliance requirements as required under the Uniform Guidance throughout the grant period. Effect: The LDC did not notify the subaward as identified in finding 2023-001, and therefore, was not following subrecipient monitoring requirements under the Uniform Guidance and the costs could potentially be disallowed. Recommendation: We recommend that any subrecipients are identified at time contracts are agreed upon and that the LDC ensures proper subrecipient notification and monitoring throughout the grant period for compliance with the Uniform Guidance.

Finding 2023-001

Condition: The LDC did not identify a subrecipient of the Coronavirus State and Local Fiscal Recovery Funds and applicable requirements at the time a subaward was made to another Organization. Criteria: Internal controls should be in place to ensure management identifies any subrecipients of Federal grants and has processes in place to notify and monitor the subrecipient. Cause: There were no procedures in place to determine if any grants were subawards to subrecipients. Effect: Because the terms and conditions of the subaward were not identified, the LDC may not have been able to comply with Federal statutes, regulations, and the terms and conditions of the Federal award. Recommendation: Procedures should be implemented to evaluate grant activity and contracts to make a determination of subrecipients or beneficiaries on all grant awards.

Finding 2023-002

Condition: The LDC did not identify the subaward of the Coronavirus State and Local Fiscal Recovery Funds and applicable requirements at the time the subaward was made. Because of the failure to identify the subaward, the LDC was not able to comply with monitoring subrecipient activities to provide reasonable assurance that the subrecipient administered the subaward in compliance with the terms and conditions of the subaward in accordance with the Uniform Guidance. Criteria: Federal administration requires a pass-through entity (PTE) to identify the federal award and requirements to a subrecipient and to then monitor subrecipient activities. Cause: Since the LDC did not identify the subaward at time of contract, they did not complete subrecipient compliance requirements as required under the Uniform Guidance throughout the grant period. Effect: The LDC did not notify the subaward as identified in finding 2023-001, and therefore, was not following subrecipient monitoring requirements under the Uniform Guidance and the costs could potentially be disallowed. Recommendation: We recommend that any subrecipients are identified at time contracts are agreed upon and that the LDC ensures proper subrecipient notification and monitoring throughout the grant period for compliance with the Uniform Guidance.