FAC Explorer

Audit 305818

FY End
2022-10-31
Total Expended
$7.84M
Findings
8
Programs
6
Organization: Butte Local Development Corporation (MT)
Year: 2022 Accepted: 2024-05-08
Auditor: Newland and Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
396193 2022-001 Significant Deficiency - L
396194 2022-001 Significant Deficiency - L
396195 2022-001 Significant Deficiency - L
396196 2022-001 Significant Deficiency - L
972635 2022-001 Significant Deficiency - L
972636 2022-001 Significant Deficiency - L
972637 2022-001 Significant Deficiency - L
972638 2022-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
11.307 Title Ix Economic Adjustment Program $3.28M Yes 1
11.307 Cares Act Revolving Loan Fund $2.56M Yes 1
10.767 Intermediary Relending Program $1.34M Yes 1
21.020 Community Development Financial Inst $273,830 - 0
14.228 Community Development Block Grant $198,139 - 0
11.307 Economic Adjustment Assistance $186,466 Yes 1

Contacts

Name Title Type
C7J9WJVJ9JZ9 Kelly Sullivan Auditee
4067234349 Patrick Jay Burt Auditor
No contacts on file

Notes to SEFA

Title: NOTE B. FEDERAL DISBURSEMENTS/EXPENSES, INTERMEDIARY RELENDING PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards is a summary of the activity of the Corporation’s federal award program and has been prepared using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Company has not elected to use the de minimis ten percent indirect cost rate. Actual costs are used in determining allowable expenditures. A reconciliation of federal disbursements/expenses is as follows: Beginning loan balance $797,551 Loans disbursed for the year ended October 31, 2022 534,443 Income earned and expended 9.000 . Total $1,340,894 . The total notes payable to the U S Department of Agriculture as of October 31, 2022 are $1,279,833 Total loans receivable are $1,221,150 at October 31, 2022.
Title: NOTE C. FEDERAL DISBURSEMENTS/EXPENSES, ECONOMIC ADJUSTMENT PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards is a summary of the activity of the Corporation’s federal award program and has been prepared using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Company has not elected to use the de minimis ten percent indirect cost rate. Actual costs are used in determining allowable expenditures. A reconciliation of federal disbursements/expenses is as follows: Balance of loans - October 31, 2022 $1,852,467 Cash Balance - October 31, 2022 1,361,033 Income earned and expended 7,000 Total $3,283,500. Total loans receivable are $1,852,467 at October 31, 2022
Title: NOTE D FEDERAL DISBURSEMENTS/EXPENSES, COMMUNITY DEVELOPMENT BLOCK GRANT/ STATE’S PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards is a summary of the activity of the Corporation’s federal award program and has been prepared using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Company has not elected to use the de minimis ten percent indirect cost rate. Actual costs are used in determining allowable expenditures. A reconciliation of federal disbursements/expenses is as follows: Balance of loans - October 31, 2022 $1,852,467 Cash Balance - October 31, 2022 1,361,033 Income earned and expended 7,000 Total $3,283,500. Total loans receivable are $1,852,467 at October 31, 2022
Title: NOTE E. FEDERAL DISBURSEMENTS/EXPENSES, COMMUNITY DEVELOPMENT FINANCIAL INSTITUIONS FUND Accounting Policies: The accompanying schedule of expenditures of federal awards is a summary of the activity of the Corporation’s federal award program and has been prepared using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Company has not elected to use the de minimis ten percent indirect cost rate. Actual costs are used in determining allowable expenditures. A reconciliation of federal disbursements/expenses is as follows: Beginning loan balance $187,962 Loans disbursed for the year ended October 31, 2022 79,000. Income earned and expended 6,838 Total $273, 830. Total loans receivable are $253,295 at October 31, 2022
Title: OTE F. FEDERAL DISBURSEMENTS/EXPENSES, CARES ACT REVOLVING LOAN FUND Accounting Policies: The accompanying schedule of expenditures of federal awards is a summary of the activity of the Corporation’s federal award program and has been prepared using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Company has not elected to use the de minimis ten percent indirect cost rate. Actual costs are used in determining allowable expenditures. A reconciliation of federal disbursements/expenses is as follows: Beginning loan balance $187,962 Loans disbursed for the year ended October 31, 2022 79,000. Income earned and expended 6,838 Total $273, 830. Total loans receivable are $253,295 at October 31, 2022
Title: NOTE G. SUBRECIPIANTS Accounting Policies: The accompanying schedule of expenditures of federal awards is a summary of the activity of the Corporation’s federal award program and has been prepared using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Company has not elected to use the de minimis ten percent indirect cost rate. Actual costs are used in determining allowable expenditures. No awards were passed through to subrecipients.

Finding Details

Finding 2022-001
A.              FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT Significant Deficiency:Finding #2022-001 – Current financial statements and footnotes were not completed in a timely manner. The financial statements and footnotes were not completed until July, 2023. The Data Collection Report and Federal Reporting package were not filed by the July 31, 2023 due date. Criteria:Uniform Guidance requirements for Federal programs require the submission of the Federal Reporting package including an audit report to the Federal Audit Clearinghouse (FAC) within nine months of the entity’s fiscal year end. The reporting package was due on July 31, 2023.Condition:Current and adjusted financial information was not completed until July, 2023.Effect:To be effective, an accounting system should be continuously updated for all balances and transactions in a timely manner to ensure compliance with Federal Grant Requirements. The fiduciary responsibility of those charged with governance cannot be upheld without current financial information with which to make critical managerial decisions. Cause:Financial reports and footnotes were not completed in a timely manner. Management transitioned from an outside firm preparing financial statements to the preparation of statements and related footnotes by staff members.Recommendation:We recommend that internal control policies and procedures be implemented that require the timely completion of accounting and financial reporting.
Finding 2022-001
A.              FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT Significant Deficiency:Finding #2022-001 – Current financial statements and footnotes were not completed in a timely manner. The financial statements and footnotes were not completed until July, 2023. The Data Collection Report and Federal Reporting package were not filed by the July 31, 2023 due date. Criteria:Uniform Guidance requirements for Federal programs require the submission of the Federal Reporting package including an audit report to the Federal Audit Clearinghouse (FAC) within nine months of the entity’s fiscal year end. The reporting package was due on July 31, 2023.Condition:Current and adjusted financial information was not completed until July, 2023.Effect:To be effective, an accounting system should be continuously updated for all balances and transactions in a timely manner to ensure compliance with Federal Grant Requirements. The fiduciary responsibility of those charged with governance cannot be upheld without current financial information with which to make critical managerial decisions. Cause:Financial reports and footnotes were not completed in a timely manner. Management transitioned from an outside firm preparing financial statements to the preparation of statements and related footnotes by staff members.Recommendation:We recommend that internal control policies and procedures be implemented that require the timely completion of accounting and financial reporting.
Finding 2022-001
A.              FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT Significant Deficiency:Finding #2022-001 – Current financial statements and footnotes were not completed in a timely manner. The financial statements and footnotes were not completed until July, 2023. The Data Collection Report and Federal Reporting package were not filed by the July 31, 2023 due date. Criteria:Uniform Guidance requirements for Federal programs require the submission of the Federal Reporting package including an audit report to the Federal Audit Clearinghouse (FAC) within nine months of the entity’s fiscal year end. The reporting package was due on July 31, 2023.Condition:Current and adjusted financial information was not completed until July, 2023.Effect:To be effective, an accounting system should be continuously updated for all balances and transactions in a timely manner to ensure compliance with Federal Grant Requirements. The fiduciary responsibility of those charged with governance cannot be upheld without current financial information with which to make critical managerial decisions. Cause:Financial reports and footnotes were not completed in a timely manner. Management transitioned from an outside firm preparing financial statements to the preparation of statements and related footnotes by staff members.Recommendation:We recommend that internal control policies and procedures be implemented that require the timely completion of accounting and financial reporting.
Finding 2022-001
A.              FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT Significant Deficiency:Finding #2022-001 – Current financial statements and footnotes were not completed in a timely manner. The financial statements and footnotes were not completed until July, 2023. The Data Collection Report and Federal Reporting package were not filed by the July 31, 2023 due date. Criteria:Uniform Guidance requirements for Federal programs require the submission of the Federal Reporting package including an audit report to the Federal Audit Clearinghouse (FAC) within nine months of the entity’s fiscal year end. The reporting package was due on July 31, 2023.Condition:Current and adjusted financial information was not completed until July, 2023.Effect:To be effective, an accounting system should be continuously updated for all balances and transactions in a timely manner to ensure compliance with Federal Grant Requirements. The fiduciary responsibility of those charged with governance cannot be upheld without current financial information with which to make critical managerial decisions. Cause:Financial reports and footnotes were not completed in a timely manner. Management transitioned from an outside firm preparing financial statements to the preparation of statements and related footnotes by staff members.Recommendation:We recommend that internal control policies and procedures be implemented that require the timely completion of accounting and financial reporting.
Finding 2022-001
A.              FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT Significant Deficiency:Finding #2022-001 – Current financial statements and footnotes were not completed in a timely manner. The financial statements and footnotes were not completed until July, 2023. The Data Collection Report and Federal Reporting package were not filed by the July 31, 2023 due date. Criteria:Uniform Guidance requirements for Federal programs require the submission of the Federal Reporting package including an audit report to the Federal Audit Clearinghouse (FAC) within nine months of the entity’s fiscal year end. The reporting package was due on July 31, 2023.Condition:Current and adjusted financial information was not completed until July, 2023.Effect:To be effective, an accounting system should be continuously updated for all balances and transactions in a timely manner to ensure compliance with Federal Grant Requirements. The fiduciary responsibility of those charged with governance cannot be upheld without current financial information with which to make critical managerial decisions. Cause:Financial reports and footnotes were not completed in a timely manner. Management transitioned from an outside firm preparing financial statements to the preparation of statements and related footnotes by staff members.Recommendation:We recommend that internal control policies and procedures be implemented that require the timely completion of accounting and financial reporting.
Finding 2022-001
A.              FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT Significant Deficiency:Finding #2022-001 – Current financial statements and footnotes were not completed in a timely manner. The financial statements and footnotes were not completed until July, 2023. The Data Collection Report and Federal Reporting package were not filed by the July 31, 2023 due date. Criteria:Uniform Guidance requirements for Federal programs require the submission of the Federal Reporting package including an audit report to the Federal Audit Clearinghouse (FAC) within nine months of the entity’s fiscal year end. The reporting package was due on July 31, 2023.Condition:Current and adjusted financial information was not completed until July, 2023.Effect:To be effective, an accounting system should be continuously updated for all balances and transactions in a timely manner to ensure compliance with Federal Grant Requirements. The fiduciary responsibility of those charged with governance cannot be upheld without current financial information with which to make critical managerial decisions. Cause:Financial reports and footnotes were not completed in a timely manner. Management transitioned from an outside firm preparing financial statements to the preparation of statements and related footnotes by staff members.Recommendation:We recommend that internal control policies and procedures be implemented that require the timely completion of accounting and financial reporting.
Finding 2022-001
A.              FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT Significant Deficiency:Finding #2022-001 – Current financial statements and footnotes were not completed in a timely manner. The financial statements and footnotes were not completed until July, 2023. The Data Collection Report and Federal Reporting package were not filed by the July 31, 2023 due date. Criteria:Uniform Guidance requirements for Federal programs require the submission of the Federal Reporting package including an audit report to the Federal Audit Clearinghouse (FAC) within nine months of the entity’s fiscal year end. The reporting package was due on July 31, 2023.Condition:Current and adjusted financial information was not completed until July, 2023.Effect:To be effective, an accounting system should be continuously updated for all balances and transactions in a timely manner to ensure compliance with Federal Grant Requirements. The fiduciary responsibility of those charged with governance cannot be upheld without current financial information with which to make critical managerial decisions. Cause:Financial reports and footnotes were not completed in a timely manner. Management transitioned from an outside firm preparing financial statements to the preparation of statements and related footnotes by staff members.Recommendation:We recommend that internal control policies and procedures be implemented that require the timely completion of accounting and financial reporting.
Finding 2022-001
A.              FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT Significant Deficiency:Finding #2022-001 – Current financial statements and footnotes were not completed in a timely manner. The financial statements and footnotes were not completed until July, 2023. The Data Collection Report and Federal Reporting package were not filed by the July 31, 2023 due date. Criteria:Uniform Guidance requirements for Federal programs require the submission of the Federal Reporting package including an audit report to the Federal Audit Clearinghouse (FAC) within nine months of the entity’s fiscal year end. The reporting package was due on July 31, 2023.Condition:Current and adjusted financial information was not completed until July, 2023.Effect:To be effective, an accounting system should be continuously updated for all balances and transactions in a timely manner to ensure compliance with Federal Grant Requirements. The fiduciary responsibility of those charged with governance cannot be upheld without current financial information with which to make critical managerial decisions. Cause:Financial reports and footnotes were not completed in a timely manner. Management transitioned from an outside firm preparing financial statements to the preparation of statements and related footnotes by staff members.Recommendation:We recommend that internal control policies and procedures be implemented that require the timely completion of accounting and financial reporting.