FAC Explorer

Audit 306108

FY End
2023-09-30
Total Expended
$4.86M
Findings
2
Programs
5
Organization: Jackson County Utility Authority (MS)
Year: 2023 Accepted: 2024-05-13
Auditor: Alexander Van Loon Sloan Levens & Favre PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
396506 2023-001 Significant Deficiency - P
972948 2023-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.50M Yes 1
66.468 Capitalization Grants for Drinking Water State Revolving Funds $1.68M - 0
66.458 Capitalization Grants for Clean Water State Revolving Funds $613,894 - 0
97.039 Hazard Mitigation Grant $57,780 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $12,880 - 0

Contacts

Name Title Type
E9FHMXXD5JY6 Linda Green Auditee
2287620119 Kim Marmalich Auditor
No contacts on file

Notes to SEFA

Title: Note 3 - Basis of Presentation Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. The cost principles are applied based on the period of expenditures. De Minimis Rate Used: N Rate Explanation: The Jackson County Utility Authority has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Jackson County Utility Authority (Authority) under programs of the federal government for the year ended September 30, 2023 and is presented on the accrual basis of accounting. 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 the Authority, it is not intended to and does not present the finanical position, changes in net position, or cash flows of Jackson County Utility Authority.
Title: Note 4 - Reconciliation of Expenditures to Financial Statements Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. The cost principles are applied based on the period of expenditures. De Minimis Rate Used: N Rate Explanation: The Jackson County Utility Authority has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The following reconciles the total expenditures of federal awards to amounts included in the statement of net position and statement of revenues, expenses, and changes in net position for the year ended September 30, 2023:

Finding Details

Finding 2023-001
Condition Management did not report the total federal awards expended during the year under audit. Subsequent to issuance of the September 30, 2023 financial statements, management was made aware by the awarding agency that funds the Authority received were federal awards and had federal compliance requirements. Criteria Part 200, Uniform Guidance section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and terms and conditions of the federal awards. 45 CFR Part 75 Subpart F requires that a non-federal entity that expends $750,000 or more during the entity's fiscal year in federal awards must have a single audit and that the entity must prepare a schedule of expenditures of federal awards for the period covered by the entity's financial statements which must include the total federal awards expended. Cause The member of management responsible for reporting federal awards was unaware that funds received were a sub-award of federal award from a non-federal entity and, therefore, certified a submission to the federal audit clearinghouse that was not complete and accurate. Effect Potential material noncompliance with federal compliance requirements. Questioned Costs There are no questioned costs associated with finding. Context The award was issued in the form of one check which the Authoirty immediately remitted to a federal project partner for the Authority's share of the project local match. Historically, the Authority has had adequate internal controls over compliance of federal awards. Had the member of management responsible for reporting federal awards been aware of the federal award status of the funds they likely would have reported a complete and accruate schedule of expenditures of federal awards. Repeat Finding This is not a repeat finding. Recommendation The Authority should establish documented controls and a review process for funds received that includes a signed agreement detailing the Authority's responsibilities in relation to the funding and identifying the individuals responsible for meeting responsibility requirements. View of Responsible Officials and Planned Corrective Actions The Authority concurs with the finding and has provided a response in the Corrective Action Plan.
Finding 2023-001
Condition Management did not report the total federal awards expended during the year under audit. Subsequent to issuance of the September 30, 2023 financial statements, management was made aware by the awarding agency that funds the Authority received were federal awards and had federal compliance requirements. Criteria Part 200, Uniform Guidance section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and terms and conditions of the federal awards. 45 CFR Part 75 Subpart F requires that a non-federal entity that expends $750,000 or more during the entity's fiscal year in federal awards must have a single audit and that the entity must prepare a schedule of expenditures of federal awards for the period covered by the entity's financial statements which must include the total federal awards expended. Cause The member of management responsible for reporting federal awards was unaware that funds received were a sub-award of federal award from a non-federal entity and, therefore, certified a submission to the federal audit clearinghouse that was not complete and accurate. Effect Potential material noncompliance with federal compliance requirements. Questioned Costs There are no questioned costs associated with finding. Context The award was issued in the form of one check which the Authoirty immediately remitted to a federal project partner for the Authority's share of the project local match. Historically, the Authority has had adequate internal controls over compliance of federal awards. Had the member of management responsible for reporting federal awards been aware of the federal award status of the funds they likely would have reported a complete and accruate schedule of expenditures of federal awards. Repeat Finding This is not a repeat finding. Recommendation The Authority should establish documented controls and a review process for funds received that includes a signed agreement detailing the Authority's responsibilities in relation to the funding and identifying the individuals responsible for meeting responsibility requirements. View of Responsible Officials and Planned Corrective Actions The Authority concurs with the finding and has provided a response in the Corrective Action Plan.