Audit 30692

FY End
2022-12-31
Total Expended
$6.66M
Findings
12
Programs
2
Organization: Cvfiber (VT)
Year: 2022 Accepted: 2023-08-29

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
36379 2022-002 Material Weakness - L
36380 2022-003 Material Weakness - H
36381 2022-004 Significant Deficiency - A
36382 2022-002 Material Weakness - L
36383 2022-003 Material Weakness - H
36384 2022-004 Significant Deficiency - A
612821 2022-002 Material Weakness - L
612822 2022-003 Material Weakness - H
612823 2022-004 Significant Deficiency - A
612824 2022-002 Material Weakness - L
612825 2022-003 Material Weakness - H
612826 2022-004 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $653,578 Yes 3
21.019 Coronavirus Relief Fund $4,516 - 0

Contacts

Name Title Type
FBMQW6K71J91 Jennille Smith Auditee
8023168797 Callie Chase Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note 1. Basis of PresentationThe Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of CVFiber (the District), under programs of the federal government for the year ended December 31, 2022. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) Uniform Guidance. Because the schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District.Note 2. Basis of AccountingExpenditures reported on the Schedule are presented on the same basis of accounting as the Districts financial statements. The District uses the accrual basis of accounting. Expenditures represent only the federally funded portions of the program. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.Note 3. Program CostsThe amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs could be more than shown. Such expenditures are recognized following, as applicable, the cost principles in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements, wherein certain types of expenditures are not allowable or are limited to reimbursement.Note 4. Major ProgramsIn accordance with OMB Uniform Guidance, major programs are determined using a risk-based approach. Programs in the accompanying Schedule are determined by the independent auditor to be major programs. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

2022-002- Accuracy of Reporting Federal Agency: U.S. Department of Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Program Year: 2022 Assistance Listing Number: 21.027 Compliance: Reporting Finding Type: Material weakness in internal controls over compliance. Criteria: Management is responsible for submitting timely, accurate reporting based on the terms of the grant agreement. Condition: During compliance testing, it was noted that required reporting submitted to the pass-through entity were materially misstated. Context: It was noted that reporting submitted to the State in June and December 2022 did not match the expenditures included in the District?s general ledger. Additionally, the reporting included inaccurate invoices. Cause of condition: Changes were made in QuickBooks after the reports were submitted to the State. Effect of Condition: As a result of this condition, the District?s required reporting was misstated. Recommendation: It is recommended that month and year-end reconciliations be performed in a timely manner in order to ensure all expenditures are being properly reflected in the reporting that is submitted.
2022-003- Accuracy of Reporting Expenditures Federal Agency: U.S. Department of Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Program Year: 2022 Assistance Listing Number: 21.027 Compliance: Period of Performance Finding Type: Material weakness in internal controls over compliance Criteria: Management is responsible for accurately keeping track of expenditures charged to each grant to ensure grant funds are spent in the allowable period. Condition: During compliance testing, it was noted that expenditures were dated outside of the award period. Context: 6 transactions were charged to a grant after the grant award period ended. Cause of condition: The transactions were all obligated before the end of the grant award period, however, they were not spent. The District was attempting to comply with the previously communicated reports that they had submitted to the State that showed specific contract transactions for specific grants. After a phone call with the pass-through entity, the District was also under the impression that they wanted them to spend the rest of the grant down as quickly as they could and were lenient on the timeframe. The District had enough expenses under the same program that they were able to exchange expenses with another grant in order to be compliant with the grant period of performance. Effect of Condition: As a result of this condition, the District had to update reporting with appropriate expenditures after reports were submitted to the State. Recommendation: It is recommended that the District keeps track of the grant award period for each grant award and compares records monthly to ensure expenditures are within the period of performance.
2022-004- Payroll Records Federal Agency: U.S. Department of Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Program Year: 2022 Assistance Listing Number: 21.027 Compliance: Activities Allowed and Unallowed and Allowable Costs/Cost Principles Finding Type: Significant deficiency in internal controls over compliance and noncompliance Criteria: Management is responsible for maintaining adequate records for salaries charged to federal awards that accurately reflect the work performed. These records must also support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award or on a Federal award and non-Federal award. Condition: During compliance testing, it was noted that no adequate time and effort documentation was maintained for the employee being charged to the Federal award. Context: All 18 pay periods that were charged to the grants lacked adequate time and effort documentation. Cause of condition: The District was unaware of the requirement that salaries allocated to federal funds must have records that accurately reflect work performed. Effect of Condition: As a result of this condition, the District?s expenditures charged to the federal grant for salaries lacked adequate compliance documentation. Recommendation: It is recommended that the District maintain adequate records for salaries charged to federal awards, such as signed timesheets or semi-annual certificates if all salaries are charged to one grant.
2022-002- Accuracy of Reporting Federal Agency: U.S. Department of Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Program Year: 2022 Assistance Listing Number: 21.027 Compliance: Reporting Finding Type: Material weakness in internal controls over compliance. Criteria: Management is responsible for submitting timely, accurate reporting based on the terms of the grant agreement. Condition: During compliance testing, it was noted that required reporting submitted to the pass-through entity were materially misstated. Context: It was noted that reporting submitted to the State in June and December 2022 did not match the expenditures included in the District?s general ledger. Additionally, the reporting included inaccurate invoices. Cause of condition: Changes were made in QuickBooks after the reports were submitted to the State. Effect of Condition: As a result of this condition, the District?s required reporting was misstated. Recommendation: It is recommended that month and year-end reconciliations be performed in a timely manner in order to ensure all expenditures are being properly reflected in the reporting that is submitted.
2022-003- Accuracy of Reporting Expenditures Federal Agency: U.S. Department of Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Program Year: 2022 Assistance Listing Number: 21.027 Compliance: Period of Performance Finding Type: Material weakness in internal controls over compliance Criteria: Management is responsible for accurately keeping track of expenditures charged to each grant to ensure grant funds are spent in the allowable period. Condition: During compliance testing, it was noted that expenditures were dated outside of the award period. Context: 6 transactions were charged to a grant after the grant award period ended. Cause of condition: The transactions were all obligated before the end of the grant award period, however, they were not spent. The District was attempting to comply with the previously communicated reports that they had submitted to the State that showed specific contract transactions for specific grants. After a phone call with the pass-through entity, the District was also under the impression that they wanted them to spend the rest of the grant down as quickly as they could and were lenient on the timeframe. The District had enough expenses under the same program that they were able to exchange expenses with another grant in order to be compliant with the grant period of performance. Effect of Condition: As a result of this condition, the District had to update reporting with appropriate expenditures after reports were submitted to the State. Recommendation: It is recommended that the District keeps track of the grant award period for each grant award and compares records monthly to ensure expenditures are within the period of performance.
2022-004- Payroll Records Federal Agency: U.S. Department of Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Program Year: 2022 Assistance Listing Number: 21.027 Compliance: Activities Allowed and Unallowed and Allowable Costs/Cost Principles Finding Type: Significant deficiency in internal controls over compliance and noncompliance Criteria: Management is responsible for maintaining adequate records for salaries charged to federal awards that accurately reflect the work performed. These records must also support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award or on a Federal award and non-Federal award. Condition: During compliance testing, it was noted that no adequate time and effort documentation was maintained for the employee being charged to the Federal award. Context: All 18 pay periods that were charged to the grants lacked adequate time and effort documentation. Cause of condition: The District was unaware of the requirement that salaries allocated to federal funds must have records that accurately reflect work performed. Effect of Condition: As a result of this condition, the District?s expenditures charged to the federal grant for salaries lacked adequate compliance documentation. Recommendation: It is recommended that the District maintain adequate records for salaries charged to federal awards, such as signed timesheets or semi-annual certificates if all salaries are charged to one grant.
2022-002- Accuracy of Reporting Federal Agency: U.S. Department of Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Program Year: 2022 Assistance Listing Number: 21.027 Compliance: Reporting Finding Type: Material weakness in internal controls over compliance. Criteria: Management is responsible for submitting timely, accurate reporting based on the terms of the grant agreement. Condition: During compliance testing, it was noted that required reporting submitted to the pass-through entity were materially misstated. Context: It was noted that reporting submitted to the State in June and December 2022 did not match the expenditures included in the District?s general ledger. Additionally, the reporting included inaccurate invoices. Cause of condition: Changes were made in QuickBooks after the reports were submitted to the State. Effect of Condition: As a result of this condition, the District?s required reporting was misstated. Recommendation: It is recommended that month and year-end reconciliations be performed in a timely manner in order to ensure all expenditures are being properly reflected in the reporting that is submitted.
2022-003- Accuracy of Reporting Expenditures Federal Agency: U.S. Department of Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Program Year: 2022 Assistance Listing Number: 21.027 Compliance: Period of Performance Finding Type: Material weakness in internal controls over compliance Criteria: Management is responsible for accurately keeping track of expenditures charged to each grant to ensure grant funds are spent in the allowable period. Condition: During compliance testing, it was noted that expenditures were dated outside of the award period. Context: 6 transactions were charged to a grant after the grant award period ended. Cause of condition: The transactions were all obligated before the end of the grant award period, however, they were not spent. The District was attempting to comply with the previously communicated reports that they had submitted to the State that showed specific contract transactions for specific grants. After a phone call with the pass-through entity, the District was also under the impression that they wanted them to spend the rest of the grant down as quickly as they could and were lenient on the timeframe. The District had enough expenses under the same program that they were able to exchange expenses with another grant in order to be compliant with the grant period of performance. Effect of Condition: As a result of this condition, the District had to update reporting with appropriate expenditures after reports were submitted to the State. Recommendation: It is recommended that the District keeps track of the grant award period for each grant award and compares records monthly to ensure expenditures are within the period of performance.
2022-004- Payroll Records Federal Agency: U.S. Department of Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Program Year: 2022 Assistance Listing Number: 21.027 Compliance: Activities Allowed and Unallowed and Allowable Costs/Cost Principles Finding Type: Significant deficiency in internal controls over compliance and noncompliance Criteria: Management is responsible for maintaining adequate records for salaries charged to federal awards that accurately reflect the work performed. These records must also support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award or on a Federal award and non-Federal award. Condition: During compliance testing, it was noted that no adequate time and effort documentation was maintained for the employee being charged to the Federal award. Context: All 18 pay periods that were charged to the grants lacked adequate time and effort documentation. Cause of condition: The District was unaware of the requirement that salaries allocated to federal funds must have records that accurately reflect work performed. Effect of Condition: As a result of this condition, the District?s expenditures charged to the federal grant for salaries lacked adequate compliance documentation. Recommendation: It is recommended that the District maintain adequate records for salaries charged to federal awards, such as signed timesheets or semi-annual certificates if all salaries are charged to one grant.
2022-002- Accuracy of Reporting Federal Agency: U.S. Department of Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Program Year: 2022 Assistance Listing Number: 21.027 Compliance: Reporting Finding Type: Material weakness in internal controls over compliance. Criteria: Management is responsible for submitting timely, accurate reporting based on the terms of the grant agreement. Condition: During compliance testing, it was noted that required reporting submitted to the pass-through entity were materially misstated. Context: It was noted that reporting submitted to the State in June and December 2022 did not match the expenditures included in the District?s general ledger. Additionally, the reporting included inaccurate invoices. Cause of condition: Changes were made in QuickBooks after the reports were submitted to the State. Effect of Condition: As a result of this condition, the District?s required reporting was misstated. Recommendation: It is recommended that month and year-end reconciliations be performed in a timely manner in order to ensure all expenditures are being properly reflected in the reporting that is submitted.
2022-003- Accuracy of Reporting Expenditures Federal Agency: U.S. Department of Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Program Year: 2022 Assistance Listing Number: 21.027 Compliance: Period of Performance Finding Type: Material weakness in internal controls over compliance Criteria: Management is responsible for accurately keeping track of expenditures charged to each grant to ensure grant funds are spent in the allowable period. Condition: During compliance testing, it was noted that expenditures were dated outside of the award period. Context: 6 transactions were charged to a grant after the grant award period ended. Cause of condition: The transactions were all obligated before the end of the grant award period, however, they were not spent. The District was attempting to comply with the previously communicated reports that they had submitted to the State that showed specific contract transactions for specific grants. After a phone call with the pass-through entity, the District was also under the impression that they wanted them to spend the rest of the grant down as quickly as they could and were lenient on the timeframe. The District had enough expenses under the same program that they were able to exchange expenses with another grant in order to be compliant with the grant period of performance. Effect of Condition: As a result of this condition, the District had to update reporting with appropriate expenditures after reports were submitted to the State. Recommendation: It is recommended that the District keeps track of the grant award period for each grant award and compares records monthly to ensure expenditures are within the period of performance.
2022-004- Payroll Records Federal Agency: U.S. Department of Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Program Year: 2022 Assistance Listing Number: 21.027 Compliance: Activities Allowed and Unallowed and Allowable Costs/Cost Principles Finding Type: Significant deficiency in internal controls over compliance and noncompliance Criteria: Management is responsible for maintaining adequate records for salaries charged to federal awards that accurately reflect the work performed. These records must also support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award or on a Federal award and non-Federal award. Condition: During compliance testing, it was noted that no adequate time and effort documentation was maintained for the employee being charged to the Federal award. Context: All 18 pay periods that were charged to the grants lacked adequate time and effort documentation. Cause of condition: The District was unaware of the requirement that salaries allocated to federal funds must have records that accurately reflect work performed. Effect of Condition: As a result of this condition, the District?s expenditures charged to the federal grant for salaries lacked adequate compliance documentation. Recommendation: It is recommended that the District maintain adequate records for salaries charged to federal awards, such as signed timesheets or semi-annual certificates if all salaries are charged to one grant.