FAC Explorer

Audit 308252

FY End
2023-12-31
Total Expended
$3.28M
Findings
2
Programs
1
Organization: Port Authority of the City of St. Paul (MN)
Year: 2023 Accepted: 2024-06-06
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
400138 2023-001 Material Weakness - I
976580 2023-001 Material Weakness - I

Programs

ALN Program Spent Major Findings
81.041 State Energy Program $3.28M Yes 1

Contacts

Name Title Type
JQC2HTBJYGL6 Bruce Kessel Auditee
6514026213 Christopher Knopik 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: The Port Authority of the City of Saint Paul does not charge indirect costs to its federal programs and therefore does not utilize the de minimus indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Port Authority of the City of Saint Paul (the Port Authority) under programs of the federal government for the year ended December 31, 2023. The information presented in this schedule is presented in accordance with the requirements 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 Port Authority of the City of Saint Paul, it is not intended to and does not present the financial position, change in net position, or cash flows of the Port Authority of the City of Saint Paul.
Title: STATE ENERGY PROGRAM 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: The Port Authority of the City of Saint Paul does not charge indirect costs to its federal programs and therefore does not utilize the de minimus indirect cost rate allowed under the Uniform Guidance. The amount reported on the financial statements for the ARRA-State Energy Program (81.041) for the Port Authority is the administrative and collection costs. Below is a summary of the loan activity during fiscal year 2023. State Energy Program: Loans Receivable Beginning: $12,128,716 New Loans Issued: $3,275,948 Loan Repayments: $(2,140,981) Loans Receivable Ending: $13,263,683

Finding Details

Finding 2023-001
Federal agency: U.S. Department of Energy Federal program title: ARRA – State Energy Program Assistance Listing Number: 81.041 Pass-Through Agency: Minnesota Department of Commerce Pass-Through Number(s): CFMS B38838 Award Period: N/A – Revolving Loan Type of Finding: • Material Weakness in Internal Control over Compliance Criteria or specific requirement: Item 5c. of Exhibit A of the State of Minnesota Intergovernmental Unit Agreement with the Port Authority states that in the performance of its duties, the Port shall not make any loan to or contract with any party that is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs under Executive Order 12549, “Debarment and Suspension.” Condition: During testing of the suspension and debarment requirements with regards to new loans entered into during the year, it was noted that the formal documentation of proper suspension and debarment procedures was not retained in all cases. Questioned costs: None. Context: Of the five loans that were selected for testing, we noted two which did not contain formal documentation for suspension and debarment procedures. Cause: The Port Authority experienced turnover among personnel that performed and retained documentation of the suspension and debarment checks. Effect: A lack of proper controls related to suspension and debarment could potentially result in issuing a loan to an entity that is debarred or suspended from participation in federal assistance programs and therefore could result in questioned costs incurred. Repeat finding: This is not a repeat finding. Recommendation: We recommend that the Port re-implement its previous controls of using a tracking checklist and retaining timestamped screenshots of SAM.gov prior to funding any State Energy Program loan. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-001
Federal agency: U.S. Department of Energy Federal program title: ARRA – State Energy Program Assistance Listing Number: 81.041 Pass-Through Agency: Minnesota Department of Commerce Pass-Through Number(s): CFMS B38838 Award Period: N/A – Revolving Loan Type of Finding: • Material Weakness in Internal Control over Compliance Criteria or specific requirement: Item 5c. of Exhibit A of the State of Minnesota Intergovernmental Unit Agreement with the Port Authority states that in the performance of its duties, the Port shall not make any loan to or contract with any party that is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs under Executive Order 12549, “Debarment and Suspension.” Condition: During testing of the suspension and debarment requirements with regards to new loans entered into during the year, it was noted that the formal documentation of proper suspension and debarment procedures was not retained in all cases. Questioned costs: None. Context: Of the five loans that were selected for testing, we noted two which did not contain formal documentation for suspension and debarment procedures. Cause: The Port Authority experienced turnover among personnel that performed and retained documentation of the suspension and debarment checks. Effect: A lack of proper controls related to suspension and debarment could potentially result in issuing a loan to an entity that is debarred or suspended from participation in federal assistance programs and therefore could result in questioned costs incurred. Repeat finding: This is not a repeat finding. Recommendation: We recommend that the Port re-implement its previous controls of using a tracking checklist and retaining timestamped screenshots of SAM.gov prior to funding any State Energy Program loan. Views of responsible officials: There is no disagreement with the audit finding.