Audit 30858

FY End

2022-12-31

Total Expended

$752,307

Findings

2

Programs

1

Organization: Mountain Iron Economic Development Authority (MN)

Year: 2022 Accepted: 2023-06-22

Auditor: Walker Giroux & Hahne LLC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
34071	2022-001	Significant Deficiency	-	P
610513	2022-001	Significant Deficiency	-	P

ALN	Program	Spent	Major	Findings
21.027	Coronavirus State and Local Fiscal Recovery Funds	$752,307	Yes	1

Contacts

Name	Title	Type
GNYWYDRM49A3	Craig J. Wainio	Auditee
2187487570	Thomas B. Kelly	Auditor
No contacts on file

Notes to SEFA

Title: NOTE C - PASS-THROUGH ENTITIES Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Mountain Iron EDA, 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 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 Mountain Iron EDA, it is not intended to and does not present the financial position, changes in net position, or cash flows of Mountain Iron EDA. NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the modified 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. The Mountain Iron EDA has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. There were no pass-through entities.

Finding Details

Finding 2022-001

Section II ? Financial Statement Findings 2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the EDA?s business office, the segregation of accounting functions necessary to ensure adequate internal accounting control is not possible. Effect Because of the weakness in segregation of duties, the EDA has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Recommendations The EDA should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The Executive Director will continue to monitor all transactions and the EDA?s administration will structure the duties of office personnel to help ensure as much segregation of duties as possible within the EDA?s staffing limitations and funding constraints. Section III ? Federal Award Findings and Questioned Costs DEPARTMENT OF THE TREASURY Coronavirus State and Local Fiscal Recovery Funds ? Assistance Listing No. 21.027? Grant Period ? Year ended December 31, 2022. The significant deficiency of lack of segregation of duties, as discussed in Section II, finding 2022-001, also applies to this grant. Finding: 2022-001 Name of Contact Person: Craig Wainio, Executive Director Corrective Action: The Executive Director will attempt to monitor transactions and structure the duties of office personnel to help ensure as much segregation of duties as possible within the EDA?s staffing limitations and funding constraints. Proposed Completion Date: The Executive Director has been monitoring transactions and reviewing the duties of office personnel on an ongoing basis.

Finding 2022-001

Section II ? Financial Statement Findings 2022-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the EDA?s business office, the segregation of accounting functions necessary to ensure adequate internal accounting control is not possible. Effect Because of the weakness in segregation of duties, the EDA has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Recommendations The EDA should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The Executive Director will continue to monitor all transactions and the EDA?s administration will structure the duties of office personnel to help ensure as much segregation of duties as possible within the EDA?s staffing limitations and funding constraints. Section III ? Federal Award Findings and Questioned Costs DEPARTMENT OF THE TREASURY Coronavirus State and Local Fiscal Recovery Funds ? Assistance Listing No. 21.027? Grant Period ? Year ended December 31, 2022. The significant deficiency of lack of segregation of duties, as discussed in Section II, finding 2022-001, also applies to this grant. Finding: 2022-001 Name of Contact Person: Craig Wainio, Executive Director Corrective Action: The Executive Director will attempt to monitor transactions and structure the duties of office personnel to help ensure as much segregation of duties as possible within the EDA?s staffing limitations and funding constraints. Proposed Completion Date: The Executive Director has been monitoring transactions and reviewing the duties of office personnel on an ongoing basis.