FAC Explorer

Audit 308743

FY End
2023-12-31
Total Expended
$2.39M
Findings
4
Programs
1
Organization: East Central Vermont Telecommunications District (VT)
Year: 2023 Accepted: 2024-06-13
Auditor: Nathan Wechsler & Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
400685 2023-001 Material Weakness - P
400686 2023-002 Material Weakness - I
977127 2023-001 Material Weakness - P
977128 2023-002 Material Weakness - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.39M Yes 2

Contacts

Name Title Type
MC43CMMF81W1 Daniel Childs Auditee
8022763808 Ashley Aniskovich Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: The Schedule of Expenditures of Federal Awards (“the Schedule”) includes the federal grant activity of East Central Vermont Telecommunications District (“the District”), under programs of the federal government for the year ended December 31, 2023. 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.. Expenditures reported on the Schedule are presented on the same basis of accounting as the District’s 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. The 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. In 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 Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Schedule of Expenditures of Federal Awards (“the Schedule”) includes the federal grant activity of East Central Vermont Telecommunications District (“the District”), under programs of the federal government for the year ended December 31, 2023. 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.
Title: Note 2. Basis of Accounting Accounting Policies: The Schedule of Expenditures of Federal Awards (“the Schedule”) includes the federal grant activity of East Central Vermont Telecommunications District (“the District”), under programs of the federal government for the year ended December 31, 2023. 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.. Expenditures reported on the Schedule are presented on the same basis of accounting as the District’s 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. The 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. In 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 Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are presented on the same basis of accounting as the District’s 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.
Title: Note 3. Program Costs Accounting Policies: The Schedule of Expenditures of Federal Awards (“the Schedule”) includes the federal grant activity of East Central Vermont Telecommunications District (“the District”), under programs of the federal government for the year ended December 31, 2023. 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.. Expenditures reported on the Schedule are presented on the same basis of accounting as the District’s 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. The 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. In 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 Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The 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.
Title: Note 4. Major Programs Accounting Policies: The Schedule of Expenditures of Federal Awards (“the Schedule”) includes the federal grant activity of East Central Vermont Telecommunications District (“the District”), under programs of the federal government for the year ended December 31, 2023. 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.. Expenditures reported on the Schedule are presented on the same basis of accounting as the District’s 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. The 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. In 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 Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. In 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.
Title: Note 5. Indirect Cost Rate Accounting Policies: The Schedule of Expenditures of Federal Awards (“the Schedule”) includes the federal grant activity of East Central Vermont Telecommunications District (“the District”), under programs of the federal government for the year ended December 31, 2023. 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.. Expenditures reported on the Schedule are presented on the same basis of accounting as the District’s 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. The 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. In 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 Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 6. Subrecipients Accounting Policies: The Schedule of Expenditures of Federal Awards (“the Schedule”) includes the federal grant activity of East Central Vermont Telecommunications District (“the District”), under programs of the federal government for the year ended December 31, 2023. 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.. Expenditures reported on the Schedule are presented on the same basis of accounting as the District’s 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. The 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. In 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 Organization has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. No amounts expended and reported within the Schedule of Federal Awards were passed through to subrecipients.

Finding Details

Finding 2023-001
2023-001- Preparation of Financial Statements Finding Type: Material weakness in internal controls over financial reporting. Criteria: The District is required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). This is the responsibility of the District’s management. The preparation of the financial statements in accordance with GAAP requires internal controls over both maintaining internal books and records and reporting the external financial statements and the related footnotes. Conditions and context: The current staffing of the District does not allow the District to have an internal control system in place designed to provide for the preparation of the financials and related footnotes being audited. The District requested that the external auditors draft the financial statements and accompanying notes as a result. Cause of condition: Due to the cost and other considerations, the District has requested that their auditors draft the financial statement and related footnotes. Effect of Condition: As a result of this condition, the District lacks internal controls over the preparation of the financials statements in accordance with GAAP, and instead relies, in part, on its external auditors for assistance with this task. Recommendation: It is recommended that the District ensures that members of management responsible for the accounting and reporting function receive appropriate training to ensure they are able to apply generally accepted accounting principals in reviewing and taking responsibility over the financial statements and footnotes prepared by the external audits. We also recommend hiring additional experienced staff to oversee the accounting and reporting function. View of Responsible Officials and Planned Corrective Action: The financial statements were prepared and presented in accordance with GAAP. The finance team continues to review the accounting and presentation of the monthly financial statements and will review the audited drafts of the financial statements for accuracy prior to finalization. Planned Implementation Date of Corrective Action: On-going. The District will continue to evaluate the cost vs. benefit of having someone in management capable of preparation of the financial statements in accordance with GAAP. Person Responsible for Corrective Action: F.X. Flinn, Board Chair
Finding 2023-002
2023-002- Procurement Policy Federal Agency: U.S. Department of the Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Program Year: 2023 Assistance Listing Number: 21.027 Compliance: Procurement and Suspension and Debarment Finding Type: Material weakness in internal controls over compliance. Criteria: Management is responsible for maintaining a policy when using award funds to enter into contracts to procure goods and services necessary. Condition: During compliance testing, it was noted that a procurement policy was not maintained during the entire grant period. Context: It was noted that a formal policy was not in place during the entire grant period. Cause of Condition: Award funds were used to enter into contracts to procure goods and services without a formal policy in place. Effect of Condition: As a result of this condition, the District did not have or follow a policy. Recommendation: It is recommended that the District establish and maintain a formal procurement policy. View of Responsible Officials and Planned Corrective Action: Beginning in October 2023, the District established a procurement policy which formalized the procurement process codified by long standing practices of the District’s operator. Planned Implementation Date of Corrective Action: Implemented Person Responsible for Corrective Action: Not applicable – already in place.
Finding 2023-001
2023-001- Preparation of Financial Statements Finding Type: Material weakness in internal controls over financial reporting. Criteria: The District is required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). This is the responsibility of the District’s management. The preparation of the financial statements in accordance with GAAP requires internal controls over both maintaining internal books and records and reporting the external financial statements and the related footnotes. Conditions and context: The current staffing of the District does not allow the District to have an internal control system in place designed to provide for the preparation of the financials and related footnotes being audited. The District requested that the external auditors draft the financial statements and accompanying notes as a result. Cause of condition: Due to the cost and other considerations, the District has requested that their auditors draft the financial statement and related footnotes. Effect of Condition: As a result of this condition, the District lacks internal controls over the preparation of the financials statements in accordance with GAAP, and instead relies, in part, on its external auditors for assistance with this task. Recommendation: It is recommended that the District ensures that members of management responsible for the accounting and reporting function receive appropriate training to ensure they are able to apply generally accepted accounting principals in reviewing and taking responsibility over the financial statements and footnotes prepared by the external audits. We also recommend hiring additional experienced staff to oversee the accounting and reporting function. View of Responsible Officials and Planned Corrective Action: The financial statements were prepared and presented in accordance with GAAP. The finance team continues to review the accounting and presentation of the monthly financial statements and will review the audited drafts of the financial statements for accuracy prior to finalization. Planned Implementation Date of Corrective Action: On-going. The District will continue to evaluate the cost vs. benefit of having someone in management capable of preparation of the financial statements in accordance with GAAP. Person Responsible for Corrective Action: F.X. Flinn, Board Chair
Finding 2023-002
2023-002- Procurement Policy Federal Agency: U.S. Department of the Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Program Year: 2023 Assistance Listing Number: 21.027 Compliance: Procurement and Suspension and Debarment Finding Type: Material weakness in internal controls over compliance. Criteria: Management is responsible for maintaining a policy when using award funds to enter into contracts to procure goods and services necessary. Condition: During compliance testing, it was noted that a procurement policy was not maintained during the entire grant period. Context: It was noted that a formal policy was not in place during the entire grant period. Cause of Condition: Award funds were used to enter into contracts to procure goods and services without a formal policy in place. Effect of Condition: As a result of this condition, the District did not have or follow a policy. Recommendation: It is recommended that the District establish and maintain a formal procurement policy. View of Responsible Officials and Planned Corrective Action: Beginning in October 2023, the District established a procurement policy which formalized the procurement process codified by long standing practices of the District’s operator. Planned Implementation Date of Corrective Action: Implemented Person Responsible for Corrective Action: Not applicable – already in place.