FAC Explorer

Audit 309113

FY End
2024-03-31
Total Expended
$1.72M
Findings
2
Programs
2
Organization: Municipal Services Commission of the City of New Castle (DE)
Year: 2024 Accepted: 2024-06-18
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
401088 2024-001 Significant Deficiency - I
977530 2024-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
66.468 Capitalization Grants for Drinking Water State Revolving Funds $1.05M Yes 1
66.458 Capitalization Grants for Clean Water State Revolving Funds $669,138 - 0

Contacts

Name Title Type
EM9ALFXBY7L3 Ken Natale Auditee
3022214517 Cheri Amoss 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 for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Commission has not elected to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Municipal Services Commission (the Commission), a component unit of the City of New Castle, Delaware, under programs of the federal government for the year ended March 31, 2024. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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 Commission, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Commission.
Title: Summary of Significant Account Policies 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 for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Commission has not elected to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. 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 for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Indirect Cost Rate 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 for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Commission has not elected to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. The Commission has not elected to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance.
Title: Revolving Loan Funds 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 for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Commission has not elected to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. The Clean Water and Drinking Water State Revolving Funds are revolving loan funds. Federally funded new loan proceeds provided under these programs are included as expenditures on the Schedule in the year incurred. The Commission had the following loan balance outstanding at March 31, 2024:

Finding Details

Finding 2024-001
Federal Agency: U.S. Department of Environmental Protection Agency Federal Program Name: Drinking Water State Revolving Fund Cluster Assistance Listing Number: 66.468 Federal Award Identification Number and Year: 95302801, FY2022 Pass-Through Agency: State of Delaware - DNREC Pass-Through Number(s): 21000105 Award Period: February 24, 2023 through Project Completion Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Questioned Costs: None Condition/Context: One of one vendor tested did not have proper documentation maintained to support suspension and debarment verification was performed prior to them being paid with federal funds. Per sam.gov, there was no history of the vendor being suspended or debarred. Cause: The Commission’s policies and procedures did not require supporting documentation to be maintained to verify suspension & debarment check prior to entering into transactions. Effect: The Commission could make a disbursement to a vendor that is suspended or debarred. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Commission review its policies and procedures to require documentation be maintained to verify vendors are not suspended or debarred prior to being paid with federal funds. Views of Responsible Officials: Management agrees with the finding.
Finding 2024-001
Federal Agency: U.S. Department of Environmental Protection Agency Federal Program Name: Drinking Water State Revolving Fund Cluster Assistance Listing Number: 66.468 Federal Award Identification Number and Year: 95302801, FY2022 Pass-Through Agency: State of Delaware - DNREC Pass-Through Number(s): 21000105 Award Period: February 24, 2023 through Project Completion Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: When a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Questioned Costs: None Condition/Context: One of one vendor tested did not have proper documentation maintained to support suspension and debarment verification was performed prior to them being paid with federal funds. Per sam.gov, there was no history of the vendor being suspended or debarred. Cause: The Commission’s policies and procedures did not require supporting documentation to be maintained to verify suspension & debarment check prior to entering into transactions. Effect: The Commission could make a disbursement to a vendor that is suspended or debarred. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Commission review its policies and procedures to require documentation be maintained to verify vendors are not suspended or debarred prior to being paid with federal funds. Views of Responsible Officials: Management agrees with the finding.