FAC Explorer

Audit 310223

FY End
2023-12-31
Total Expended
$1.86M
Findings
12
Programs
3
Organization: Lone Pine Economic Development Corporation and Trust (CA)
Year: 2023 Accepted: 2024-06-26
Auditor: Propp Christensen Caniglia LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
403073 2023-001 Significant Deficiency - N
403074 2023-001 Significant Deficiency - N
403075 2023-001 Significant Deficiency - N
403076 2023-002 Significant Deficiency - L
403077 2023-002 Significant Deficiency - L
403078 2023-002 Significant Deficiency - L
979515 2023-001 Significant Deficiency - N
979516 2023-001 Significant Deficiency - N
979517 2023-001 Significant Deficiency - N
979518 2023-002 Significant Deficiency - L
979519 2023-002 Significant Deficiency - L
979520 2023-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.415 Rural Rental Housing Loans $1.60M Yes 2
10.427 Rural Rental Assistance Payments $189,065 Yes 2
10.437 Interest Assistance Programs $67,056 Yes 2

Contacts

Name Title Type
HGDNH24QNL83 Cameo Townzen Auditee
5308232477 Debbi Christensen Auditor
No contacts on file

Notes to SEFA

Title: NOTE A - 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 Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% de minimis reimbursement rate. Lone Pine Economic Development Corporation has not charged any indirect costs to its federal programs since the Uniform Guidance became applicable, and has yet to determine if it will elect the 10% de minimis reimbursement rate. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Lone Pine Economic Development Corporation, Case No. 953661244 01-6, 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 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 the selected portion of the operations of Lone Pine Economic Development Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Lone Pine Economic Development Corporation.
Title: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% de minimis reimbursement rate. Lone Pine Economic Development Corporation has not charged any indirect costs to its federal programs since the Uniform Guidance became applicable, and has yet to determine if it will elect the 10% de minimis reimbursement rate. 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.
Title: NOTE C - INDIRECT COST REIMBURSEMENTS 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 Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% de minimis reimbursement rate. Lone Pine Economic Development Corporation has not charged any indirect costs to its federal programs since the Uniform Guidance became applicable, and has yet to determine if it will elect the 10% de minimis reimbursement rate. The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% de minimis reimbursement rate. Lone Pine Economic Development Corporation has not charged any indirect costs to its federal programs since the Uniform Guidance became applicable, and has yet to determine if it will elect the 10% de minimis reimbursement rate.
Title: NOTE D - MORTGAGE PAYABLE 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 Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% de minimis reimbursement rate. Lone Pine Economic Development Corporation has not charged any indirect costs to its federal programs since the Uniform Guidance became applicable, and has yet to determine if it will elect the 10% de minimis reimbursement rate. The mortgage payable represents a permanent building loan provided by Rural Rental Housing. The balance outstanding on the mortgage as of December 31, 2023 totaled $1,580,760.

Finding Details

Finding 2023-001
Statement of Condition The Corporation did not make all the required replacement reserve deposits during the year ended December 31, 2023 causing the replacement reserve cash account to be underfunded by $69,604 at December 31, 2023. Criteria The Corporation is required to fund the replacement reserve in accordance with RD requirements and agreements. Effect The Corporation is out of compliance with RD regulations. Cause The underfunding of the replacement reserve cash account was the result of an inadvertent bookkeeping oversight. Recommendation We recommend the Corporation makes the required monthly deposits to the replacement reserve cash account and transfer $69,604 to the replacement reserve cash account. Reporting Views of Responsible Officials Management is aware that the replacement reserve account needs to have deposits made during the year to comply with RD regulations and will transfer $69,604 to the replacement reserve cash account.
Finding 2023-001
Statement of Condition The Corporation did not make all the required replacement reserve deposits during the year ended December 31, 2023 causing the replacement reserve cash account to be underfunded by $69,604 at December 31, 2023. Criteria The Corporation is required to fund the replacement reserve in accordance with RD requirements and agreements. Effect The Corporation is out of compliance with RD regulations. Cause The underfunding of the replacement reserve cash account was the result of an inadvertent bookkeeping oversight. Recommendation We recommend the Corporation makes the required monthly deposits to the replacement reserve cash account and transfer $69,604 to the replacement reserve cash account. Reporting Views of Responsible Officials Management is aware that the replacement reserve account needs to have deposits made during the year to comply with RD regulations and will transfer $69,604 to the replacement reserve cash account.
Finding 2023-001
Statement of Condition The Corporation did not make all the required replacement reserve deposits during the year ended December 31, 2023 causing the replacement reserve cash account to be underfunded by $69,604 at December 31, 2023. Criteria The Corporation is required to fund the replacement reserve in accordance with RD requirements and agreements. Effect The Corporation is out of compliance with RD regulations. Cause The underfunding of the replacement reserve cash account was the result of an inadvertent bookkeeping oversight. Recommendation We recommend the Corporation makes the required monthly deposits to the replacement reserve cash account and transfer $69,604 to the replacement reserve cash account. Reporting Views of Responsible Officials Management is aware that the replacement reserve account needs to have deposits made during the year to comply with RD regulations and will transfer $69,604 to the replacement reserve cash account.
Finding 2023-002
Statement of Condition The Project's December 31, 2022, financial statement audit was not submitted to the Federal Audit Clearinghouse. Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Effect The Project is out of compliance with the reporting requirements detailed in the Uniform Guidance. Cause Management was unaware of the criteria within Uniform Guidance to submit the audit to the Federal Audit Clearinghouse. Recommendation We recommend that policies and procedures be implemented to ensure the financial statement audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Reporting Views of Responsible Officials Management agrees with the recommendation and will work with the auditor to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management has taken substantial steps to prevent this from happening in the future, including but not limited to an internal review of all accounting policies and procedures, a review of methodologies and tools used to track accounting deadlines and commitments.
Finding 2023-002
Statement of Condition The Project's December 31, 2022, financial statement audit was not submitted to the Federal Audit Clearinghouse. Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Effect The Project is out of compliance with the reporting requirements detailed in the Uniform Guidance. Cause Management was unaware of the criteria within Uniform Guidance to submit the audit to the Federal Audit Clearinghouse. Recommendation We recommend that policies and procedures be implemented to ensure the financial statement audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Reporting Views of Responsible Officials Management agrees with the recommendation and will work with the auditor to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management has taken substantial steps to prevent this from happening in the future, including but not limited to an internal review of all accounting policies and procedures, a review of methodologies and tools used to track accounting deadlines and commitments.
Finding 2023-002
Statement of Condition The Project's December 31, 2022, financial statement audit was not submitted to the Federal Audit Clearinghouse. Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Effect The Project is out of compliance with the reporting requirements detailed in the Uniform Guidance. Cause Management was unaware of the criteria within Uniform Guidance to submit the audit to the Federal Audit Clearinghouse. Recommendation We recommend that policies and procedures be implemented to ensure the financial statement audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Reporting Views of Responsible Officials Management agrees with the recommendation and will work with the auditor to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management has taken substantial steps to prevent this from happening in the future, including but not limited to an internal review of all accounting policies and procedures, a review of methodologies and tools used to track accounting deadlines and commitments.
Finding 2023-001
Statement of Condition The Corporation did not make all the required replacement reserve deposits during the year ended December 31, 2023 causing the replacement reserve cash account to be underfunded by $69,604 at December 31, 2023. Criteria The Corporation is required to fund the replacement reserve in accordance with RD requirements and agreements. Effect The Corporation is out of compliance with RD regulations. Cause The underfunding of the replacement reserve cash account was the result of an inadvertent bookkeeping oversight. Recommendation We recommend the Corporation makes the required monthly deposits to the replacement reserve cash account and transfer $69,604 to the replacement reserve cash account. Reporting Views of Responsible Officials Management is aware that the replacement reserve account needs to have deposits made during the year to comply with RD regulations and will transfer $69,604 to the replacement reserve cash account.
Finding 2023-001
Statement of Condition The Corporation did not make all the required replacement reserve deposits during the year ended December 31, 2023 causing the replacement reserve cash account to be underfunded by $69,604 at December 31, 2023. Criteria The Corporation is required to fund the replacement reserve in accordance with RD requirements and agreements. Effect The Corporation is out of compliance with RD regulations. Cause The underfunding of the replacement reserve cash account was the result of an inadvertent bookkeeping oversight. Recommendation We recommend the Corporation makes the required monthly deposits to the replacement reserve cash account and transfer $69,604 to the replacement reserve cash account. Reporting Views of Responsible Officials Management is aware that the replacement reserve account needs to have deposits made during the year to comply with RD regulations and will transfer $69,604 to the replacement reserve cash account.
Finding 2023-001
Statement of Condition The Corporation did not make all the required replacement reserve deposits during the year ended December 31, 2023 causing the replacement reserve cash account to be underfunded by $69,604 at December 31, 2023. Criteria The Corporation is required to fund the replacement reserve in accordance with RD requirements and agreements. Effect The Corporation is out of compliance with RD regulations. Cause The underfunding of the replacement reserve cash account was the result of an inadvertent bookkeeping oversight. Recommendation We recommend the Corporation makes the required monthly deposits to the replacement reserve cash account and transfer $69,604 to the replacement reserve cash account. Reporting Views of Responsible Officials Management is aware that the replacement reserve account needs to have deposits made during the year to comply with RD regulations and will transfer $69,604 to the replacement reserve cash account.
Finding 2023-002
Statement of Condition The Project's December 31, 2022, financial statement audit was not submitted to the Federal Audit Clearinghouse. Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Effect The Project is out of compliance with the reporting requirements detailed in the Uniform Guidance. Cause Management was unaware of the criteria within Uniform Guidance to submit the audit to the Federal Audit Clearinghouse. Recommendation We recommend that policies and procedures be implemented to ensure the financial statement audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Reporting Views of Responsible Officials Management agrees with the recommendation and will work with the auditor to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management has taken substantial steps to prevent this from happening in the future, including but not limited to an internal review of all accounting policies and procedures, a review of methodologies and tools used to track accounting deadlines and commitments.
Finding 2023-002
Statement of Condition The Project's December 31, 2022, financial statement audit was not submitted to the Federal Audit Clearinghouse. Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Effect The Project is out of compliance with the reporting requirements detailed in the Uniform Guidance. Cause Management was unaware of the criteria within Uniform Guidance to submit the audit to the Federal Audit Clearinghouse. Recommendation We recommend that policies and procedures be implemented to ensure the financial statement audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Reporting Views of Responsible Officials Management agrees with the recommendation and will work with the auditor to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management has taken substantial steps to prevent this from happening in the future, including but not limited to an internal review of all accounting policies and procedures, a review of methodologies and tools used to track accounting deadlines and commitments.
Finding 2023-002
Statement of Condition The Project's December 31, 2022, financial statement audit was not submitted to the Federal Audit Clearinghouse. Criteria Uniform Guidance 2 CFR 200.512(a) requires that financial audits are completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Effect The Project is out of compliance with the reporting requirements detailed in the Uniform Guidance. Cause Management was unaware of the criteria within Uniform Guidance to submit the audit to the Federal Audit Clearinghouse. Recommendation We recommend that policies and procedures be implemented to ensure the financial statement audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Reporting Views of Responsible Officials Management agrees with the recommendation and will work with the auditor to ensure the financial audit is submitted to the Federal Audit Clearinghouse within the required timeframe. Management has taken substantial steps to prevent this from happening in the future, including but not limited to an internal review of all accounting policies and procedures, a review of methodologies and tools used to track accounting deadlines and commitments.