Audit 310550

FY End
2023-06-30
Total Expended
$30.65M
Findings
2
Programs
2
Organization: Medford Water Commission (OR)
Year: 2023 Accepted: 2024-06-27
Auditor: Isler CPA

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
403485 2023-001 Significant Deficiency - B
979927 2023-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
66.958 Water Infrastructure Finance and Innovation $30.46M Yes 1
97.036 Disaster Grants - Public Assistance $188,604 - 0

Contacts

Name Title Type
KMY6NV94BQ79 Beau Belikoff Auditee
5417742434 Cody Savey Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: 2. Summary of Significant Accounting Policies The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting in accordance with generally accepted accounting principles. Expenditures reported on this schedule are recognized following the cost principles in Title 2 US Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, where certain types of expenditures are not allowable or are limited as to reimbursement. Passthrough entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Did not charge indirect costs to awards The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Medford Water under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 US Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards. Because the schedule presents only a selected portion of the operation of Medford Water, it is not intended to and does not present the financial position, changes in financial position, or cash flow for the Medford Water.
Title: Summary of significant accounting policies Accounting Policies: 2. Summary of Significant Accounting Policies The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting in accordance with generally accepted accounting principles. Expenditures reported on this schedule are recognized following the cost principles in Title 2 US Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, where certain types of expenditures are not allowable or are limited as to reimbursement. Passthrough entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Did not charge indirect costs to awards The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting in accordance with generally accepted accounting principles. Expenditures reported on this schedule are recognized following the cost principles in Title 2 US Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, where certain types of expenditures are not allowable or are limited as to reimbursement. Passthrough entity identifying numbers are presented where available.
Title: Indirect cost Accounting Policies: 2. Summary of Significant Accounting Policies The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting in accordance with generally accepted accounting principles. Expenditures reported on this schedule are recognized following the cost principles in Title 2 US Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, where certain types of expenditures are not allowable or are limited as to reimbursement. Passthrough entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Did not charge indirect costs to awards The District has not elected to use the 10% de minimis cost rate.
Title: Loan Balance Accounting Policies: 2. Summary of Significant Accounting Policies The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting in accordance with generally accepted accounting principles. Expenditures reported on this schedule are recognized following the cost principles in Title 2 US Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, where certain types of expenditures are not allowable or are limited as to reimbursement. Passthrough entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Did not charge indirect costs to awards The loan balabce of the Water Infrastructure Finance and Innovation loans at June 30, 2023 was $ 25,332,045

Finding Details

Assistance Listing Number: 66.958 Federal Agency: Environmental Protection Agency Federal Award Year: 2019 Program Title: Water Infrastructure Finance and Innovation (WIFIA) Repeat finding: No Criteria: Under 2 CFR 200, costs must not consist of improper payments, including payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements. Condition: A selection of 60 internal time charges billed to the loan were selected for testing. Of these, 3 did not match Medford Water Commission approved work rate schedules amounts. All three discrepancies related to the same employee. Cause: Clerical error in rate entry within accounting system. Effect: Drawdowns requested on loan included unallowable costs related to amounts charged for work performed by Medford Water Commission. Known questioned costs are $514. Estimate of likely questioned costs is $20,965. Estimate of likely questioned costs was calculated by projecting the known error rate to the remaining population. Recommendation: Rate changes made in system should be reviewed and documented. Response:Management concurs with this finding
Assistance Listing Number: 66.958 Federal Agency: Environmental Protection Agency Federal Award Year: 2019 Program Title: Water Infrastructure Finance and Innovation (WIFIA) Repeat finding: No Criteria: Under 2 CFR 200, costs must not consist of improper payments, including payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements. Condition: A selection of 60 internal time charges billed to the loan were selected for testing. Of these, 3 did not match Medford Water Commission approved work rate schedules amounts. All three discrepancies related to the same employee. Cause: Clerical error in rate entry within accounting system. Effect: Drawdowns requested on loan included unallowable costs related to amounts charged for work performed by Medford Water Commission. Known questioned costs are $514. Estimate of likely questioned costs is $20,965. Estimate of likely questioned costs was calculated by projecting the known error rate to the remaining population. Recommendation: Rate changes made in system should be reviewed and documented. Response:Management concurs with this finding